28 July 2021
We come into this world with nothing and we leave with the world with nothing. Ageing is destined and inevitable, and so all of us makes an effort to work hard to live a smooth life and to leave something for the family when we are gone. A person invests or trades in things to gain profits and for the most obvious reason to benefit from the investments for oneself and for the family. In the traditional financial space, one can inherit their benefits to its family but what about cryptocurrency? There are many questions that arise while inheriting the trade made with bitcoin or any other cryptocurrency to one’s family.
In the crypto space, there are certain ways and platform that can help you inherit your investments to your family and it is important to plan now than later.
As per Chainalysis, approximately 25% of bitcoin has been stated to be lost forever, assuming death accounting to have a larger portion in the count.
Nolan Bauerle, an author at CoinDesk had stated in an interview with Bloomberg, “if someone who owns Bitcoin, or another cryptocurrency passes away without sharing their account information, those coins are simply abandoned.”
In this blog, we are going to discuss how one can inherit its bitcoin to its family:
The first key aspect to inherit your cryptocurrency is to leave your assets passwords and keys to the trusting member of your family. Maintaining a handbook wherein you input all the necessary information about your investments, trades, passwords and keys is the important role factor.
If you do not have to share with them right away, you could add it in your will or a safe deposit and authorise the person with the mentioning in your will.
The steps you can perceive while planning to inherit your assets are:
- Noting your current holdings
- Analysing your asses into tiers
- Strategize each tier with a plan
- Determining the closed ones that you would want to inherit on your tier
- The other factors that you can consider including are storing backups, informing the closed ones, mention in the will or safe deposit and so forth.
The platforms that can help serve inheritance of your crypto assets are:
- BitBolt: With this platform, you can pass the inheritance your crypto assets by adding nominee and its information.
- TrustVerse: With this platform, you need to choose the inheritance design which even consists of passing the inheritance to one beneficiary or multiple beneficiaries. The beneficiary(s) would need to submit the death certificate of the individual to withdraw the assets digital assets.
- Safe Haven: With this platform, you are provided with inheritance solutions on blockchain technology.
In many countries, there are inheritance taxes, thus countries like the U.S. and the U.K. that treats crypto as property would have no exception to the tax.
Robin Singh, the founder of Koinly had stated to the https://news.bitcoin.com/, “Crypto is basically property, so the inheritance tax applies but the tax-free limit for it is so high that very few people are ever going to be hit by it. It’s been dubbed the ‘Paris Hilton tax’ for a reason.”
It is important for the crypto enthusiasts to safeguard its assets considering taking all proactive measures to pass its family the inheritance. Planning for the worst only hopes in the best interest for your closed ones when the unfortunate happens.