November 11, 2022

It’s expected that $75 billion worth of bitcoin alone could be forever lost for multiple reasons, including the death of the original owner. The primary purpose for many people investing in Bitcoin is privacy, and this may lead you to think that it’s not worth sharing your private keys with friends or family members. Many Bitcoin investors who are primarily motivated by privacy plan to keep their keys a secret.

But if you have significant assets invested in Bitcoin, you may block your loved ones from receiving these assets if and when you suddenly pass away. One such example included a US investor Matthew Mellon, who passed away in 2018 with a cryptocurrency fortune valued at $500 million. There is a way to balance both keeping this asset information safe as well as allowing it to be used for your legacy.

There are several different programs out there that can help you, such as multi-signature wallets and software services that will help ensure that your loved ones receive access to your cryptocurrency if and only if you have passed away and wish for them to have it. If you want someone to receive these assets, you need a proactive plan. Likewise, if you think that someone may gift you crypto during their life or as part of their estate plan, you need support with that as well.

If you know that someone in your family has crypto assets and may be planning to pass them to you, you might want to discuss how this fits into your existing financial strategy. A big inheritance could alter your own approach to savings, too.

If you have questions about how to proceed with this planning opportunity, speak with a qualified financial professional about how best to handle digital assets.