There’s been a lot of discussion about digital assets and what happens to your bitcoin accounts when you die. When we checked a while ago, we were told that after a certain period of inactivity, your Bitcoin account will disappear and the money you have in it will be gone forever. If you haven’t given your login, password and digital key information to the person(s) you’d like to inherit the money, they cannot access your Bitcoin wallet and they’re out of luck.
Recently, a few companies have tried to address this important issue. One we came across is Bitcoin Estate Plan. Their premise is simple. They automatically deliver bitcoin wallet access instructions to your heirs upon your death or incapacitation. This is accomplished through email, phone and/or a written letter via the postal service. You tell them who you want them to contact and the message you want them to send.
The company “will then email or phone you periodically to confirm that you are still alive. If you do not respond after a specified number of attempts the system will deliver your message to your intended recipient(s) by email, snail mail or phone depending upon which service plan you choose.”
It would be cheaper for you to share the necessary information with your heirs prior to your death. However, if you do, they will have the ability to access your funds at any time. A better option to consider might be a company like Bitcoin Estate Plan. That way, your money won’t disappear when you do.
For more information about digital assets and how to protect them, read our book “Access Denied: Your Digital Estate – Why Passwords Are Now as Important as Passwords”. It’s available at Amazon. Also, check out our website www.diesmart.com.
I read this story in the New York Times a few days ago and it still haunts me.
The Lonely Death of George Bell tells about a man who died alone. No one realized he was gone and there was no one to plan his funeral or settle his estate. This story goes thru the saga of what happened to him, what he left behind and who had to deal with all of it. It’s more like a novella than an article but it’s well worth taking the time to read it. I did and can’t forget it!
For more information about issues related to dying and settling an estate, go to www.diesmart.com.
On Monday, Yahoo Japan announced “Yahoo! Ending”, a program designed to help Yahoo Japan users plan for their death. The search engine, in partnership with funeral services company Kamakura Shinsho, helps Yahoo Japan users make a will, find a grave, and plan their funeral. Once Yahoo Japan confirms the user has died, the service will set up a memorial site, send out digital farewell messages, and delete personal data from Yahoo’s on line system. In the future, Yahoo Ending could be expanded to work with credit card, insurance and other companies to manage a wider scope of personal data left behind when users pass away.
Yahoo Ending answers the question “what happens to your Yahoo Japan digital assets when you die”. Once Yahoo Japan receives proof of death, Yahoo Japan assumes it has the legal authority to delete digital assets created and stored on Yahoo Japan.
In the United States, Yahoo digital assets are in fact part of the estate of the deceased. Before we created our digital life, we stored photos and art in an album or a picture frame. Our emails and text messages were paper letters and notes stored in a file cabinet. When someone dies, the estate representative is required by law to take an inventory of property owned by the deceased and assign a value to the property, including their digital assets. The estate representative is then required by law to dispose of property the deceased owned based on instructions left in a will or a trust, or state intestate laws if the decedent died without a will or a trust. In today’s paper world, estate representatives or beneficiaries must provide documents providing they are managing the assets according to the wishes of the deceased. In a paper world, proof of death does not trigger the automatic deletion or destruction of property owned by the decedent.
The question “what happens to our digital assets” continues to be the subject of legal debate as the internet service providers and the legal infrastructure grapple with the rules and processes for managing and disposing of digital assets that are in fact part of our estate.
We need programs and policies that don’t just deal with the death of the account owner, but also provide a way for trustees and conservators to manage our digital assets in the case of incapacity.
PC World – Dead In Japan
Wall Street Journal
I came across an old article in the New York Times about this topic and thought it worth reviewing.
When someone who purchased a life insurance policy dies, the amount due to the beneficiary is set aside and the insurance company waits to be contacted by that person. After a period of time from two to seven years (it varies by state) has passed with no one coming forward, the money is turned over to the unclaimed property division of the state in which the person died.
Since many people do not know whether a family member who died purchased a life insurance policy in their name, hundreds of millions of dollars go unclaimed. In fact, New York alone, in the period 2000 to a few years ago, received more than $400 million in unclaimed life insurance property and only paid out about $64 million. That means the bulk of that property remains unclaimed and probably will never be claimed.
If a family member has died and you think he or she might have had a life insurance policy, the first thing to do is to check for any payment receipts or check stubs so you can identify the name of the insurance company. Contact that company, ask what their procedure is for filing a claim and then follow their instructions.
If a great deal of time has lapsed, two good places to start are unclaimed.org and MissingMoney.com. If they have no record of any funds, check the website for the unclaimed property department of the state in which the person died.
Don’t leave your money in the state’s coffers. Claim the funds due to you today.
For information about estate planning and other relevant topics, go to www.diesmart.com.
In the “old days”, a paper trail was usually very easy to follow when someone died. You could find their bank account statements, credit card and utility bills and pension and brokerage account information all tucked away in a file cabinet or a drawer. Then you called the contact numbers provided to notify them about the death.
Today, it’s not so simple.
Many of us do our banking online. All we do is log in, click on those merchants we wish to pay, insert the amount and we’re done. If we want to transfer money or even deposit a check, no paper has to be used. Everything is done electronically.
Bill paying has also gone paperless. I can’t remember the last time I received a bill in the mail. Today I just receive an electronic notification that my bill has been processed for payment.
If I want to know how my portfolio is doing, I log into my brokerage account to check. I no longer get huge stacks of paperwork every month detailing the value of each investment. It’s the same with my pension – I just go online and review the numbers.
This is great except for one thing. It leaves no paper trail for our loved ones to follow when we die. If we don’t keep good records that list all of the accounts that we manage online as well as the passwords and other information needed to access them, they may never be found and some of our assets may be floating around in cyberspace forever.
For more information about how to plan for incapacity or death, go to www.diesmart.com.