Just like any other asset such as a house, a car or a bank account full of cash – something has to happen to your crypto wallet when you die. A huge amount of cryptocurrency will have already been lost forever due to people not planning ahead.
Eugene Abungana, expert at Dappgambl explains what happens to your crypto wallet when you die, and how to prepare ahead.
What Happens To Your Crypto Wallet When You Die
It’s important to plan for what will happen to your crypto wallet ahead of time as, given that it is a digital currency, if you pass away and no one knows your intricate password or that you even had crypto at all, your wallet could be locked away forever and remain inaccessible. There are some things you can do now that will help your loved ones if anything happens:
Name a beneficiary in your estate plan
When you die, crypto has to go through probate just like any other asset before it can go to your loved ones or chosen beneficiaries. At the moment Having an up to date estate plan containing the name of the beneficiary of your wallet is a good step. Keep this plan up to date.
Safely document where your crypto is stored and how to access it
There is of course a balance between ensuring the right person knows you have a crypto wallet, but also keeping it secure. If you don’t tell anyone you have a crypto wallet, it will never be found - which is a good thing most of the time, apart from on the occasion of your death.
Ensure that someone you really trust knows where your crypto is stored, the private and public keys for your wallet, and any other useful information such as a recovery phrase. Just like with cash, your crypto passwords ending up in the wrong hands can lead to theft, so be very cautious when choosing who to tell.
Keep in mind that the value of cryptocurrency can be volatile
The value of cryptocurrency can be highly volatile and may have changed significantly by the time someone passes away. It is important to ensure that the value of the cryptocurrency is accurately reflected in your estate in order to ensure fair distribution among beneficiaries.
We at dappGambl are a group of blockchain and casino enthusiasts that consider crypto casinos and other gambling dApps to be the future of online gambling.