Leaving cryptocurrency to your loved ones requires more planning and effort than traditional assets. A way to do this is to provide access with a simplified process for your beneficiaries and ensure that they inherit your coins.
Here is the list of things you need to do.
Take Stock
You can only give access to what you are 100% sure you own. So the first step is to aggregate and track your Crypto assets so that nothing falls within the cracks. You can do this with a special notebook dedicated to this or use digital tools like Cova, which helps you track all your assets (across digital and traditional classes on a simple dashboard and makes it easy to manage the entire information.
Update Your Will or Trust Documents With Your Crypto assets
The next step is to update your estate planning documents with your crypto and NFT information. Clearly describe your cryptocurrency and where to find it in your will; give as many details as possible to make it easy for your loved ones to navigate but keep your passwords, passkeys, passphrases, secrets, and any security access credentials out. Do not add login or access credentials to any document that will be read or viewed by third parties.
Create a Separate Document/Meme For Passwords
Create a separate memo/record of access credentials, and keep it updated as often as needed without going through the formalities of changing or updating your will. The memo should include the following:
- The type of digital wallet(s) you have. Give full details
- Any device, computer, smartphone, cold storage you've stored your cryptocurrency.
- Website links for any needed online exchanges or password managers
- All login and password information for these wallets, accounts, and websites.
- Any other information that can guide your beneficiaries.
It is important to ensure your loved ones know that you have a cryptocurrency and that they are equipped with all the information needed to access it after you pass away or in the event of an eventuality. On a final note, engage the service estate planning professional while ensuring your passwords and logins are kept secret
