23% of Crypto Holders Have a Plan for Beneficiaries’ Access to their Assets After Death
The number of cryptocurrency investors has increased hugely in the last decade. Data from Coinmetrics.io shows that there are 12,000 Bitcoin millionaires worldwide at the moment. However, some people die every year with their family not having access to their Bitcoin holdings.
Based on the estimates by Coincover, about 4 million Bitcoins valued at almost $40 billion has been forever lost because of death. The Cremation Institute carried out new research which shows that 89 percent of cryptocurrency investors worry about what will happen to their assets following their demise.
The institute’s report shows that only 23 percent of investors have a documented plan. The institute carried out a survey between October 2019 and June 2020, and 1,150 individuals participated in it.
A large proportion of Bitcoin investors who do not have wills, trusts, or proper instructions for beneficiaries is because of the absence of estate services that focus on cryptocurrency assets as well as the absence of government regulation, said the institute.
Likewise, the survey results reveal that millennials and zoomers are the least likely cryptocurrency investors to document how their families can access their cryptocurrencies should they die unexpectedly. Just 65 percent of Millennials and 41 percent of Zoomers have some kind of instruction for their digital assets.
Only 86 percent of the cryptocurrency investors from Generation X and 94 percent of Baby Boomers have a plan to pass on their crypto holdings. Many of them (65 percent) have left instructions on how a supposed beneficiary can access their assets around the home where they can easily find them. However, 2 percent utilized secure solutions such as safety deposit boxes, and 32 percent utilized USB sticks or computers for storing instructions.
Due to unexpected death of digital asset holders, some firms are coming up with services to address these issues. For instance, Inheriti is a digital asset inheritance service from Safe Haven and it is planning to launch soon.