How to access the key?
One of the primary things to consider during estate planning with crypto is to make sure that the executor knows which assets exactly you own, and how to access them. According to Forbes, getting access to these assets is the most difficult part of the process.
Why so?
Crypto investors are known to be quite careless about how they store digital keys and access codes. Yet, this information is a must to access their digital wallets. At the same time, if you start complicating things, you may lose the code without the possibility of retrieval. If one loses the key, a wallet full of tokens may stay unused – it’s impossible to hack.
How to ensure stable and easy access to digital wallets?
- Write down the cryptocurrency keys and heirs – you can even make it an official paper.
- Explain your hers what the kinds of assets stored, key locations, and access controls you’re utilizing for security purposes are.
- Find a safe, discreet place to store PINs, passwords, and multi-signature.
Is that legal?
Since digital assets present some real value, they can be passed to heirs without questions. However, you can create legal problems for people if you ignore a few aspects. Ideally, you should take care of both the technical side and the legal peculiarities. Without considering legal issues connected with estate planning, investors can make their heirs undergo endless lawsuits. At the same time, without crypto keys, a court order is impotent.
So how to protect heirs against legal problems? Make at least two copies of asset records and store them in separate spots. These lists should be updated once per week, especially if you are an active investor. Cryptocurrency estate planning experts say that those who trade infrequently should create and update these lists at least once a year. What should these lists include aside from access credentials? Say, you’ve purchased ENJ crypto: a file may include the amount and Enjin coin value – this way, your heir will know what was the worth of the investment in the past and compare it with the present.
If you want to make a long-term investment that won’t lose its value, consider buying stablecoins. For example, the True USD price won’t change through the time – it stays around $1.
Perspectives
From a legal standpoint, the majority of states have introduced laws allowing them to manage digital assets in the same way as traditional currencies. That might come in handy in certain situations. Say, you invested in QTUM, but QTUM price declined. You may feel the urge to sell assets immediately, and this can prevent heirs from dealing with problems and downfalls in the meantime.
While the law for estate planning and crypto is still being developed, there’s much you can do – invest and explore the market. Soon, lawyers will be more versed in cryptocurrencies, and courts will be inundated together with judges gaining knowledge. You should be aware of assets more than them.
Si (
No(
