Most young owners have no plan to transfer their digital assets when they die.
After a Survey among 1,150 participants between October 2019 and June 2020 for him Cremation instituteMost cryptocurrency holders are concerned about the transfer of their wealth after their death. However, a large number of them do not use wills, trusts, or proper instructions for beneficiaries. According to the institute, this lack of preparation is due to a lack of crypto-focused follow-up services and a lack of state regulation.
The study recorded that 89% of investors said they were somewhat concerned about the possibility that their crypto assets would be transferred to their family or friends after their deathNone of the respondents said they were “not at all” affected.
Source: cremation institute
However, It is more than likely that the younger generations – people between 18 and 40 years – They have no plan for their digital assets when they die. Only 65% of millennials and 41% of zoomers said they had left an instruction for their crypto assets. The older generations – 86% of Generation X and 94% of Baby Boomers – They said they had a plan to inherit their cryptocurrencies.
For those who said they had a planthe majority – 65% – They said they left instructions for their goods in the house where supposedly a beneficiary could easily find them. Only 2% used safe measures like safesand 32% said Use a USB stick or computer to save the instructions.
The study concluded Holders used wills four times less for inheritance – 7% compared to 32% of non-crypto space investors – a result that the institute described as “quite alarming”.
Lost digital assets
according to Adam Binstock The Cremation Institute study was conducted after “hearing horror stories from people who died with their fortunes”.
The insurance company Coin case appreciates that Nearly 4 million Bitcoin (BTC) – or more than $ 37 billion – have practically been removed from the market after losing access.
One of the best known incidents in which a large number of crypto assets are said to have been lost after their death is that of Gerry Cotten, the founder of QuadrigaCX. When he died in India in 2018, without ever handing over the $ 145 million keys in tokensMany suspected that he had faked his own death. The The Ontario Securities Commission reported that the exchange was actually a Ponzi program created by Cotton.
Another case involved in 2017 A man who piled a large amount of Bitcoin on Coinbase but died without giving instructions to his family on how to access it. The family was able to provide evidence of his death and relationship with the platform to gain access to the funds. If their funds hadn’t been on a US stock exchange or if they weren’t US citizens themselves, the process could have been much more complicated.
Some companies launch services to solve these problems. Inheriti, a Inheritance service for digital assets from the Safe Haven platform It is now in beta and will be released soon. The Cremation Institute report states that the attorney for McLeod Law, Matthew Burgoyneassumes that the number of AI-based third-party services that manage private keys in the event of death will increase.
The Cremation Institute consists of experts, employees and researchers “They create important resources for the end of life for individuals and families.”