With the value of crypto coins on the rise, the wealth accumulated by those investing in the coins is, without doubt, a fortune. But do you know that your crypto fortune is likely to be beneficial to you and you only? Well, not declaring cryptos as part of your investments, as it has happened with other investments, will make your investments in crypto to be inaccessible when you are gone.
According to a wealth coach, Barry Glassman, “billions of dollars’ worth of wealth might simply disappear unless people update their estate planning to include their crypto assets.”
Three things that those investing in crypto should document are: an acknowledgement that they own digital money, where they purchased it, and how those entitled to inherit it will access it. You see, the greatest problem or advantage of cryptocurrencies is that someone else will only know of your investment only when you explicitly make it known to them. But think of the day you will breathe your last breath which, in most cases, is unexpected?
Since no one knew you had any digital assets, they remain unknown and lost in the privacy. Unlike the normal banking process where it’s possible to know whether a person had a bank account or not, with cryptos it’s impossible by any means to know those details. Even guessing passwords to crypto wallets is impossible thus making it difficult for heirs to log in to your account even if they knew you owned some cryptos.
But there’s a way to avoid all the above. And it’s simple. You need to come up with solid measures to ensure that your crypto fortune benefits heirs.
Part of the measures, as stated by Barry, are:
“Keeping both a written version of your passcode in that safety deposit box, as well as a portable electronic version in a “digital wallet.” That is essentially a smart thumb drive that securely stores important account information offline where hackers can’t access it. These devices allow you to create a PIN number and string of recovery keywords that you can even use on a separate device in case of a hardware malfunction.”
Failure to provide such information, when you still can, will leave heirs not to enjoy the benefits of your crypto investment.
Since emergencies like death are inevitable, do you think crypto investors should document their crypto fortunes plus all the details pertaining to the investments?
Let us know your thoughts in the comments section below.