In recent years, cryptocurrency has become an increasingly popular asset class, with many people investing in various forms of digital currencies. While this type of investment can be advantageous, it also raises important questions about how and when to disclose your holdings to your loved ones. So why is it important to share information about your crypto assets with those closest to you?
To prevent inheritance issues
Sharing information about your digital assets and even listing a beneficiary can help to ensure that your loved ones are taken care of in the event of your untimely death. If you were to pass away suddenly without leaving any information about your crypto holdings, your loved ones may struggle to access your assets or even be unaware that they exist. This can lead to confusion and disputes over inheritance, which can be a painful and costly process for everyone involved.
How do you approach this issue?
Of course, there are many different ways to approach the topic of sharing information about your crypto assets with your loved ones, and the best approach will depend on your unique situation. However, here are a few tips to keep in mind:
- Start the conversation by explaining why you think it is essential to talk about your investments. Be clear about your motives and goals, and listen to your loved one’s concerns without getting defensive.
- Be transparent about the risks and potential rewards of investing in cryptocurrency. It is vital to ensure that your loved ones understand what they are getting into and be honest about the fact that this is a relatively new and volatile asset class.
Although cryptocurrency wallets don’t have transfer-on-death or payable-on-death options, you can ensure they remain part of the estate by disclosing the kinds of currency you own and where they are located. You should also consider including it in your will, along with other assets.