Death is a very sad event where all the vital functions in our body stop working and cannot be reversed. No matter how careful we are about our safety, health, and diet, death is something we will all face at some point in our lives.
NFT Wealth for Future Generations:
Since many investors who got involved in the crypto industry around 2018 are now married and may have one or two children, it’s important to consider what will happen to their digital wealth, such as Bitcoin, Ethereum, and non-fungible tokens (NFTs), after they pass away.
It’s worth mentioning that most NFT investors have taken precautions to protect their digital wallets, including teaching their spouses how to access their assets in case something happens to them. Additionally, many investors have also purchased life insurance.
In this context, another important question arises: What will happen to their digital wealth if both the investor and their spouse tragically die at the same time? And what if an investor doesn’t fully trust their spouse to know about their NFT holdings? How can we ensure a safe transfer of our NFT wealth to our children or family?
What Happens to Your NFTs When You Pass Away?
In a recent interview, Jaime Herren, a well-known lawyer specializing in wealth services, emphasized the importance of ensuring a smooth transition of NFT ownership to loved ones after death. Herren explained:
“If you have a valuable asset, it’s always worth taking steps to make sure it goes to the right place after you die, whether that’s to your heirs or to a charity. Managing substantial crypto assets requires planners and fiduciaries with technical knowledge.”
Before wrapping up, Herren clarified that if the owner of NFTs passes away while having a comprehensive plan in place, the executor or trustee will take responsibility for transferring the NFTs to the beneficiaries. However, this process requires NFT collectors to provide instructions to these executors and trustees on how to access their wallets.
Unfortunately, in the coming years, many Bitcoins and NFTs will be considered “lost” because owners have not passed them on to their children. Data from the blockchain analytics firm Glassnode indicates that approximately 2.7 million Bitcoins, worth around $76 billion, have remained untouched for a decade.