What is an NFT?

An NFT is the acronym for Non-Fungible Tokes. A NFT is something that is one-of-a-kind. It is unique but unlike, say a work of art, you cannot touch it. It is actually a digital asset. JPG files, GIF files, and MP3 files all might be examples of NFTs.

Why is owning an NFT different from typical assets when it comes to estate planning?

When you buy an NFT you are acquiring the digital code rather than an actual object. NFTs may be passed on to your heirs but it is crucial that this accomplished correctly. You must ensure that any password (or personal key) be available and that your estate plan is explicit in directing how the NFT is to be transferred. It is vital that your estate plan includes consideration of NFTs.

Similarly, to Cryptocurrency, you will want to work closely with an attorney and/or with a financial planner to help organize and manage any NFTs that you may own, or are looking to purchase. You'll also want to carefully consider how and when you'll want any NFTs you own to be passed down to your designated beneficiaries, as you would with any tangible assets that you own.

How an estate planning attorney can help you

By optimizing the transfer of assets and responsibilities, business succession planning also reduces potential tax burdens, maximizing wealth preservation for the family and heirs. Ultimately, integrating business succession planning into estate planning ensures a seamless and efficient transfer of business ownership while securing the financial future of both the business and its beneficiaries.

If you have any questions about NFTs, and including those assets in your estate planning, call The Whipple Law Group today to set up a consultation with one of our attorneys.