How do you leave cryptocurrencies in your Malaysian wills?
It’s no secret that Malaysians do own cryptocurrencies in various figures. A lot of Malaysians have bought cryptos for many years. However, what happens when you have passed away? What will become of your cryptocurrencies then?
It is advisable for all Malaysians to have a will first and have it updated periodically. If you don’t have a will yet, it’s good to make one and have it validated. If you already have one, make sure you review it periodically.
Assuming that you already have an existing will, then things will be much easier for you and your relatives. If you own cryptocurrencies, you can easily just list it in your will – no problem at all.
Listing your cryptocurrencies in your wills
Though listing and including your cryptocurrencies in your wills is as easy as a piece of cake, then how do you go about doing it then? Here is what you should do when it comes to listing your cryptocurrencies in your wills.
1. Mention where you have cryptocurrencies at
There are so many cryptocurrency platforms around. You’re bound to have (in the very least) 1 account on 1 platform. Or you may have several accounts spread across several different platforms. List all of the accounts you have on every platform you are on.
Then, list down the passwords and keys to your cryptocurrency accounts. Cryptocurrencies are not like jewelries and houses. It cannot be seen and touched. In your will, you should clearly describe your cryptocurrency and where to find it.
2. Digital wallets
When you have cryptocurrencies on any platform, you are bound to have an electronic wallet or a digital wallet. The digital wallet is for you to store your cryptocurrencies. Like the platforms, you should list your digital wallet down. Include the passwords and Login IDs too.
Digital wallets are often accessible via computers or smartphones. It often requires certain devices to be able to access. Include these devices in your will so the key elements stay together until your beneficiaries are able to access them.
3. Create passwords and PIN memos in your wills
When you have passed away, security access to your cryptocurrencies will be an issue. It is understandable that as crypto owners, you may not feel comfortable sharing this information. However, putting them down in your will for your beneficiary will be a good idea.
You can create a memorandum, which is a separate document from the will, and list security information in it. Then, in your will, reference this memorandum so your beneficiaries are able to access it.
4. Make a step-by-step access guide
Not everyone knows how to access and use a cryptocurrency platform. Some people are not very tech-savvy. In order to help any beneficiary that is not tech-savvy, you should come up with a step-by-step guide to help them access the platform.
In the step-by-step guide, explain how to access your cryptocurrency. Include in it your passwords and PIN numbers. Though some beneficiaries are already familiar with cryptocurrencies, they may not be familiar with how to access your cryptocurrencies.
When preparing the step-by-step guide, assume that your beneficiaries are not tech-savvy and know nothing about it.
5. Other things to consider
Not every beneficiary may be comfortable with cryptocurrencies. With the provided instructions, they may have a hard time navigating the process. Some people may suggest leaving the value of the investment rather than leaving them cryptocurrencies instead.
If that’s the case, it will need the estate executor to have technical skills to exchange cryptocurrencies for traditional cash. Worst case scenario is to hire an estate administration attorney who has experience in dealing with cryptocurrencies.
If privacy is your concern, you can also put your cryptocurrency into a trust. A trust can help keep your cryptocurrency out of probate and can help keep information about your coins.
Putting cryptocurrencies into your wills is not necessarily a complicated matter. With step-by-step planning, you can put together your cryptocurrencies and have them listed in your wills or trusts.
Contact us today if you have any queries on the above.