Cryptocurrency still has a very long way to go before it can truly be considered mainstream. However, its increased popularity has caused many questions to arise. For example, what happens to a person’s cryptocurrency when he or she dies? This is a very relevant topic moving forward. Countries like England have already started to levy a very big tax when a person wants to give friends and relatives cryptocurrency when he or she dies. There is no doubt that preparations should be made by all cryptocurrency owners so that things go smoothly after that person’s death.
First of all, it would be a good idea to store the private key to your cryptocurrency in a safe and secure place that can be accessed by your relatives when you die. A paper or hardware wallet are both good choices. Alternately, there are some people who are including the password or access instructions for their cryptocurrency private key in their Will. There are also cryptocurrency platforms that can be programmed with certain instructions. For example, if a specific cryptocurrency account does not have any activity for a period of four months, all of the money it contains will be automatically transferred to predetermined accounts. This will ensure that a person’s descendants will get the cryptocurrency even if they do not have the private key.
Cryptocurrency exchanges have been very slow to make provisions for inheritance. Therefore, it is up to Bitcoin owners to be proactive and ensure that their beneficiaries will be able to have easy access to the cryptocurrency at any time after the owner dies. After all, this money might be needed right away to pay for funeral costs of the deceased person. The money provided by the Bitcoin might also be needed for basic expenses if the deceased person was the breadwinner in the family.
Some people are storing the private keys to their Bitcoins in a bank safety deposit box. This is an easy solution because family members can easily gain access to the contents of the box when the person dies. However, it is important for people to mention the contents of the safety deposit box in their Will. This will prevent the need for getting a court order to gain access to the box. It would also be wise to tell the people you intend to bequeath your Bitcoins to in advance. Let them know that this money exists so they are prepared when you die.