So far writing a will largely is a job undertaken by advocates. Typically writing or planning a will involves the distribution of one’s assets after their passing and includes tangible assets and financial accounts. However, with the increasing popularity of cryptocurrency and digital assets, it is believed that cryptocurrency and digital assets will also find a place in this digital age. “As these assets become more prevalent, it may become essential to address their inclusion and distribution within estate or will planning. By incorporating them into will, individuals can expect a seamless transfer of their digital wealth to their chosen beneficiaries. Furthermore, it may establish clear guidelines and instructions on accessing and managing digital assets,” Shivam Thakral, CEO, BuyUcoin, an Indian digital asset exchange, told FE Blockchain.
The number of users in digital assets market is expected to amount to about 994.30 million users by 2027, as per insights from Statista, a market research platform. Industry experts believe passing down of cryptocurrency and digital assets as inheritance can foster the growth of decentralised economies and redefine the concept of ownership. It would also enable individuals to transfer their virtual wealth and possessions seamlessly to future generations, shaping a new paradigm of inheritance.
However, when it comes to digital assets, there are several considerations that needs to be taken into account. “Individuals should be aware of the clear inventory of what they own, wherein they own and who owns the digital wallets. Second would be security and access to digital assets which are typically secured by private keys, which grant access to the funds. It is important to establish a secure method of storing and accessing these keys and to communicate this information to trusted individuals who will handle the estate. Lastly, certain rules related to beneficiary or nominee designations should be kept in mind,” Anagh Tiwari, AVP – legal and compliance, Liminal, a wallet infrastructure and custody solutions platform, explained.
Furthermore, as we move towards a virtually connected environment, experts believe the aggregate value of transactions in digital space is expected to go up. “ Use cases such as the experience with Web3.0 gaming have shown environments where users have their own proprietary currency like coins, which are tradable within the environment. However, they are a means for convenience as most of these coins are purchased through fiat for the environment. So, even if it gets passed as inheritance, it cannot overtake fiat,” Utkarsh Sinha, managing director, Bexley Advisors, a boutique investment bank, concluded.