If you are familiar with the world of investing, you must have already been tempted to invest in the new rage — Cryptocurrency. Buzzwords like Crypto, Bitcoins, etc. have been doing their rounds for some time across the globe and with quite a few exchanges in the country, Indian investors are not far behind. Even as the authorities are yet to recognise and regularise it, people are taking the plunge into digital investments. However, not many talk about what happens to these digital assets in case of the (untimely) demise of the investor. In the absence of a government ruling on its legality, can there be a nominee, or will the legal heir inherit them? Let us explore…
While the Union Budget 2022 did talk about taxation on Cryptocurrency, digital assets still lack a concrete succession policy. However, there have been a lot of social media discussions on it, including crypto experts insisting on the need for a nomination procedure. As an answer to this, several exchanges in India have started introducing a nomination process for its customers. The details of the nominee or the inheritor, like name, mobile number, address, etc. can be updated on the exchange website as you sign up for the investment. In case of the demise of the customer, the funds can be transferred to the inheritor’s account.
Just like in case of other assets, in case there is a nominee and not an inheritor, the former is the custodian until the legal heir or the inheritor mentioned in the will receives it. According to experts, it is the same in case of digital assets, and customers/investors should be careful to mention the nominee/inheritor in their will (if they make one) as the legal heir. They can also assign a password and mention it in the will or portfolio so that the inheritor can have access to the account when the time comes. Until Cryptocurrencies are regulated by the government, they can be included in the will as any other legal asset.
Whether you want to nominate someone or mention them in your will is your choice. But you would definitely not want your investments to lie unclaimed in your absence. You can start talking about your Crypto and other investments with people like your partner or children to keep them informed. An even better idea would be to have a digital portfolio with the information of all your assets and investments so that they are easily accessible in case of any untoward situation. You can create a portfolio on EasyInherit and take it from there!
Comments