What is cryptocurrency?
Cryptocurrency is a digital currency that operates on decentralised systems, such as blockchain, allowing secure online payments and transfers without relying on traditional financial institutions. Popular cryptocurrencies include Bitcoin, Ethereum, and Binance Coin.
As digital currencies become more mainstream, many people are considering how to include them in their Wills to ensure their value can be passed on to loved ones.
How does cryptocurrency work, and how is it inherited?
Cryptocurrencies are stored in digital wallets, which have public and private keys. The public key acts like an account number, enabling transactions, while the private key grants access to the wallet’s contents. Without the private key, the assets cannot be accessed.
This presents a unique challenge when inheriting cryptocurrency, as there is no central authority (like a bank) to facilitate access after the owner’s death.
Steps to safely leave cryptocurrency in your Will
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List your cryptocurrency as an asset
Include your cryptocurrency holdings in your Will to ensure they are legally recognised as part of your estate. Without this, your executors and beneficiaries may not even know the assets exist. -
Provide clear instructions for access
While it’s vital to include details about your cryptocurrency, never include sensitive information like private keys directly in your Will. Instead:- Write instructions on how and where the private keys or wallet access details are stored.
- Store the keys securely in a safe or bank vault.
- Use a trusted third-party service, such as a multi-signature wallet or cryptocurrency bank, to manage access securely.
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Educate your beneficiaries
Your beneficiaries may not be familiar with cryptocurrency or how to access it. Leave a guide or appoint a knowledgeable executor to help them navigate the process.
Why is it important to include cryptocurrency in your Will?
Cryptocurrency is considered an asset in the UK and is subject to inheritance laws. Without clear instructions in your Will:
- Your cryptocurrency may go unclaimed or be lost forever.
- Executors may face difficulties locating and accessing wallets.
- Your estate may be subject to delays, impacting your beneficiaries.
By including cryptocurrency in your Will, you ensure your loved ones can inherit these assets smoothly and securely.
Can you leave NFTs in your Will?
Yes! Non-fungible tokens (NFTs), stored in crypto wallets, can also be left in your Will. The process for transferring NFTs is similar to that for cryptocurrencies, requiring clear instructions and secure storage of private key information.
How Wills.services can help
At Wills.services, we make it easy to include digital assets like cryptocurrency in your Will. Here’s how:
- Simple process - Our platform allows you to specify who Will inherit your cryptocurrency and other digital assets.
- Secure storage guidance - We provide tips on how to safely store and share private key information with your executors and beneficiaries.
- Personalised support - Our team is available to help with any questions about including cryptocurrencies or NFTs in your Will.
Take control of your digital legacy today with Wills.services. Create your Will online and ensure that all your assets, including cryptocurrency, are passed on securely and efficiently.
