Digital security is a big deal when it comes to holding and investing in bitcoin. Investors in Florida and states throughout the country are putting large sums of their money into cryptocurrencies, but whether or not their families will be able to benefit in the event of an unexpected death or incapacitation is not always certain. That’s because digital wallets that hold cryptocurrency use strict security features that can include complicated passwords only the owner knows about.
In order to solve this problem, owners with digital currency need to take a few steps. The first is to create a detailed inventory of all their digital assets. This can apply to more than just bitcoin. For example, they might want to review things like digital photos, music and passwords to accounts that provide access to tangible assets. Some advisers recommend creating a binder with this information called a financial life organizer.
Another important step to passing on digital assets is to organize all login credentials in a single place where family members or other loved ones can access in case the unfortunate happens. Some tech experts recommend accomplishing this with the use of a password manager. This application holds all passwords in a single secure location that can be opened with a single master password. By giving the master password to beneficiaries, they can access everything else.
Individuals who have wills that include bitcoin or other cryptocurrencies could consult with an attorney to figure out the best legal way to hand over access of their digital assets to beneficiaries. Legal counsel may work with tech and financial experts to help accomplish this. The estate owner should also consider communicating with their beneficiaries to make sure they understand the nature of digital assets and the potential risks of keeping them.