What Happens to Your Crypto/Bitcoin When You Die?
You will die. Make sure your crypto doesn’t die with you!
I was in the bank last month, opening my savings account. Although I am in my twenties, the bank personnel asked me where will my savings go in case of my death.
I was surprised by that question. I never had to consider that until then, but I guess people die. So will I, and so will you. After the initial awkward silence, I made out the contract in the way that all of my savings will be transferred to my partner.
I didn’t think much about it afterward, and I forgot about it, but a couple of days back, when I was explaining to my girlfriend about the DeFi and the MetaMask wallet, I quickly realized that, in case I die, she will never be able to access that money.
If you just think about it — how much of the 21 million Bitcoin out there is gone forever? Due to early adopters who passed away, an undetermined number of Bitcoin, is likely already lost forever. I would say hundreds of thousands if not even millions are already lost! From some sources, that number is as high as 3 million BTC, which is lost forever. Only because you forgot your keys, or well, you die, and no one can access them anymore.
So, on one side it is smart to let someone know how to access your coins, but on the other hand, can you trust someone on how to access your crypto?
FACTS
In today’s digital age, you will be remembered for your digital legacies, including your cryptocurrency wallets, Facebook account, and cloud-backed photo albums.
You should have a strategy in place to make it easier for your loved ones to access your crypto funds if you pass away, whether you only have $500 in your crypto exchange wallet or cold storage.
WHAT TO DO
Do you have a large amount of money in your online exchange account?
Although, keeping money on exchanges is risky (I recommend moving it into cold storage), you can set up a plan with the exchange. Some of them already offer the option of transferring your funds after your death. You need to explore that!
If you hold a majority in a wallet that can only be accessed through your seed phrase, be sure to tell someone you (deeply) trust where you keep that seed phrase. If you don’t trust people when it comes to money, put it in a safe in your bank, which can be accessed only by you or after your death.
THE IMPORTANCE OF YOUR WILL
There is nothing else in this world that brings so much dispute between family members as money. Money can ruin good relationships, especially if those sums are big amounts and especially if people are in serious need of it.
So just like everything else you own should be listed in your will, so should your crypto. Although the laws behind it are not defined yet, when it comes to digital wealth, one thing is certain. If you declare, that that money belongs to one person, it belongs to that person.
Be sure to let your crypto exchange know that, otherwise anyone with your death certificate and some lies can access your funds. Although — they would need to return the money (because they need to go through KYC to even be able to do that), you can avoid further legal complications, by informing all parties before you are dead.
NON-CRYPTO PEOPLE ARE CLUELESS!
Don’t assume that when they inherit your crypto assets, your family members will know how to convert them back into dollars. Tell them how cryptocurrency exchanges operate and assist them in deciding regarding your digital wealth. Best case — teach them how to invest them further.
LONG LIVE CRYPTO.
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