Dealing with Cryptocurrency in your Will
Monday, July 16, 2018
The unique, secretive nature of cryptocurrency ownership poses its own issues and considerations when drafting a will. Cryptocurrency is decentralised and, importantly, does not require the customer to provide personal details when making transactions. As a result, cryptocurrency ownership is impossible for outsiders to trace, potentially making ownership difficult to prove upon death, and consequently allowing the possibility of the assets being lost.
It is important to provide specifically in your will for cryptocurrency. You could consider creating a separate, private document for the executor (or enduring power of attorney) that ensures your cryptocurrency assets will not be lost during the administration of your will. This private document should contain a history of your ownership, including all transfer details in order to evidence ownership. The separate document should also contain instructions as to how to access your digital assets, as well as details of the relevant trading platform and the contact details of your cryptocurrency manager/consultant.
If the cryptocurrency is to be held in a testamentary trust then consider instructing the executor on how you would like the asset to be managed. These provisions, made in a private document for the executor of your will, can ensure that your cryptocurrency assets will be dealt with according to your wishes after your death, but without compromising the assets’ security within your lifetime.