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10 Questions to Ask Your Clients About Their Crypto Assets

If you are currently working with or are considering working with clients who have invested in cryptocurrency, it’s important to have full transparency into their crypto assets. Having insight into asset storage, historical records, and taxation can positively impact your ability to do your job as trustee.

Below we’ve identified 10 important questions to ask your clients about their existing crypto assets and how they want their cryptocurrency distributed at death.

  1. Do you currently own cryptocurrencies or intend to in the future?
  2. Do you store cryptocurrency via a custodian, hot wallet, or cold wallet?
  3. Do you have historical records of cryptocurrency transactions?
  4. How do you handle tax accounting for cryptocurrencies?
  5. Have you updated your will to include your crypto assets?
  6. How do you want the cryptocurrency distributed at death?
  7. Are you aware probate court is public record and any crypto information in a will is available to the public?
  8. Does the trust document prevent or allow for cryptocurrency investments?
  9. Do you understand that the trustee has a duty to follow the Uniform Prudent Investor Act (UPIA), which includes requirements such as diversification and consideration of tax consequences?
  10. If a trust is meant to hold cryptocurrency or other similar assets, are you willing to release and indemnify the trustee from UPIA’s duty to diversify?

Download a copy of these questions to bring along with you during your next client meeting.