One of the hot new investment trends is NFTs, or Non-Fungible Tokens. Because it is so new, questions come up about how this investment is funded into a revocable living trust. In this video, I run through the basics of NFTs and how they need to be titled to work with your revocable living trust to avoid probate.
NFTs are digital artwork. It is digitally owned by you and has unique security features so it cannot be stolen. It becomes a possession of yours that actually has a value that people will pay money for.
Think about it as if you were investing in artwork. That is the key to seeing how it should be treated by your revocable living trust.
Is It Pre-Taxed Money?
No, it’s not so we don’t have to worry about any adverse tax consequences titling it in the name of the trust as you would with an IRA or a 401K.
Are there any beneficiary designations that would make it easier to simply do that and effectively avoid probate?
We are such at the beginning of NFTs, digital unique assets with the security measure showing that it is entitled to you and only you, you’re the owner. I haven’t seen any beneficiary designations at all, so we don’t have to worry about that.
So What’s The Conclusion?
Yes, putting it directly and titling it directly in the name of the trust is the best way to go.
You can view the video in its entirety on my YouTube Channel Here.