But what about newer digital assets, like money in your Robinhood portfolio?
Or the balance of your account in PayPal?
And what about your cryptocurrency which may be protected by a private key only you have access to?
Getting your affairs in order? Here arefive estate planning movesyou can make today — even on a budget.
What Happens to My Crypto When I Die?
Crypto is no longer an obscure novelty.
More Americans than ever before arebuying digital currency.
But without a solid plan in place, your loved ones may never see those coins after you die.
There are two main ways to own cryptocurrency and how its stored makes a difference in estate planning.
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The same applies to crypto held on apps like Robinhood and PayPal.
The actual crypto remains in a ledger on the blockchain.
Store the information in the right place.
There are too many high-profile stories of people losing crypto fortunes by misplacing their wallet keys.
Most importantly, check that the right person knows how to access your information when the time comes.
Still, be extremely careful with your crypto wallet.
Can I Name a Beneficiary to My Investment App Accounts?
Not all investment accounts let you pick a beneficiary.
Robinhood is a prime example.
You cant designate beneficiaries or open a joint account on this online-only investment platform.
That leaves your family with one option and it isnt pretty.
Any Robinhood account you have will end up going through probate,McClanahan told The Penny Hoarder.
Probate is a dreaded word in the estate planning industry for a reason.
It costs money and the whole ordeal may not even seem worth it depending on your account balance.
On its website, Robinhood says its in the process of adding beneficiary designations in the future.
Its going to be a pain to get that money back.
It may be tempting but its not advisable.
Thats totally not legal, McClanahan said.
Its easy for people to do though, and it probably happens more than we know.
What About Money Transfer Apps Like PayPal, Cash App and Venmo?
Neither PayPal nor its child company Venmo lets users assign a beneficiary to their account.
However, if you have a PayPal Business account, you canadd other users.
you could create multiple logins and assign specific privileges to each user.
Finally, Cash App lets you assign a beneficiary to your investment account.
However, you cant assign one to your general Cash App account.
To add a beneficiary to your Cash App investment account, you need tocontact customer service.
A digital executor specifically handles your digital assets.
Be selective about whom you trust with this sensitive task, and communicate whats expected of them.
Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
