Inheriting a Problem

Inheriting cryptocurrency can feel like a win, but for someone unfamiliar with the space, it can quickly turn into a nightmare. Unlike a bank account that can be easily accessed with a death certificate, crypto assets are secured by a complex system that can be impenetrable to the uninitiated. This can leave an heir in a difficult and stressful position, with potentially valuable assets trapped behind a wall of technical jargon and unique risks.

The Problems for a Non-Crypto Receiver 😥

1. The "Lost Keys" Problem: The fundamental issue is that a non-crypto person has no way to understand what a private key or a seed phrase is, much less how to use it. Without a clear set of instructions, they may be handed a piece of paper with 12 random words and have no idea that it's the key to their inheritance. They may even mistake it for junk and throw it away, leading to permanent loss of the assets.
2. No Customer Service to Call: When an heir encounters a problem, their instinct is to call a customer support line. With decentralized assets, there is no such thing. There is no bank manager to call, no "forgot password" option, and no central authority to help them if they make a mistake.
3. The Risk of Scams: A non-technical person is an easy target for scammers. An attacker could find out they've inherited crypto and use social engineering to trick them into entering the recovery phrase on a fake website, promising to "help" them access their funds. The inheritor, not knowing any better, could fall victim to this, losing the assets to the scammer.
4. Technical Complexity and Stress: The process of accessing and managing crypto can be intimidating. Downloading the right wallet, understanding transaction fees, and knowing how to send assets to an exchange to convert them to cash can be an overwhelming burden at a time when they are already grieving.

The Solution: A Clear, Secure Plan ✍️

For the sake of your loved ones, a crypto inheritance plan isn't a suggestion—it's a necessity.

• Create a "Crypto Inheritance" Packet: This should be a physical document with a clear, step-by-step guide for a total beginner. It should explain what a crypto wallet is, how to use it, and what a recovery phrase is.
• Securely Store the Recovery Phrase: Never write the recovery phrase directly in a will or a public document. Instead, store it in a secure location, like a fireproof safe or a bank safety deposit box, and provide instructions in the inheritance packet on how to retrieve it.
• Appoint a "Digital Executor": Consider naming a tech-savvy family member or a trusted professional as a "digital executor" in your will. This person would be responsible for helping your beneficiaries navigate the technical process.
• Use a Custodial Service: For the non-technical person, holding assets on a reputable centralized exchange like Coinbase or Binance is often the simplest solution. These platforms have established procedures for inheritance and provide a more familiar "bank-like" experience for the beneficiary. While this sacrifices some decentralization, it minimizes the risk of total loss due to technical error.

Don't let your digital legacy become a digital burden. A little preparation now can save your loved ones from a world of confusion and potential financial loss down the line.

Need help recovering your assets? contact us today, hello@rescu.fyi.