Estate Planning With NFTs

Estate Planning with NFTs

What is NFT?

NFT or NonFungible Tokens are the new product of Blockchain Technology boosted with the power of Cryptocurrency! 

Confused? It might be easier to describe NFTs as representations of Digital arts or collectibles (which can range from basketball cards to tweets) that act as proof of Ownership for these Digital Assets. With Fractional NFTs coming into the scene and the use cases of NFTs being discussed beyond NFT Art, with proper planning NFTs could become an asset of day-to-day use. 

Cryptocurrency is used to buy NFTs (especially Digital NFT Art) on several NFT Marketplaces. There are many aspects of NFTs (technical or financial). Newbies in the Crypto and NFT world often get perplexed while trying to understand how to make NFTs, how to invest in NFTs, how to buy or sell NFTs

If you are among those people who want to understand this new way to earn money or if you are a Digital creator who wants to get the gist of NFT Art, then make sure to apprehend Cryptocurrency (the knowledge of Cryptocurrency Exchanges and Wallets is essential to dive in the concept of NFTs).

What is Estate Planning?

The act of making a plan for your Estate is known as Estate Planning. Filling up paperwork like Wills and Powers-of-Attorney to legally authorize your last desires for your possessions is part of this process.  

In other words, Estate Planning is the procedure of using legal paperwork and an Executor to keep your Beneficiaries financially secure for a long period after you’ve passed away.  

Estate Planning is quite different from just creating a Will (as some people might comprehend). Estate Planning Vs Will is a subject that may perplex people, which is why understanding Estate Planning Basics is quite important. Will is one of the many Estate Planning documents (others are Trust, Power-of-Attorney, Guardianship Designations, Letter of Intent, Beneficiary Designation, or Advanced Directives) required to plan for assets.

What Is The Purpose Of Making An Estate Plan For NFTs?

For many people (including public figures like Justin Bieber, Gwyneth Paltrow, or Eminem who have invested heavily in NFTs, particularly through BAYC), NFTs (and Cryptocurrency) act as financial assets with huge values. These monetary assets can benefit their family members as well in the future. 

But if the family members are not aware of these assets or do not know how to access them (since these assets are available digitally only) or how to divide these assets, then it could result in potential family disputes and financial crisis after the demise of the owner. The investment made in these NFTs would not bear any result if they are completely forgotten. 

To protect your NFT investment, create a comprehensive guide that includes the NFT Marketplaces or platforms used to store, buy, and sell NFTs and the technical steps to access them. Wills and Trusts could be used to state how the NFTs are to be managed. For Digital Assets like Cryptocurrency, the use of both Trusts and Will is advised (the difference between Will and Trust is the way Trust manages to remove the chances of Probate, which is essential when it comes to Digital Assets which can be hacked if their details go public).

Creating, updating, and maintaining an Estate Plan may appear difficult to some, but a Digital Estate Plan simplifies the process of planning for your Cryptocurrency and other Digital Assets.

The goal of Digital Estate Planning is to meet the security and legal requirements of Digital Assets. Clocr makes it simple to build and maintain a Digital Estate Plan, allowing you to safeguard assets of personal and financial worth to you and your family.