Estate planning is a crucial part of building generational wealth and creating a legacy. While it takes careful consideration, time, communication and a long-term vision, it’s a very common practice and there are numerous services and advisors who can help.
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Yet when it comes to passing down crypto to heirs, the planning might be more difficult due to the unique characteristics of the assets. As a result, some crypto owners consider looking at specialized services that can address their inherent properties.
A new survey by digital inheritance service DGLegacy found that 89% of crypto owners are very worried that, if something happens to them, their families won’t be able to identify and access their crypto currencies. The main reason cited is that, while crypto owners pay special attention to protecting their crypto wallets, it’s almost impossible for their loved ones to access the wallets if something happens to the owners.
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Ensure Access to Crypto Wallets
Co-founder of DGLegacy Ana Mineva explained that legacy planning for cryptocurrencies ensures that digital assets are not forever lost or abandoned due to the inability to access wallets.
Mineva said there are a few steps asset holders should take to achieve this.
The first is to catalog digital assets with digital legacy planning services because they enable owners to securely catalog information about them, according to Mineva. She added that the data is encrypted with a master key, ensuring its confidentiality and protection. Then you must designate beneficiaries for the crypto.
“In addition, digital legacy planning services also assist individuals who struggle to keep track of their own digital assets, providing much-needed support and organization,” she said.
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You also must decide how to share the information and access details about cryptocurrencies.
According to Mineva, solely relying on conventional estate planning can’t help much in crypto inheritance, as plans are rarely updated and can’t protect your assets in…
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