• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Unsworth LaPlante, PLLC

Vermont Estate Planning Attorneys

Vermont: (802) 879-7133

Attend A Free Webinar
  • Home
  • Our Firm
    • About Our Firm
    • Meet Our Team
    • What to Expect When Working with Us
  • Services
    • Estate Planning
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Medicaid Planning & Elder Law
    • Pet Planning
    • Special Needs Planning
    • Young Families Planning
  • Resources
    • Articles
    • Elder Law Reports
    • Elder Law Resources
      • Burlington
      • Montpelier
      • Rutland
      • St. Johnsbury
      • White River Junction
    • Estate And Gift Tax Figures
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Estate and Gift Tax
      • Estate Planning
      • FAQs for Families Without an Estate Plan
      • Incapacity Planning
      • IRA & Retirement Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Pet Planning
      • Special Needs Planning
      • Trust Administration
      • Trusts
      • Wills
    • Is Your Estate Plan Outdated?
    • Medicaid Resources
      • Medicaid Analysis Worksheet
      • Medicaid Guide
      • Vermont Medicaid
    • Newsletters
    • Presentations
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
    • SECURE Act
    • Top Estate Planning Techniques
  • Webinars
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact
Home » Bitcoins are Digital Assets

Bitcoins are Digital Assets

September 19, 2014 by Ellen LaPlante

For estate planning and tax advisers, there’s been a bit of new ground broken in recent years; a bit of digital bitcoins are digital assetsground. For some time, we’ve encouraged our clients to not underestimate the value of their digital assets. Even if they don’t have a music trove of the best music from the 70s and 80s, odds are, they have photos stored online and if they do any kind of business at all, there are bound to be user names and passwords that loved ones may need access to in the event of your death. You may not have every Eagles song on your iPhone or in the cloud, but you may have forgotten those Amazon gift cards that are patiently waiting for you to make use of. Maybe you have that small insurance policy that you bought four years ago and the insurance agent’s name is stored in that password protected Excel book? Just as we remind clients of the potential goldmine online that they’ve forgotten about, a new player enters. We’ve all heard the hype about digital currency. Many of us are still a bit less drawn to it, but you should know, Bitcoins are indeed digital assets.

They’re as important as any other asset you have and in order to provide a complete estate plan, it’s crucial that you not overlook them. And make no mistake – this isn’t a temporary phase, like say…8 track tapes (which, by the way, used to be the only vehicle for Eagles’ music), these new types of assets are here to stay.

Bitcoins are Digital Assets, But There’s More

Did you know there are more than 200 virtual currencies in use around the world? Bitcoin is by far the most recognized and certainly widely used, but this is a growing sector in the online world. Don’t let Bitcoins’ less than ideal press scare you, despite its dramatic rise and fall in recent months, it’s being used far more often than you realize.

In fact, did you know folks have been using Bitcoins when ordering food online since 2010? Ten-thousand Bitcoins equated to $41 in 2010 and paid for two large pizzas ordered online and delivered by a Papa John’s restaurant in Jacksonville, Florida. Today, the price for a single Bitcoin can cost you as much as $1,000. The value fluctuates, of course, just like cash, but you wouldn’t dream of not including all of your assets in your estate planning.

Even the Fed Gets It

A new IRS Notice 2014-21 was released earlier this year to provide direction on how U.S. tax principles will work with virtual currency. It treats Bitcoin – and all of the other virtual currencies – as property for federal tax purposes. Its value is calculated in U.S. dollars. That puts a new perspective on the virtual cash we’ll never hold or touch, yes? The challenge for governments moving forward is how foreign currency gains or losses will be calculated for federal tax purposes.

Virtual currency like Bitcoin is still in its infancy; just look at the stumbling blocks it’s had in recent years. You can be sure, though, this is temporary and someday soon, you might be calling your estate planning lawyer to ensure those important digital assets become part of your overall estate. When you do, we’re here to help.

  • Author
  • Recent Posts
Ellen LaPlante
Ellen LaPlante
Ellen LaPlante is an attorney whose mission is to provide clients with guidance in Estate Planning, Elder Law, and Medicaid Preparation. She is barred in Vermont and New York. Ellen helps clients put together unique estate plans, including assistance with Trusts, Wills, Powers of Attorney, and Advance Directives. She also works with clients on Medicaid Planning and qualifying for Medicaid assistance.
Ellen LaPlante
Latest posts by Ellen LaPlante (see all)
  • An Overview of 2022 Medicare Out of Pocket Costs - December 21, 2021
  • Why Would Someone Use a Life Estate? - November 23, 2021
  • Understand the Potential Impact of Alzheimer’s Disease  - November 9, 2021

Filed Under: General

Other Articles You May Find Useful

Essex Junction estate planning attorney
Why Do I Need an Advance Directive?
Essex Junction probate attorneys
What Assets Avoid Probate?
Essex Junction estate planning attorney
What Should Be Included in My Estate Plan?
Essex Junction trust administration attorneys
Can a Trustee Be Fired?
Essex Junction estate planning attorney
Veterans Aid and Attendance Benefits – What You Should Know
Essex Junction trust attorneys
Common Trusts Explained

Primary Sidebar

Elder Law and Medicaid Planning Attorneys

Unsworth LaPlante, PLC

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Blog Subscription

  • This field is for validation purposes and should be left unchanged.

Essex Junction, VT

26 Railroad Ave
Essex Junction, VT 05452
United States (US)
Phone: (802) 879-7133
Fax: (802) 879-0408

Map

unsworth_sidbr_map

Office Hours

Monday8:00 AM - 4:00 PM
Tuesday8:00 AM - 4:00 PM
Wednesday8:00 AM - 4:00 PM
Thursday8:00 AM - 4:00 PM

Footer

footer-logo
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

The information on this Vermont Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

American Academy of Estate Planning Attorneys, Inc. Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2022 American Academy of Estate Planning Attorneys, Inc.