Crypto Assets in Australia
A recent Australian report indicated that one in six Australians currently holds crypto assets and this is something that is starting to be reflected in some of the deceased Estates we are currently assisting families with.
As ‘crypto’ is growing in the community and some people have gained incredible wealth, we are seeing that many people are not thinking about how these assets would be accessed and managed following their death. As crypto is designed to be a secure online asset, there can be a significant number of codes and passwords required to access, sell and/or transfer them. So the question then arises…………. if you were to pass away, would your family know how to access your crypto?
In some recent instances we have assisted family members of deceased persons to locate, access and sell crypto to enable debts to be paid. In these cases, we have had a lot of difficulty getting through the various security features to enable this to occur. If you are someone who holds crypto, you will understand just how complex the process of setting up accounts and wallets is. As a result, you can imagine how overwhelming the process might be for your family who knows nothing about this new digital asset class.
Estate Planning for Crypto Assets
We believe that Estate planning for crypto assets is essential, particularly noting that the adoption of crypto is faster than the take up of using the internet was in 1997. Crypto seems set to become a bigger part of our lives. The questions that need to be addressed by you include:
- Do you hold your crypto on an exchange or is it held in a cold wallet or online wallet?
- If you have a cold wallet, where do you store your seed phrase and how secure is it?
- How many exchanges do you use?
- Where and how do you record your logins and passcodes for your exchanges and online wallet?
- Do you use 2 Factor Authentication and if so, is this done through an online 2FA service or through your email address?
- What devices do you have that can access your 2FA service or email address and how secure are they?
- Have you satisfied the identity requirements of your chosen exchange?
- Do you have a registered bank account attached to each exchange account?
- Does your family have any knowledge or understanding of your crypto assets?
- Who is going to manage or transfer and sell your crypto if you were to pass away?
Need Estate Planning? Consult with Us
If you would like to arrange an appointment to discuss your Will and how your crypto assets will be managed as part of your overall Estate Plan, please feel free to contact our Estate Planning Team at Caldwell Martin Cox. Remember, knowledge is power, and your Crypto knowledge needs to be passed on to those you want to benefit.