The reason you’re reading this is that you own Bitcoins. Maybe this article has prompted you to think about what would happen to your Bitcoins after you die. Essentially, you require an inheritance plan that incorporates your digital assets.
Securing Bitcoin and other digital assets is fascinating but also challenging. Owning Bitcoins requires you to control private keys for accessing them. Most crypto experts recommend hardware wallets for storing Bitcoin. Regardless of the crypto wallet you use, you can’t delegate secrets like password, seed phrase, and backup. Anybody with access to these secrets can control your Bitcoins.
Consequently, you may consider splitting these secretes, burying them somewhere, or making them less accessible. However, will your heirs access these secrets upon your death, or will your Bitcoins die with you?
Your Heirs Should Access Your Bitcoins upon Your Death
Nobody wants to contemplate their death. Unfortunately, all human beings die at some point. And your heirs don’t have to lose your digital assets upon your death. That’s why you should have an inheritance plan. Ensure that the inheritance plan enables them to access your Bitcoins once you die, not before. Thus, you require a balance between accessibility and security to avoid exposing your tokens to theft.
Perhaps, the best inheritance plan is a letter that tells your loved ones about your Bitcoin. This letter should be like a memorandum informing your loved ones how to recover Bitcoins in your absence. Since this letter won’t have personal details, anybody that reads it may not steal your Bitcoins. However, treat the memo confidentially because it will include your financial information.
Talk to Trusted People
You don’t want your family members to read your letter and realize that they have to recover some Bitcoins. If you remember, installing a crypto wallet and setting it up to start receiving and sending Bitcoin is a stressful process. Many things can also go wrong when doing it.
Therefore, share the names of trusted people that can help your heirs with Bitcoin recovery. These should be people that your loved ones and you trust. You can also include two people you trust but don’t know each other. Make sure that your letter includes their names, phone numbers, and email addresses.
Secure Your Bitcoins
Most people store Bitcoins in digital wallets and crypto exchanges. However, experts recommend keeping a relatively small number of tokens in a crypto exchange like the https://bitcoin-loophole.live/. That’s because such a platform is only for purchasing and selling Bitcoins. Therefore, security may not be its priority.
Crypto wallets are ideal storage for Bitcoins. But even digital wallets require verified backups. If you don’t create a backup for your wallet, develop one when documenting it. For instance, you can write it on paper and store it securely. Take some time to learn how to backup your Bitcoin wallets and do it properly.
Develop an Inventory
Ensure that your heirs will know what to find physically. For instance, where can your dependents find your Bitcoin wallet backups? Essentially, create an inventory for all digital assets. Nevertheless, don’t include vital information in your electronic stock.
Final Thoughts
Preparing your Bitcoins for your heirs enables you to ensure that you don’t lose them upon your death. And the preparation process entails having a list of inventory, backups, and trusted contracts that can assist your loved ones when you’re no longer around. Also, write your loved ones a letter informing them about your digital assets. This letter should also guide your loved ones, whether they opt to hold on to Bitcoins or sell them upon your death.
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