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Digital assets are now part of our daily lives. They span cryptocurrency, domain names and NFTs. They may be worth little or a small fortune. Yet many people overlook them in estate planning. That leaves families at risk of losing access or losing value.
At Forum Estates, we help you plan for the real world and the digital one too. Here’s a full guide.
The Landscape of Digital Assets
Digital assets pose special estate challenges. They are intangible, secured by private keys or account access. Unlike bank accounts, they may vanish without proper planning.
Canada treats cryptocurrencies as commodities or property. That means your crypto and NFTs can be inherited, but only if they’re accessible to your executor (mondaq.com). Domain names and NFTs sit in a similar place, often governed by contracts and access rights, not simple ownership.
Why This Matters in Alberta
In Edmonton, families leave behind a mix of traditional assets and digital ones. Crypto might sit in a hardware wallet. NFTs may exist in a blockchain wallet. A domain name might power the family’s small business.
If your will does not mention these, your heirs may have no real path to claim them. Access may be blocked. Accounts may be sealed. Domain names may lapse. Digital assets can vanish.
The Risks of Not Planning
- Crypto locked forever
Without the private key, it is nearly impossible to move or sell crypto. That means potential wealth can disappear.
- Expired domains and lost value
One Canadian family nearly lost the domain Carrot.com, estimated value around $600,000, when the domain expired and was up for auction. They regained it only by luck (bequest.com).
- NFTs with no heirs
NFTs may hold financial or sentimental value. Yet if heirs lack access or instructions, those assets vanish.
How Canadian Law Treats Digital Assets
The legal system is catching up, but slowly:
- Crypto recognized as property
Canadian law treats cryptocurrency as property. It passes through your estate like other personal assets (hullandhull.com).
- Domain names and NFTs
These are less clearly defined in law. Domain names can expire. NFTs may be governed by platform settings or contracts. There is no uniform legal framework yet, so planning is vital (estatesearch.ca).
Practical Steps for Planning
- 1. Your Digital Assets
List every asset clearly:
- Crypto: wallets (hardware), exchange accounts, amounts.
- NFTs: token addresses, platforms, wallet addresses.
- Domains: names, renewal date, registrars.
- 2. Secure Access Information
Keep store password hints or keys. Do not put them in the will (which is made public with probate). Instead, either store it as encrypted or use a password manager or locked vault. Write the place in your estate plan without exposing to the open (pridlelaw.ca).
- 3. Appoint a Digital Executor
Name someone tech-savvy and trustworthy. This executor understands digital access and can manage the assets according to your wishes.
- 4. Describe Access Procedures
Provide clear, step-by-step instructions to your executor. This could be a separate “digital vault document.” Make it legal, yet secure.
- 5. Include in Your Will
Mention that you hold digital assets. Name your digital executor. Say where to find access information.
- 6. Think About Trusts
The crypto assets can be deposited in a trust in large amounts. Trusts permit safe passive transfer by a trustee on instructions. They would be able to maintain anonymity and escape probate prying (greene-greene.com).
- 7. Mind the Tax Rules
In Canada, death triggers a “deemed disposition.” That means your crypto or NFTs are treated as sold at fair market value on death, potentially causing capital gains tax. If assets go to your spouse, the tax may be deferred (taxpartners.ca).
Why It Matters Today
Digital assets are growing in value and prevalence. Canadian families may hold:
- Bitcoin or Ethereum worth thousands.
- NFTs with emotional or financial weight.
- Domain names tied to a business or personal brand.
If no plan exists, the executor faces confusion. Assets may disappear. Value may evaporate.
Forum Estates is Here to Help
At Forum Estates in Edmonton, we guide digital-aware families across Alberta.
- We help you:
- Create digital asset inventories.
- Appoint the right digital executor.
- Store access notes securely.
- Handle crypto, NFTs, domains in your will.
- Plan trusts if needed.
- Understand tax implications.
You built digital wealth. Make sure it passes on securely.
Summary Table
Asset Type | Key Planning Action |
Cryptocurrency | Inventory, access storage, digital executor, mention in will |
Domain Names | Track expiry, legacy instructions, appoint admin |
NFTs | List tokens, note platform, ensure executor access |
All Assets | Secure access, tax planning, digital executor |
Final Thought
Your digital assets are more than data. They may be part of your family’s legacy. Without clarity and planning, that legacy can vanish. But with the right steps, you preserve value and protect loved ones.
At Forum Estates, we plan for tomorrow, digital and beyond.
References
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