Home Case Studies The unforeseen challenge of managing digital assets

The unforeseen challenge of managing digital assets

The Situation:

John, aged 80, has a valuable cryptocurrency portfolio and numerous online accounts. He made a standard Lasting Power of Attorney (LPA), appointing his daughter Sarah as his attorney, but it didn’t include a specific clause for digital assets. When John suddenly lost mental capacity, Sarah needed to manage his online finances.

The Fallout:

Banks and cryptocurrency exchanges denied Sarah access because the standard LPA didn’t explicitly grant her authority to manage digital assets.
The cryptocurrency portfolio, which required active management, was frozen, and its value dropped significantly.
As John had not considered his digital assets, he did not leave a record of the details for any of them.
Sarah was also locked out of John’s online banking, leading to unpaid bills and financial chaos.

The Outcome:

Sarah approached Hedges Law for help. They advised her that a lengthy and costly application to the Court of Protection was the only solution.
After receiving the court order, Sarah could finally manage her father’s assets, but not before a considerable financial loss had occurred.

Why this matters:

This case study highlights the importance of a detailed LPA. A standard document is often insufficient for modern assets like cryptocurrency. Sarah, learning from this experience, created her own LPA with a specific clause for digital assets, ensuring her attorneys would have the necessary authority to act swiftly and effectively. She also kept an up-to-date inventory of her digital assets.

At Hedges Law, we make setting up your Business LPA simple, clear, and tailored to protect your hard work, team, and legacy.

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