By now, most people have heard the word “NFT” in one way or another. If you have, but still are unsure about what that means, you are not alone. For starters, NFT stands for non-fungible token. According to Merriam-Webster, a “non-fungible token” is a “unique digital identifier that cannot be copied, substituted, or subdivided, that is recorded in a blockchain, and that is used to certify authenticity and ownership (as of a specific digital asset and specific rights relating to it).” These non-fungible tokens are unique, and when one is purchased, the buyer becomes a holder of the NFT. In addition, there are several online sites to purchase or sell NFTs, such as Opeansea.com or Rarible.com.
Some NFTs have been recorded to have sold for millions of dollars. Among many others, a famous NFT artist “Beeple” sold an NFT piece for the shocking amount of approximately 69 million dollars. NFTs are a seemingly big part of the internet’s future and a great financial asset to many people.
If you are a holder of NFTs then you may be wondering what will happen to them when you pass away. No one would be willing to lose thousands or even millions of dollars by failing to plan for their estate. Since NTFs are just as valuable as your tangible assets, such as your house or your car, they should be treated no differently. The time to plan is now and the first step is to consider a revocable living trust.
The good news is that you can plan ahead to protect your NFT(s) by placing them into a revocable living trust. A revocable living trust is a legal agreement created during your lifetime that details how the trust property is to be managed should you become incapacitated or how it is distributed at your death. During your life, you would need to fully ‘fund’ the revocable living trust by transferring your assets into it. The terms you put in place would control after you death and the successor trustee would then take care of all assets according to your wishes, including all NFTs.
So, if you or a loved one has any NFTs in their collection, it is important to plan for the future and protect your assets. After you’ve read this article and you’ve found that you have additional questions or think you may need assistance in securing a plan for your NFTs, be sure to call an experienced Florida estate planning attorney who has experience in with NFTs and cryptocurrencies so they can get this taken care of for you immediately.
The Florida Medicaid Planning & Elder Law Firm has a team of experienced Estate Planning and Elder attorneys located in Coral Springs, Florida. As attorneys who have extensive knowledge in Estate Planning law, we understand it can be a time-consuming and a complicated process. If you are currently in need of an Estate Plan and have NFTs, contact us to set up an appointment to evaluate your options. We serve the entire state of Florida so call us at 954-999-9683 or email us at firstname.lastname@example.org.