Bitcoins are virtual assets stored in very secure files. Only the owner knows about them and what the access codes are. A person may die owning a store of real value which remains locked away in a cyber vault forever. If you own cryptocurrency and are preparing a will, then you need to know more about preparing bitcoins for bequest.
Preparing Bitcoins for Bequest Means Sharing Key Knowledge
You have to strike a balance between security and accessibility if you want someone to inherit your bitcoins. Stadicus writing in Mediium.Com suggests the best workaround is writing a special letter to loved ones.
This letter will not give all your secrets away, but it is the start of a trail towards finding them. You may also like to nominate a few cyber specialists who understand how the bitcoin world ticks.
Decide Where to Store Your Secret Bitcoin Information
Where you hide your secret information while preparing bitcoins for bequest depends on the estimated value of your virtual wealth. Using a safe deposit box adds a layer of protection.
However, if it is just a few hundred pounds you could write your access code on the underside of your desk drawer. You probably should anyway, in case you forget your logins while you are alive.
Next Create an Inventory of Your Virtual Wealth
List your cyber security assets so your heirs know what to look for. Do not store this information on an electronic device, because it could be hacked. Do not take a short cut by taking digital photographs either. You have to write everything out long hand.
The inventory of your virtual wealth must also include how to access your mobile wallet(s). Your executor will need to know which device to use, the name of the app, and where they will find your access code(s).
A Possible Format for a Letter to Loved Ones
Dear <Name>
I am preparing my will, and have realized I need to tell a few people about my cyber assets so they can pass to someone after I have gone. I have copied this letter to my solicitor <Name>, executor <Name> and also <Name and Name> whom you know.
Please be careful how you store this information, because it may be impossible to reverse the acts of a dishonest person into whose hands this information falls.
I have listed my bitcoin inventory on the enclosed separate piece of paper. Please store this in a different place from this letter. The app I use is called <name> and you will find it on <device>. You’ll find my log in details and access code <location>.
Thank you for helping me with this task. Sincerely <Name>
Final Steps in Ensuring the Security of this Information
Do not email this letter. Print out one copy only for each addressee. Hand it personally to them in a sealed envelope. Label the envelope “to be opened on the death of <name>” or along those lines.
Delete the file from your device as soon as you have printed the letters. Delete it from the recycle bin too. We are not saying this method of preparing bitcoins for bequest is perfect. However it is more positive than having your crypto assets lost in cyber space forever.
Further Reading
What Happens Next if Someone Dies on Holiday Abroad?
Preserve Your Property after Death with a Life Interest Trust
