When you die, the bank draws up a statement of all your accounts and investments for the distribution of the estate and the calculation of the Inheritance Tax</div><div class=glossaryItemBody>Succession rights is a tax that is calculated on obtaining an inheritance. If you receive certain movable property and immovable property from a deceased family friend or acquaintance, you pay inheritance tax on the value of these goods. This is also the case when inheriting a house.<br/></div>” href=”https://debeleggersgids.be/woordenboek/successierechten/”>succession rights. With cryptocurrency it is completely different: you are the bank yourself and now suddenly you as a bank fall away. The legal heirs are entitled to the cryptocurrency, but very often encounter problems. No money without a bank, right? It is a bit more complicated and fortunately there are still solutions to be found. Legal situation
Purely legally, as an heir, you are entitled to your share of the estate. This is what remains after the distribution of Assets</div><div class=glossaryItemBody>This is the totality of assets of a company. The assets are expressed in monetary terms. <br/></div>” href=”https://debeleggersgids.be/woordenboek/activa/”>activities, Liabilities</div><div class=glossaryItemBody>This is the totality of investments in a company. Both debt (loans etc) and equity together form the liabilities.<br/></div>” href=”https://debeleggersgids.be/woordenboek/passiva/”>passiva, inheritance tax and the breakdown according to the number of heirs. It does not necessarily have to be something physical, so you can also inherit cryptocurrency. The problems are rather practical: these wallets very often float somewhere in the anonymous, especially if they are stored and encrypted with hardware. It is often a bit like ‘knowing that the testator has left a bag of money somewhere’. How much money and where that ‘bag’ is located? Let’s find out. In the worst case, you will never know that there was a crypto wallet waiting for you somewhere. It’s a bit reminiscent of the time when stock certificates were kept in a shoebox and sometimes just lost. Impenetrable security
Do you still find the location of the digital Portfolio</div><div class=glossaryItemBody>The collection of securities such as stocks or bonds (and others) within a certain asset (portfolio).<br/></div>” href=”https://debeleggersgids.be/woordenboek/portefeuille/”> portfolio? Then that is no guarantee of success. Cryptocurrency has been specially designed to guarantee the best possible security. After all, with cryptocurrency you are the bank yourself and you can use some security tools. All transactions take place anonymously, multiple layers of security shield the cryptocurrency from the outside world and the system uses various protection codes. For example, there is the ‘public key’, with which transactions can be sent, and the ‘private key’ to consult the digital wallet. Without that private key, the next of kin will never be able to consult the digital wallet. They can legally claim that portfolio – then no one else can claim it – but use it? That doesn’t work. Not to mention the Budget</div><div class=glossaryItemBody>An ordered view of all estimated income and expenses. In other words, it is not about actual revenues or costs incurred, but about a predetermined estimate that should reflect future reality truthfully. The government draws up an annual budget in which it tries to find a balance between the budgeted costs and the expected income from, among other things, taxes.<br/></div>” href=”https://debeleggersgids.be/woordenboek/begroting/”> budget and the determination of the inheritance tax. Solutions
When we read a manual about starting up a crypto wallet, a lot of attention is paid to the practical security side and the great benefits of crypto coins. Know that if you take on the role of bank yourself, you should also think about everything. Hardware storage? Then you should take out a good insurance. Do you want to transfer your estate? Then you have to take measures. Admittedly, it is very difficult to arrange things properly, especially because the practical and legal world does not seem to be quite ready for it yet. Nevertheless, you can shape your legacy in advance. You can do this in two possible ways:
- You can record the transfer of the private key in a will. In that will you indicate the location and the consultation method. The second is particularly important. Such a will can be written in hand, but even then it is best deposited with the notary and the Central Register of Wills. The cost of this? Between € 150 and € 250. Not bad for a portion of security.
- You can use special commercialized services. These are services that store the access codes and can transfer information to the next of kin. Keep in mind that these service providers are bound by less strict legal rules than, say, traditional banks. There are already countless stories in which the surviving relative, on the basis of transactions from the testator’s bank account, has to find out where the crypto wallet was located. In this case, too, it is therefore advisable to note this in your will.
Read more: Bitcoin – Alternative or risky investment?
The ideal? A combination of both methods. Do you store the cryptocurrency hardware-wise? Then you need to keep it in a safe place. We immediately think of a Bank Vault</div><div class=glossaryItemBody>Safety that is rented in the bank and in which valuable objects such as money, jewels, gold or notarial deeds are stored. The credit institution insures the contents of the safe against theft or damage, which means that it offers more security than a safe that is located in a home. <br/>To access the bank vault, the tenant needs a key, identification card and a secret code. It is also possible to give a third power of attorney to access the trunk room and the safe. The data is always recorded in a special access register, but otherwise privacy is guaranteed by not hanging cameras in the trunk room.<br/>The contents of the bank vault serve as collateral for payment of its rent. Upon death, the bank vault is opened together with the notary and an inventory is drawn up. It is therefore often recommended to store a will in a bank vault, as it always surfaces. The disadvantage of a bank vault is that the entire contents are included in the estate and that inheritance tax or inheritance tax is therefore due on it.<br/></div>” href=”https://debeleggersgids.be/woordenboek/bankkluis/”>bank vault, but possibly it was just the same bank that you wanted to eliminate in the entire payment process. Cryptocurrency doesn’t get any easier when we think about it practically. And what about the tax authorities?
Simply providing information in a will can be useful, but ultimately the total estate must also be budgeted. The exact value of a private key in a will? It is very difficult to just put an amount on it. When a third-party service has been used, it will usually be able to provide support. In the other case? Then it is best to work out a procedure to ensure that everything can run very objectively.
Remember: where anonymity throughout life is a huge advantage, at death it is precisely the pain point of cryptocurrency. However, the message is clear: if you trade in cryptocurrency, you better go to your notary and put things on paper.