Between 2016 and 2022, the prices of numerous different cryptocurrencies have skyrocketed. For example, the price for perhaps the best-known cryptocurrency, Bitcoin, ranged from USD $378 in January 2016, to a high of $61,374 USD in October 2021, and to $43,198 USD in April 2022. Holding even just a single coin can amount to a substantial financial investment and asset, and holding multiple quickly could make the holder very wealthy.
Whilst unpleasant to think about, crypto holders should turn their mind to the question of what would happen to their holdings if you died? Does anyone know of your crypto holdings? Does anyone know how to access your crypto coin holdings? Would anyone be able to ‘collect’ the asset on behalf of your estate?
These are all questions that are imperative for crypto holders to consider – whilst deregulation offered by crypto is generally a positive trait, that same deregulation means that if the holding access details die with you, then the coin may be forever lost and inaccessible.
It is unfortunately beyond the scope of this article to address how your coins will be dealt with, because it will depend on a large number of different issues particular to your holdings, such as:
Whether you are actively trading in crypto, or simply holding as an asset;
What cryptocurrency/ies you hold;
Whether your cryptocurrency is held through an exchange or registry (such as Binance or Coinbase);
Whether your crypto holdings are accessible through ‘hot’ or ‘cold’ storage options.
What is important however, is getting legal advice that is familiar with the cryptocurrency platforms and able to navigate and advise you as to the legal implications of crypto ownership and your estate should you pass away. Ashton Estate Lawyers has experience in advising clients and addressing their crypto holdings as part of their estate planning. If you hold any cryptocurrencies, or are trading in cryptocurrencies and don’t have a will that properly addresses what would happen to your holdings if you died, then you’re placing your whole crypto portfolio at risk, and so it is important you get legal advice and ensure you have an estate plan that will address your holdings if you died. Contact Ashton Estate Lawyers for a free 15-minute telephone conversation today to discuss and see how we might assist you.
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