Digital Currencies and the Will

Digital currency is a form of currency that is available only in digital or electronic form, and not in physical form. Digital currencies are intangible and can only be owned and transacted in by using computers or electronic wallets connected to the Internet or the designated networks. In contrast, physical currencies, like banknotes and minted coins, are tangible and transactions are possible only by their holders who have their physical ownership.

An example of digital currency is cryptocurrency. It is a virtual currency that can be used as a method of exchange online. However, while it can be used for payment it is not recognised as a currency but rather, as an asset.

Estate Planning
As the popularity of cryptocurrency increases, it is set to permeate other aspects of life.

We are starting to see cryptocurrency as an asset in deceased estates. For example, a person makes a Will leaving all of their assets to their children, the beneficiaries. That person dies and then the executor must locate all of the assets of the estate to distribute to the beneficiaries. Cryptocurrencies form a substantial part of the asset pool. The executor must then work out how to distribute them. If the executor does not have access to the encrypted codes and electronic signatures, this task becomes extremely difficult and may cause significant delays in the granting of probate and the distribution of the estate.

This means that if you hold cryptocurrency assets, you need to carefully consider your estate planning needs. For example, it is important to consider that, like shares, the value of your cryptocurrency is not static; it can change on a day-to-day basis. Therefore it is recommended that you do not include in your Will details of the exact value of the cryptocurrency you own, because it is likely that the value will change.
However, there is more to including your cryptocurrency in your Will than simply listing it as an asset. Cryptocurrencies are stored virtually on a "blockchain"; for example, Bitcoin is stored on the Bitcoin blockchain. To access this you need a unique, private key. It is important for the executor of your Will to know where to find this private key. It is not recommended for you to write your private keys into your Will. That is because your Will becomes a public document if and when probate is granted, there is a risk for people other than your executor to be able to access this information.

If you own digital currencies and would like to find out more about estate planning including your rights and options, Straits Lawyers are here to help. Simply send us an email at info@straitslawyers.com or give us a call on 8410 9069 to arrange an appointment for an interview.
Alternatively, you can book an online consultation with us via this link: https://straits-lawyers.square.site/product/online-consultation-/11?cs=true

Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.

Get in touch

Our multi-skilled, multi-lingual team are committed to helping you. Get in touch to experience a solutions-based approach to law.