Inheritance Planning for Cryptocurrencies: 3 Steps in 3 Minutes

[Emma Lee]

There are three things that your heirs MUST know about in order to access these tokens and keep them safe: exchanges, wallets, and devices.
Exchanges
Most exchanges are centralized and hold funds for you in an account to allow you to trade between local currency and cryptocurrency.
Wallets
Wallets can be a bit trickier because often it’s difficult for people to know if they are using a “hosted wallet,” like an exchange where you don’t actually own your keys, or a non-hosted wallet, where you do.
Devices
What do your heirs need to know? They will need to know what devices you use to access your wallet accounts. Why? Because these devices probably have copies of your keys stored on them and it’s important that your heirs know not to throw away, donate, gift, or destroy these devices until the funds have been successfully moved to the estate or moved to your heirs.
Bonus
Your heirs will probably need someone to help them access your cryptocurrencies and asset tokens. If you can easily think of people you trust to help, then list them. I prefer having at least two ‘helpers’ designated, from different organizations or different sides of the family.

 

[BitFit]

Write up complete and easy to read instructions. Place copies in your will and also in a bank safe deposit box.

Teach your family how to access crypto accounts and wallets. Make sure they have all passwords and private keys stored somewhere very safe. Again safe deposit box and in will.

Crypto planning isn’t different than estate planning with fiat, stocks, real estate or bank accounts. It just requires more steps and education of the heirs before death since you can’t retrieve coins in Trezor with a death certificate.