The future of finance and money is evolving as we speak. We went from a gold standard, to the current fiat currency, to the new, improved, and often misunderstood world of cryptocurrency. Crypto is a new world that is often seen as untested in the markets to be considered a stable currency. But with all the backing it has from billionaires and analysts alike, there’s no denying that cryptocurrency and its block chain technology is here to stay.
But a big concern that still exists with it today is: can it work like normal currency when it matters. People treat cryptocurrency more as an investment than anything else. That’s the nature of buying history when it comes to it. So can it be used as money. And if it can today, can it be transferred to another person through, let’s say, an inheritance? That’s a huge question these days. Can you leave your children and grandchildren assets in the form of cryptocurrency?
Here we will explore the processes and limitations of passing down your investment in crypto to the people you care most about.
How Does One Inherit Assets?
Before anything is distributed, first and foremost, it has to be reviewed by the probate court. There are many cases in which disputes over inheritance erupt over the lack of specifics when it comes to who gets what. But if everything is spelled out through the inheritance process, there should be absolutely no issues. People should be named by name and exact figures given. If this is done, there will be no grounds for any sort of strange money dispute after someone dies.
Write It Out In The Will
Cryptocurrency can be treated like any other asset in that it can be passed down. The nature of cryptocurrency though, is very different than real estate and cold, hard cash. Because of that, there are some provisions if you want to leave some behind in your will. First off, you should list the cryptocurrency in your will. Make it in no uncertain terms that this particular share or amount of coin is to be given to this specific person or persons. That’s step one.
Digital Wallet Info
Your next step is to leave information about your digital wallet. There has to be a folder with information about the purchase of the cryptocurrency. Because of that, there has to be posthumous access to the records. This is done by leaving wallet information with purchase logs and pertinent numbers in the will itself. This is to properly guide the person receiving the cryptocurrency as to where and how to access the assets.
Next, create a memorandum to your will including pin numbers and passwords to everything you want to give. This seems like a no-brainer, but it is actually the most crucial part of the process. Keep your passwords sealed and confidential between a lawyer and the individual receiving the information. This gives full access to the wallet and the means to receive their inheritance.
You can leave pretty much anything to someone after you pass. That’s the beauty of inheritance: the asset value is entirely up to the individuals in the transaction. And in this new age of modern exchange, why not leave cryptocurrency? They’re definitely transferable. And if done right, they can be the nest egg you’ve always wanted to give your family and/or friends.