If you are reading this article, chances are you are already in the class of many with cryptocurrency portfolios. Like most other crypto investors, you are looking to ensure your loved ones or any one of your choices gets to access your coin and assets in the event of an eventuality.
What is Crypto Inheritance Planning?
Crypto estate planning means putting processes in place to ensure your dependents and loved ones have access to your digital assets in the event of death and any other eventuality where you are incapable of telling them how to access the assets.
While it is easy to plan other types of assets and holdings, the nature of cryptocurrency makes it essential to make special considerations when thinking of crypto estate planning.
So what should you do?
Take stock. Track every crypto assets you own.
The first rule to planning your crypto estate is understanding that taking stock and knowing what you own. Most people use multiple wallets and custody. This is where tools like Cova come in. Connect your wallets and coin. This helps you see an accurate picture of all your crypto assets in one place.
Decide what you want the people in your life to know.
Notes that help your loved ones know the exact location of your crypto assets and how to access them are essential in your plan. Add phrases, secrets in a secure way so you ensure the right person can access this information when the time comes. Note that the process for information for exchange, wallet, or device holdings will be different. You need to ensure that the information is detailed enough that your heir can easily access these coins.
Now how do you pass this information to your chosen beneficiary?
This is where third-party apps like Cova come in; with Cova, you can track all your assets in one place, add notes and essential information, add beneficiaries, and set up Lifecheck.
In addition, Cova's Lifecheck feature lets you set up a dead man switch which checks up on you when you stop being active on the app and follows your laid out protocol.