Paul L. Caron

Thursday, December 16, 2021

Non-Fungible Tokens: What Every Estate Planner Needs To Know

Gerry W. Beyer (Texas Tech; Google Scholar), Non-Fungible Tokens: What Every Estate Planner Needs to Know:

Your client may own non-fungible tokens (NFTs) and ask you for estate planning advice. Would you be caught off-guard and give your client the classic “deer in the headlights” look? Obviously, that would not be prudent. To make sure this doesn’t happen to you, this article uses a FAQ approach to provide you with the background and information you need so that you will understand NFTs and how to give your client sage advice on how to handle them during the client’s lifetime and upon death.

1. What is a non-fungible token?
A non-fungible token (NFT) is an electronic asset that is uniquely identified. It is nonfungible meaning that each NFT is distinguishable from all other NFTs; no two are the same like snowflakes. It is a digital token rather than a physical token like a casino chip or a coupon. By comparison, cryptocurrency like Bitcoins are fungible tokens in that every Bitcoin is the same as every other Bitcoin.

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