Those who have Cryptocurrency or are considering entering this space would be aware that Crypto wallets store users’ public and private keys while providing an easy-to-use interface to manage crypto balances. They also support cryptocurrency transfers through the blockchain. Some wallets even allow users to perform certain actions with their crypto assets, such as buying and selling.
It is important to remember that cryptocurrency transactions do not represent a ‘sending’ of crypto tokens from a person’s mobile phone to someone else’s mobile phone. When sending tokens, a user’s private key signs the transaction and broadcasts it to what is called the blockchain network. The network then includes the transaction to reflect the updated balance in both the sender’s and recipient’s address.
A crypto wallet doesn’t technically hold a user’s coins. Instead, it holds the key to their coins, which are stored on public blockchain networks.
In order to perform various transactions, a user needs to verify their wallet address via a private key that comes in a set of specific codes. The speed and security often depend on the kind of wallet a user has.
So how does this relate to my Will and (when I die) my Estate ?
The Executor of your Will must be able to deal with your digital assets (which include cryptocurrency).
The following straightforward steps can make sure this happens?
Leave detailed instructions for the access of your Crypto Wallet;
Instructions should be written by you at the time of making your Will and sealed by you before giving to your Solicitor to be placed into safe custody with your Will;
We suggest the instructions include:
Private & Public Key; and
Form of the Wallet and its location.
Instructions for disposition of the asset are unnecessary. It is just how to access the asset for disposition.
Comments