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What happens to your cryptocurrencies after your death?

Cryptocurrencies: what happens to our digital assets in the event of death?

To date, BrokerChooser broker comparison tool believes that nearly 2.4 million French Internet users would have cryptocurrencies. This is equivalent to 3.3% of the French population.
The fervor for this concept is spreading, and many enthusiasts are starting to invest in bitcoins. So much so, in fact, that the value of these crypto-currencies is beginning to be quantified, and they could well gradually take hold on the financial market. But there's another side to the coin: if you die overnight, your digital currencies disappear too. It's a harsh reality that you need to face and, above all, prepare for: what happens to my cryptocurrencies when I die? How can I pass them on so as to avoid losing them?

First of all, what are cryptocurrencies?

Cryptocurrencies represent a virtual value. The National Consumer Institute (INC) cites cryptocurrencies as " a virtual currency that relies on a computer protocol of encrypted and decentralized transactions, called blockchain ". To take things a step further, these are " virtual assets stored on an electronic medium allowing a community of users accepting them as payment to carry out transactions without having to use legal tender ". By financial transactions, we mean transfers and purchases, like the euro after all. Except that cryptocurrencies are legally worthless, since they are not subject to any institution and cannot be saved. The French Financial Markets Authority (AMF) even goes so far as to point out that this is a risky market, plagued by numerous scams. Nothing is certain, yet many of you are opting for this universal currency model. Investing money, devoting time and even creating your own electronic wallet.

What happens to your cryptocurrency tokens if you pass away?

It goes without saying that if you fail to tell your next of kin (your future heirs) that your access codes are irrecoverable, all your tokens will be lost and your efforts will have been in vain... It's hard to accept this sad fate, yet it's become a real reality to consider: Coincover (a BTC concierge service) claims, for example, that over 4 million Bitcoins are lost forever because the decryption keys cannot be found. To avoid this type of situation, the ideal solution is to bequeath your digital assets. Precautions must be taken so that you can transmit your cryptocurrency tokens.  

➡ Precaution #1 - Tell your future heirs about your digital currency.

You are under no obligation to disclose your access codes during your lifetime. However, you do have the option of telling your loved ones that you are investing in cryptocurrencies (bitcoin or other virtual currencies). Ideally, you should tell them that you have taken the necessary steps to obtain access codes for these accounts. This will make it much easier for your heirs! Please note that if you comply with tax law in the strict sense of the term, and your Bitcoins have a certain value, your digital assets must be listed on your tax return. This should logically facilitate your succession, in theory. The practice has yet to prove itself...  

➡ Precaution #2 - Drawing up a will

Before writing your will, be sure to answer the following questions: - To whom will I bequeath my cryptocurrency tokens? - Should I divide them up among several of my heirs? - Can I transfer some of them to an association? - Can I just indicate where the decryption key is, rather than giving my access codes directly? Once you've answered these questions, choose the type of will you'd like to make: - the holographic will It must be drawn up, dated and signed by you. Be sure to file it with a notary to ensure that it is properly preserved. - lhe authentic will The writing is done by a public official, the notary. In your presence, the notary writes down everything you dictate (your wishes). The deed is then signed after being proofread by you, the notary and your 2 witnesses. This will is valid as long as there is no evidence that the notarial deed does not reflect reality. The notary is obliged to keep it for 75 years. Please check that your notary has recorded your will correctly to the Central File of Last Will and Testament Dispositions (FCDDV). Without this, you cannot be totally certain that your will will be found on your death by the notary in charge of the estate. Now that you've defined the form, it's time to define the content: what instructions are you going to leave? The important thing is to specify the identity of the person or persons who will be looking after your digital assets, and what you intend to do with these crypto-currencies (which sites to connect to, your login and access codes). Bear in mind, too, that you need to leave a record of your cryptocurrency transactions to avoid any unexplained reversals. Make a note of the dates of your transactions, and describe them. Include receipts for cryptocurrency purchases and transfers. Include their value, as well as accounting and legal fees. The more information you provide, the more accurate your tax return will be!  

➡ Precaution #3 - Leave your instructions in a digital safe:

An equally effective solution allows you to transmit your access codes in complete security: the digital safe. Here, we'll focus on the digital safe. Legapass. With this solution, you can easily enter all the information relating to your access codes and the instructions to be given to your future heirs. Similar to the principle of a will, you can indicate everything you feel is important to bequeath. Your data will be stored in your offline safe, protected from hacking by a military-grade algorithm. You can transmit your data at any time from your computer or smartphone. Legapass keeps your information safe and secure, and will pass it on to your heirs in the event of your death. The advantage of using this procedure: in the event of death, the site is informed (thanks to the INSEE deceased persons file) and can contact your heirs to pass on your digital safe. Legapass.

Do I have to opt for the will rather than the digital safe?

You're under no obligation to make a choice, since the two alternatives are complementary. You can also indicate in your will that you have a digital safe. Legapass in which you indicated the procedure to follow and all your identifiers. In the same way, you can leave a note in your offline safe that you have made a will with a particular notary, and that your beneficiaries will therefore have to turn to him or her for the succession of your digital assets. By ensuring that you pass on your digital tokens via the will and the electronic safe, you are opting for security of your digital heritage and the non-loss of your assets in the limbo of the Web.

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