It is thought that we are slowly transitioning into a cashless society. We’ve had the introduction of contactless payments, and Apple and Android pay. So why, wouldn’t we consider leaving some of our cash in digital form too.
Previously we explored what cryptocurrency is and where it came from and whether it should be included in a Will.
Now we want to show you how you can advise a client who has cryptocurrency about adding its provision in their Will.
Cryptocurrency isn’t like physical cash, it will be stored in a client’s digital wallet. If a client has cryptocurrency that they want to include in their will, they will also need to add the following information:
- Information about their digital wallets
- Create a memorandum to the Will which contains passwords and PIN numbers
- Include a step-by-step-guide to explain how your beneficiaries can access the cryptocurrency
Although the digital currency has been around for over a decade, it still isn’t a widely used thing. However, experts are predicting that the currency will continue to take off and thrive as we continue down the transition journey of a cashless society.
How would I write a cryptocurrency provision in a client’s Will?
When a client informs you, they have cryptocurrency that they wish to include in their Will, you may include wording similar to the below:
I leave all my cryptocurrency investments, crypto-coins, tokens, any other form of digital cash, or anything found in or on my cryptocurrency wallets to [insert name of beneficiary].
My cryptocurrency might be stored on digital wallets, paper wallets, online exchanges, or a combination of wallets and exchanges. The following items or devices might contain a cryptocurrency wallet: [insert names of computers, phones, tablets etc]. These items should not be distributed to any person until such time as the cryptocurrency, digital cash, or any information related to the access of my cryptocurrency is transferred to [beneficiary named above].
I have created a separate writing from this Will that explains how to access my cryptocurrency wallets and online cryptocurrency accounts. This document needs to be kept private as it contains the passwords, PINs, and private keys needed to access my cryptocurrency. This document will likely be stored with my other estate planning documents or [insert specific location].
What happens if beneficiaries don’t want cryptocurrency?
Cryptocurrency isn’t for everyone. Some people would much rather have the physical cash in their hands, others would just want to have the currency in their traditional bank account. This can be achieved.
The client needs to ensure that their executor has knowledge of how to use cryptocurrency and how to exchange it for physical cash.
