Use cryptocurrencies as a capital that is bequeathed, as an inheritance, It is something that is now being thought about a lotIs it possible to do so? Well, there's already a problem: Bitcoin holdings are personal (unless they're part of a company's assets). What happens to a person's cryptocurrency when they die? They are retained on the exchange unless there is a prior agreement between the token holder and another person to share the key.
The above makes Inheriting Bitcoins is, in principle, complicatedBut not only because of the technical obstacles and encryption. Also, the current legal framework doesn't cover cryptocurrencies. For example: if a person dies, there are regulations that allow determining who inherits fiat money in bank accounts. But, What should you do if the deceased owns cryptocurrency on an exchange or in a digital wallet? In these cases, the person who expires is the only person who knows the keys to release those digital currencies, and they take them with them when they die.
BUY BITCOINBitcoin inheritance depends on technical and legal aspects.
First of all, you need the express declaration on who will inherit the cryptocurrencies. Or that there is a regulation that indicates who the heirs are. Once this is clear, the next step is the technical mechanism. The proposed solution is that the Bitcoins are stored in a wallet that allows you to designate the beneficiaries of an inheritanceThat is, the online wallet allows heirs to use cryptocurrencies when a person dies. How is this achieved? It requires a combination of legal mechanisms and technical protocols.
These wallets work as follows: When a person dies, their heirs can "claim" their cryptocurrencies. The wallet is programmed to know who can exercise this claim. Then, a protocol is initiated by which those claiming the cryptocurrencies must prove that the owner of the cryptocurrency is truly deceased. This process takes time, as it requires showing death certificates and official institutions certifying the deathHowever, once the procedure is completed, the Bitcoins are sent to the heirs. This is a perfectly legal inheritance procedure!
PREPARE YOUR WALLETThe concept of “self-custody” of cryptocurrencies
What is cryptocurrency self-custody? It's a waiting period. When someone dies, their cryptocurrency isn't immediately released to their heirs. A period of time is needed to confirm that the owner of the digital currency has indeed died. The time elapsed while this verification is being carried out is equivalent to “self-custody”. A protection for digital currencies that remain unused, while the identity and amount of the cryptocurrency inheritance are determined.
Basically, what is Planning for a cryptocurrency inheritance is that self-custody process.Digital wallets that currently offer this option indicate that self-custody takes between 6 and 8 months. It requires the following aspects:
- El Digital wallet user indicates who can claim the Bitcoins in the event of your death. Potential heirs should have accounts in that same wallet.
- They are implemented multiple signatures in the crypto wallet, as well as the use of multiple keys. There is one key that is active and has a higher hierarchy. The secondary keys are held by the heirs, but these can only be used if the death of the crypto owner can be proven.
- In the event of the death of the owner of the cryptos, the Heirs send a claim for the cryptocurrencies. Then, the self-custody period begins, as the digital coins are assumed to be ownerless and are now held in the custody of the digital wallet.
- Potential heirs must demonstrate the death of the owner of the cryptocurrencies, request before legal bodies verify this death, while they must prove that they have the right to the inheritanceAlthough the wallet is informed in advance who can claim the inheritance, certificates identifying the heirs are still required.
- Once all the steps have been completed (this is done by filling out questionnaires, sending emails, etc.); then The wallet sends the cryptocurrency to the legal heirs, or activate secondary keys belonging to the heirs so that they take control of the wallets.
From all of the above a doubt arises: What happens if no one claims the Bitcoins? They remain trapped in the digital wallet. There is a legal loophole that still needs to be addressed, and it's possible that tokens held for a long time, with no evidence of their owners' movement, will be burned over time. However, this is something that is not yet fully clear.
TRADE WITH STABLECOINSPlanning an inheritance with cryptocurrency
These inheritances have as a detail the great cryptocurrency volatility. That is, they are inheritances that should be determined by the amount of Bitcoins (including Satoshi), not by the market value of BTC. However, it is a type of inheritance that should be considered, since many people tend to buy cryptocurrencies these days.
To plan these inheritances it is necessary to choose a digital wallet that has the inheritance process. Also, tentative heirs should be listed among those eligible to claim the cryptocurrencies. Another issue to consider is the time to be able to make the claim: Should it be done immediately? Is there a deadline for filing an inheritance claim? .. So far, it's established that inheritance can be requested at any time; however, the time limit for self-custody is limited. That is, if the death of the token holder isn't proven within a predetermined time, the custody procedure is voided, and the cryptocurrencies are retained.
Certificate
Course on Taxation of Bitcoin and other Cryptocurrencies in Spain (only in Spanish)
Medium levelLearn from experts in the Tax area all the details about the taxation of cryptocurrencies in Spain.
Is it possible to prevent a cryptocurrency inheritance from devaluing?
It is impossible to avoid the collapse of a cryptocurrency. To avoid this volatility, it is recommended use stablecoins, that is, digital currencies pegged to the price of a strong fiat currency (dollar or euro). However, it's not unreasonable to think about using BTC to inherit. After all, This currency has always ended up on the rise, with ups and downs in its price, but over time its price always increases.
In fact, inheriting Bitcoins implies a wealth that can grow. It can even be more effective than an inheritance in traditional cash or real estate. BTC has proven to always increase in value, so It would not be strange if many inheritances were, in the future, planned with this cryptocurrency..
