How to incorporate Bitcoin into your legal inheritance wills

Cryptocurrency such as Bitcoin rose to fame despite the noise. Bitcoin-skeptics argue Bitcoin neither works as a medium of exchange, because of its high volatility, nor as a store of value. It doesn’t have any real-world use and is not stable against future purchasing power.

In the latest interview, Lopp shed light on the usage of Bitcoin as an inheritance and will.

Cryptocurrencies – such as Bitcoin – are becoming an increasingly common investment for many people. As a result, we’re starting to see a lot more people longing to include cryptocurrency in their Wills. But there still remains some confusion.

It is important that one specifically list their cryptocurrency in their Will. If not, it will fall into the ‘residue’ of one’s estate. (‘Residue’ is a catchall term for assets that are not specifically listed in your Will.)

Unlike traditional assets like shares or bank account, cryptocurrency does not leave an obvious paper trail.

Lopp opined:

 

Bitcoin doesn’t know anything about you, your identity, or your beneficiaries. All it knows is whether or not a sufficient number of signatures have been put on a transaction to spend funds from an address.

 

Therefore, it boils down to putting the keys in some sort of storage where only specific individuals can access them while alive. A certain subset of beneficiaries (designated) could access and to do this with Multisignature or multisig.

 

The reason we like this setup is that you can create say, a three of five multisig setup where you have a key on your phone that is always accessible by you. You then have three different hardware devices that you distribute around and then you have a key that is held offline by Casa.

Here’s what the prominent Bitcoin enthusiasts recommended during the interview. One should have a key that is accessible by either your state attorney or an executor.

But what if you die?

Here’s what Lopp said.

If you die the Casa key the friend or executor key and then the beneficiaries in the safety deposit box can all be accessed through fairly standard processes. And that’s what’s great about distributing all this information around is the level of robustness

Overall, one might see more utility coming in as time progresses. The prime cryptocurrency could see massive nation-wide adoption. Needless to say, it would following the path of El Salvador.

 

Do you have any suggestions? Let us know in the comment section below

 

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