If you’re only starting with cryptocurrencies, it might be hard to see your crypto as anything worth talking to an estate attorney about. But that fun money might increase to a large percentage of your entire asset portfolio, often overnight(hopefully). Cryptocurrency accounts are not the same as regular investment accounts. They may be more prone to security vulnerabilities, and you cannot usually designate a beneficiary. It is critical to learn how to carefully keep your cryptocurrency and secure your bitcoin and assets so that you could convey your wishes to your loved ones, just as you would with any other precious asset. Cryptocurrency is traded and stored in wallets, but not the leather variety. Crypto wallets are usually digital and are controlled using the respective app or website of the exchange.
Where does your cryptocurrency end up if you die?
When coin holders die, an incredible quantity of digital assets are lost in the crypto world. According to a Chainalysis study published in 2017, around 25% of bitcoins cannot be recovered after the death of the owner.
Ask yourself a question, Does your family know your passwords to your accounts?
Most of us would say no and that’s why this conversation is extremely important.
While almost everyone is familiar with granting real assets, the procedure of distributing cryptocurrencies after death may not be as well-known. According to the findings of an Angus Reid research conducted in Canada, just one in every four persons has shared all of their account and password information with some other person in their family.
You probably own some bitcoin or another cryptocurrency in your wallet if you’re reading this. It’s also likely that you’ve never given any attention to what happens to these assets if something bad occurs to you.
Because bitcoin is decentralised, it is essential to secure your bitcoin wallets because survivors cannot simply contact a bank and inquire about their departed relative’s cryptocurrency account.
Planning a Digital Estate
While it may appear that simply keeping a list of account credentials in a safe place for someone else to use will solve the problem of digital assets but that’s not entirely true. The fact that they have the information to access the accounts does not necessarily mean that they have the legal authority to do so, especially when a website’s Terms of Service do not permit a transfer of ownership.
In reality, heirs may be judged guilty of even hacking in the legal space if they attempt to access a loved one’s internet accounts after he or she has died.
Revised Uniform Fiduciary Access to Digital Assets Act is a legal measure that establishes a clear hierarchy of instructions for how a person’s digital assets should be managed.
To begin, online service providers can establish an online tool that acts as a type of digital power of attorney to indicate who has authority and access to that specific site. Furthermore, RUFADAA establishes a clear legal framework for the specification of digital asset rights in traditional legal instruments.
But many of the times the paperwork like traditional legal instruments might get very overwhelming but not to worry, Clocr is here to help you through your digital estate planning.
Clocr- To secure your bitcoins and make sure they end up with your loved ones
Investing in Cryptocurrency is simple, but planning for its future and security can perplex investors. Digital Estate Planning is a process that can help Cryptocurrency holders to organise and update Digital Assets (email accounts, blogs, social media accounts, photo libraries, cloud storage accounts, etc.) so that after sudden demise or incapacitation of the Cryptocurrency account owner, the beneficiaries have one place to go and access, manage, or close digital accounts according to the wishes of the deceased person.
Clocr makes it simple to create and manage a Digital Estate Plan, allowing you to safeguard assets of personal and financial value to you and your family.
With Digital Estate Planning, which is focused on satisfying the security and legal requirements of Digital Assets, the process of prioritising, organising, and drafting out your desires for your NFTs or Cryptocurrencies becomes very simple and you go to a sound sleep knowing your family is protected.