If you are looking to invest in crypto or are already invested in crypto, let's look at how you can pass it down to your loved ones. Here are 5 Ways To Pass Down Crypto Wealth.
1.) Safety Deposit Box - Head over to a bank with the intended recipient of your crypto and create a Joint Ownership Safety Deposit Box and be sure that the contract states JTWROS, or Joint Tenants with a Right of Survivorship. Once completed, simply place your private keys and/or cold storage wallet inside with instructions on how to access your crypto. (Please note that each state or jurisdiction manages ownership of the contents of the safety deposit box differently.)
2.) Crypto Deadman Switch - This solution is a bit more advanced and decentralized. It can be executed via a Smart Contract or a service such as Sarcophagus. Essentially, it's a mechanism that has a verification process that needs to be conducted, which acts as proof of life, if the verification is not completed within a certain time frame your cryptocurrency will be automatically transferred to a predetermined crypto address that you select.
3.) Estate Planning Attorney - This is by far the most legally sound option. Work directly with an attorney that can advise on laws, setting up a trust and/or creating legal docs such as a last will and testament that has all your crypto assets listed and specific instructions on how to access your crypto after your death or incapacitation. For a decentralized alternative see Safe Haven's Inherti.com
4.) Multi-Signature Wallet - This is a unique wallet in that it allows for multiple signatures to access your stored crypto assets. For example, your wallet has two private keys, or two signers, that can access the crypto assets. It can be configured in a way that requires only one of the two signatures to access the crypto; thereby allowing another person to access it after your death without involving a third party.
5.) Designated Beneficiary Feature - This is the rarest to find but is a wonderfully simple solution that I hope will be more common in the future on both wallets and exchanges. As of writing this post, I was able to find only one crypto exchange that allows you to assign a designated beneficiary to your crypto assets, Crypto Exchange & Wealth Management Platform, Abra.
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