21st Jun 2021

What Happens to Cryptocurrency When We Die?

Passing on is something that will happen to all of us, yet leaving an estate for our heirs has become far more complicated in the modern age. More and more investors are getting into the real estate market, holding cryptocurrency assets, and diversifying their portfolios with a variety of additional asset classes that can’t be easily quantified or spread evenly amongst those who will survive us over the long run.

Cryptocurrencies are a particularly important asset class in today’s world. As an investment commodity, crypto tokens offer a long-running hedge against stocks and other traded assets while behaving in a similar manner on their own merit. Crypto assets are an exciting new addition to the framework of personal finance, but they pose a unique problem for estate planners.

Crypto assets are secure, sometimes too secure.

The crux of the issue lies in the way that we protect cryptocurrencies. Unlike a physical dollar bill, these assets can’t be stolen out of a wallet in the traditional way. As well, it’s possible to misplace the unique identifier information that grants access to the token. In a way, they simply don’t exist without the key.

This means that estate planners who own cryptocurrency will need to consult with legal minds as well as crypto planning sites and services in order to understand the measures that must be put in place in order to facilitate the transfer of these digital currency assets from you to your beneficiaries. Sites like CryptoVantage (see more at: cryptovantage.com) offer investors who have bought into the digital revolution the advice and resources they need to make smart decisions about their holdings and future in the market.

Unlike stock holdings, the transfer of cryptocurrency assets from one holder to another can’t be managed by a broker. Just like the exchange of fiat currencies (the U.S. Dollar, for instance), you must hand Bitcoin (BTC), Ethereum (ETH), or Litecoin (LTC) holdings over yourself or leave instructions for the appropriate access to a trusted executor who can facilitate the payments from your digital wallet.

Crypto assets can assist with funeral arrangements.

Another great option for those holding cryptocurrency assets in their portfolios is in the coverage of funeral costs and other related expenses. Not only are crypto holdings a great investment option for growth traders, but they can also be leveraged directly as currency for making purchases.

Funding a cremation service, wake, or burial directly with Ethereum or other crypto coins that you’ve amassed can help your loved ones make sense of their grief without having to finance their final goodbyes on their own, adding substantially to the stress of this process. Cremation is a great option for those seeking a dignified send-off but wanting to avoid the costly services provided by a gravestone and other related burial procedures. A cremation service is a fantastic way to celebrate the life of a loved one, and after the service has concluded, allows your family to keep a piece of you close by.

Many people (or families) choose an urn for the ashes that will become a constant on the fireplace or elsewhere in the home. With the help of crypto assets that have appreciated significantly in value throughout your ownership, the costs associated with these needs—or a trip to your favorite place to spread them—can be taken care of.

Cryptocurrency doesn’t disappear when we die, but because of the unique nature of these tokens, they must be cared for in a particularly diligent manner. Make sure to leverage your holdings in whatever way you see fit while providing careful instructions so that your beneficiaries can enjoy the use of your Coinbase or other crypto holdings.