How to Ensure Your Dependants Access Your Wallets Once You Die

Bitcoin is a profitable currency that has the potential to accumulate huge returns. Many people across the globe are investing in this digital money with the hope of incurring profits. Moreover, people can't avoid death, and digital money holders will die at some point.

When these digital money users die without sharing their private keys to their wallets with anyone, their Bitcoin holdings may end up unworthy and useless. Therefore, people should create an inventory showing access to their accounts and private keys along with the ability of this tool's Bitcoin Code. The stock comes hand in hand with a will. They will show how the deceased wants their digital money holdings distributed and which accounts should be closed. Therefore, a will and an inventory are crucial. Here is how a deceased can ensure that their dependents access their wallets once they die.

Come Up With Copies of Privileged Information

Creating copies of privileged information means writing down information about your Bitcoin holdings. The Bitcoin industry has many players you should consider when making copies of confidential information.

For instance, exchanges are the most common places where people purchase, buy and sell this digital money. Many of these digital money exchanges are centralized, meaning that once you deposit an amount on the exchange, it is in your wallet and under ultimate control. In the end, Bitcoin users need passwords to access their holdings.

Unfortunately, exchanges cannot inform your family if you die because they will not be aware that you died. As a result, to ensure that your loved ones and family gain access to your holdings, create information about platforms that have your Bitcoin holdings. Indicate the digital venue and the amount. However, do not include your passwords.

Wallets

Wallets are also key players in this digital money industry. These digital wallets are what securely store your digital currencies. Therefore, if you are using a custodial wallet, the process is similar to a centralized exchange. But, if you use a non-custodial wallet, ensure that you backup your wallet.

On the contrary, if you happen not to back up your wallet, you can note down some information about the name of the wallet you use. In addition, when creating a digital wallet, you are always requested to provide a twelve-word recovery phrase, so you should also note it down and keep it in an envelope. Humans can read the human expression since it is a representation of your private key. In the end, ensure that you safely store the recovery phrase only your loved one can access. You may decide to keep it in your home but lock it up in a safe.

Once you've backed up your non-custodial wallet, come up with a list for your loved ones. Name the wallets you use and the amount of this digital money they hold. Also, if you have holdings from other cryptocurrencies such as Ethereum or Litecoin, ensure that you indicate that information too.

Digital wallets are of two types, a hot wallet, and a cold wallet. Therefore, if you are using a cold wallet, advise your loved ones not to crash any device they find. List down the devices you use since that could be where you store your investments.

The Bottom Line

Bitcoin is a highly lucrative investment you should not lose in case of death. Therefore, create a reliable plan on how your family and loved ones can access your Bitcoin wallet using your private key.