Abstract
Digital assets encompass a broad range of electronic files, images, accounts, and information. Some have limited monetary value, but they may require preservation because of sentimental value to family members or loved ones. Conversely, these assets might also require protection from disclosure due to privacy or other concerns. Other digital assets, including comparatively novel ones such as cryptocurrencies or NFTs, have potentially significant monetary value that needs to be secured and transferred.
This outline provides an overview of technical and legal considerations affecting digital assets that are relevant to planners and fiduciaries. Digital assets can present challenges in discovering, reporting, securing, and transferring their ownership. Owners also face valuation and tax compliance challenges on account of their status as capital assets, which requires careful tracking of basis and realization events. Volatility and transaction fees can add to these challenges.