The admiration for bitcoin is next level, rising even more. The market capital of this digital currency is soaring because many investors want to engage in bitcoin. There is no regulation of government in the crypto world. But even if bitcoin is a new investment for investors, they must take it as a long-term investment. Do you ever wonder where your money goes when you buy Bitcoin? If that’s the case, here’s where the money goes when you accept Bitcoin.
It includes getting ready for what will happen to your digital investment when you die. All bitcoin transfers take place independently of this technology. Since they are decentralized, you must mention them in your estate plan. You must select a person that you trust to execute this plan. Or it might be impossible for your loved ones to access your bitcoin when you are no more.
Why it’s essential to include bitcoin in an estate plan?
Just like your real estate and other valuable possessions, bitcoin is also a valuable asset. It means this asset needs to get through the probate before transferring the legally to your loved ones after your passing. By having the estate plan, the whole procedure will become easier for every person that is involved. Also, it’s essential to consider that even a reputed bitcoin exchange doesn’t support the process of adding beneficiaries for your bitcoins like payable to death account.
Moreover, bitcoin is not centralized; it has some high-level safety concerns not issued by government authorities. Even though bitcoin is digital, you must treat this digital currency like a tangible asset with immense value, like gold. Any person who gets access to your bitcoin can practice it for any purpose. So if you die without allotting access to anyone about your bitcoin keys, then they will be lost forever. Therefore, you must plan for your bitcoin assets and have clear instructions regarding the people you want to transfer them to.
Best ways to pass your bitcoin assets!
Name a beneficiary in the estate plan!
A beneficiary is an individual from whom you wish to inherit your assets after death. It’s essential to ensure that you are listing all your bitcoin assets in this estate plan. It is also essential to mention the name of a separate executor for protecting and preserving your bitcoins. To make this process more manageable, you must consider nominating an executor who knows about bitcoin. Since the laws keep changing, you should revisit your estate plan timely to ensure that your executor has all the required equipment to access your bitcoin investment and facilitate the transfer to the selected beneficiary without delay and unrequired cost.
Document where your bitcoins are stored!
It’s essential to mention all the details regarding where you store bitcoin. Your executor and beneficiary can only retrieve your bitcoin depending on how they can access it. If you keep bitcoin in a custodial account on any exchange, then your executor can contact them directly to facilitate the bitcoin transfer. For starting this procedure, they will require your death certificate, probate documents, and a letter with the sign of the executor telling what they have to do with the bitcoin in the mentioned account.
But if you keep bitcoin in a cold storage wallet, post-death access to your coins will depend on how you document your assets. Therefore, it’s essential to document the location of your bitcoin wallet. Moreover, it would help if you also mention your keys for every wallet. That information is also important to mention if there is any other pin code or seed recovery phrase. All these things are very much necessary in accessing your bitcoin wallet. It is your choice where you store this vital information. But you might consider keeping it in the safe deposit box. Do not forget to list the info about this safe deposit box in your estate plan. You can also consider entrusting any attorney or family member for this purpose.
The bitcoin world is evolving speedily, so having an estate plan is essential for protecting your bitcoin funds after you pass away. Bitcoin is decentralized, so the responsibility is yours to keep them mentioned in your estate plan. You should give clear instructions to your executor and beneficiaries even when you die.
