Crypto Assets Legacy: Strategies and Methods for Secure Inheritance

Since the emergence of Bitcoin in 2009, virtual currencies have undergone significant development, evolving from niche speculative projects to popular investment choices. More and more investors are considering including virtual currencies in their asset allocation. However, the decentralized and anonymous nature of virtual currencies may pose obstacles in matters of inheritance.

Pre-life Preparations: The Importance of Wallets and Private Keys

Inherit Crypto Assets such as these virtual assets, the key is to make arrangements while alive. In the decentralized virtual currency world, wallets and their private keys are the only proof of identity. Therefore, properly delivering the wallet and private keys to the heirs is equivalent to completing the asset inheritance.

Mainstream wallet types include PC wallets, browser extension wallets, mobile wallets, and hardware wallets. For the first three types of software wallets, it is necessary to clearly inform the heirs of the specific type of wallet; while hardware wallets should be properly stored to ensure that the device itself can be completely handed over to the heirs.

The private key is equivalent to a combination of the username and password for the wallet. In actual use, the private key usually appears in the form of a mnemonic phrase. When passing it on to heirs, it is essential to ensure the accuracy of the mnemonic phrase, and if a password is set, the usage method must also be conveyed.

Secure Transfer Method

1. Paper records: Record the wallet type (or hardware wallet location), mnemonic phrase, and other information on paper and store it in a safe. You can write the safe password in your will or keep the paper record in a bank safe deposit box to ensure that heirs can only access it after inheriting the estate.

2. Hardware Storage: Save the required information for inheritance on a USB or external hard drive, and set up password protection. Keep the hardware and password stored separately to ensure that the heir can only access the information after the inheritance is settled.

3. Disable Switch Application: Utilizing a blockchain-based disenable switch application. Users can upload encrypted inheritance information, set a decryption time, and designate an heir. Before the decryption time arrives, users can choose to extend the storage time or terminate the service.

Inheritance of Centralized Platform Accounts

For cases where virtual assets are primarily managed through centralized exchanges, heirs only need to know the account name to inherit assets through a platform appeal. Taking a well-known trading platform as an example, the inheritance process typically requires the following materials:

1. ID documents of the heir and the deceased.
2. Death certificate of the deceased
3. Legal documents proving inheritance rights (such as wills, inheritance notarization certificates, etc.)

These materials need to be notarized or certified by a lawyer, along with an English translation. If there is no will, an inheritance notarization can be obtained, or a valid judgment can be obtained through inheritance dispute litigation.

Recently, some trading platforms have also launched the "Emergency Contact and Heir" feature. Users can set an emergency contact on the platform, and when the account has been inactive for a long time, the platform will automatically notify the contact, who has the right to apply for inheritance.

Professional Advice

As a high-threshold asset, investors' families may know very little about virtual currency. To avoid heirs missing out on inheritance opportunities due to lack of understanding, or encountering difficulties during the process, effective communication within the family is crucial.

It is recommended to hold regular family meetings to explain to family members the operating principles, value, and management methods of virtual currencies. This is not only to leave behind a virtual asset but also to pass on investment concepts and management skills, ensuring that the virtual assets can be smoothly and securely inherited.