It is, without a doubt, in recent years that cryptocurrency (or crypto for short) has become a very popular investment venture. It’s so popular to an extent you’ll see people putting in a minimal sum just to try it out for themselves.
However, have you ever thought about what will happen to all that money you’ve made in crypto when you have passed away? Where will it go when you are no longer around? Who can lay claim to your crypto assets when you are dead?
Everyone knows that when you have passed away, your assets and properties will go to your next of kin in Malaysia. Whether you have a will or not, your next of kin will get it regardless of how long they have to wait for it. The only difference is whether you have a will and/or will or not.
For crypto, it works almost similarly. Read on to find out more about where your crypto will go when you have passed away.
Having a will
Having a will can make things easier for you when you have passed away. If you have one, you can put in whatever assets you have there. When you have passed away, your named beneficiaries will get a cut of that distribution. That’s how wills work, generally.
It’s the same thing here with cryptocurrency. You can list your crypto in your wills so when you’ve passed away, your beneficiaries will get whatever profit your crypto is valued at that point in time.
It’s said that there are billions of dollars worth of unclaimed crypto assets left unclaimed according to this article by New York Times.
In order to include your crypto in your will, it’s best that you include the private keys to your crypto in it. Let your lawyers know where you keep your cryptos and how you store them. Do you store them in cold wallets or hot wallets? Because those 2 wallets have different ways of accessing your cryptos.
Prepare a set of instructions for your next-of-kin for inheriting your crypto assets
Not everyone is tech-savvy, including some of your family members and relatives. What that happens, it’s quite likely they have no idea how to access your crypto accounts to get the money you’ve left behind.
With that in mind, a lot of people are advised to leave behind a set of instructions for their non-tech-savvy family members. List down a detailed list of instructions for your relatives and family members on how to withdraw your crypto money at a later date. They will thank you later.
Some people leave instructions in a notebook and stash it away in a safe space. In your instructions you should have the following vital information:
- Where you store your cryptocurrencies
- The passwords and keys to your crypto wallets and accounts
- Get and assign a digital executor to delegate your crypto
- List your crypto assets in your will and specify who gets what
Is crypto subjected to the same foreign asset tax treatment in Malaysia?
This is a common question asked by many crypto miners and is a valid one at that. In some countries like Australia and the UK impose capital gains taxes on cryptocurrencies. Malaysia does not, apparently, according to The Malaysian Reserve news published on LHDN’s website.
In summary – the article says that cryptocurrencies are volatile and unstable. It’s not a controlled currency like your typical MYR, GBP, USD, etc. That means no countries control cryptocurrencies, making it not recognizable as a legal tender currency anywhere. Not officially, at least, though there are some stores that accept crypto as payment. Therefore, cryptocurrencies are not taxed in Malaysia for now.
Conclusion
Cryptocurrencies may not be recognized by the Malaysian government. However, it does not stop Malaysians from trading it online. Just remember that you have everything prepared and listed in your wills – while you are alive, of course. Don’t wait till it’s too late and when you have passed away. If you have, your next-of-kin will have a hard time trying to retrieve your profits when you are no longer around.
