A significant amount of cryptocurrency is lost due to investors dying without bequeathing access for their loved ones.
Cryptocurrency is not like your traditional bank account which is better regulated and has a clearer method for accessing funds upon production of the relevant estate documents.
Cryptocurrency investors often manage their own assets. Without proper planning and documents in place, cryptocurrency assets could be lost by families forever.
Frank Smith was a keen investor in various forms of cryptocurrency, including Bitcoin and Dogecoin. Through some smart investments Frank had amassed $500,000 worth of cryptocurrency. Frank unexpectedly died at the age of 38, without a Will in place. Frank had not told anyone about his cryptocurrency account information. Frank’s partner, siblings and parents are stressed and uncertain as to who should have access and entitlement to his cryptocurrency. Without any available private key or account information the $500,000 worth of cryptocurrency could be lost forever.
How you can protect your Cryptocurrency
To ensure your cryptocurrency is not lost upon your death you need to ensure you have a Will clearly distributing your assets to your loved ones. You should also ensure that you have a private, never to be destroyed, accompanying document (which is NOT a second Will) that details all keys and account passwords. This will assist your executor (who gathers your assets and pays your debts on death) to be able to access and distribute your cryptocurrency according to your Will.
Also, you should have an Enduring Power of Attorney to protect your cryptocurrency prior to death should you suffer a disability (e.g. brain injury, dementia). Both a Will and Enduring Power of Attorney are needed for full protection.
How we can help
At Long Saad Woodbridge Lawyers, our estate planning team wants to ensure that your hard-earned investments are not lost forever and that your loved ones are well looked after upon your death. We can assist you with drafting a Will and Enduring Power of Attorney to ensure your cryptocurrency is secure, protected and inherited in accordance with your wishes.