Investment Portfolios

For investment portfolios, we recommend that you leave clear instructions for the allocation of these assets. Work with your investment advisor and others to determine the best ways to ensure your heirs can benefit from your generosity. 

Remember, without specific instructions, your Executor/Executrix/Person-in-Charge (PIC) will be required to liquidate all portfolio holdings in order to consolidate the assets of the estate prior to any distributions to the beneficiary(ies). 

By "instructions", we mean clarification of the following:

• State if a specific portfolio should be given to an individual or charity in its entirety
• Decide if portfolio assets should not be liquidated, but instead, be evenly divided among the designated beneficiaries
• Specify what real property(ies) should be given to which individual(s) and/or organization(s)

We urge you to discuss this with you lawyer, accountant - to better understand any tax implications for the beneficiary - and financial planner before making your final decisions.

Cryptocurrencies, like Bitcoin, are only held electronically in an online wallet. There is no financial institution nor individual contact for this asset; it is all electronic.

Cryptocurrencies may be part of your retirement or savings portfolios. If so, the electronic nature of the investment is somewhat different from other types of assets. 

You will still need to provide instructions on how your cryptocurrency(ies) accounts should be dealt with after your passing. At a minimum, leave instructions with your lawyer or a trusted individual on how to access your electronic "key" to open your cryptocurrency "wallet(s)". The key is might be on a thumb drive or possibly written down somewhere. Generally, it is NOT kept online to prevent security breaches.

It is safer to assume that dealing with cryptocurrencies means there will be no paper documentation. 

Everything is online. 

Usually, the following retirement/saving accounts have an option to identify a beneficiary. In some states, if one is not designated, the beneficiary automatically becomes your spouse, if you have one.

• 401K and/or KEOGH portfolios
• IRA
• Corporate retirement accounts
• College savings accounts (529 plan)

These types of portfolios should also be part of the list of accounts you create for your Executor/Executrix/PIC with the relevant contact information.

Based on the tax implications for liquidating these accounts, we recommend you check with your financial advisor and financial institution about the possibility of having these rolled over into an account for the beneficiary upon your demise, rather than liquidating them. 

Whatever your preference is - again, make sure you document your wishes. 

Also, note that if there is a designated beneficiary, the investment/ proceeds DO NOT become part of the assets of the estate, but are paid directly to the designated beneficiary.