E232 How Crypto Transfers at Death

<p>Let’s answer a crypto question from Haille: How does crypto transfer on death?</p> <p>We’ve covered this topic in episodes <a href= "https://anthonyspark.com/e214-transferring-bitcoin-upon-death/">214, <em>Transferring Bitcoin Upon Death</em>,</a> and <a href= "https://anthonyspark.com/e222-beneficiary-designations-for-cryptocurrency-exchanges/"> E222, <em>Beneficiary Designations for Cryptocurrency Exchanges,</em></a> but we’re happy to answer Hallie’s specific questions here.</p> <h2>Is the will required to be probated if the beneficiary of the will has access to the Coinbase holder's account?</h2> <p><img class="aligncenter size-medium wp-image-10735" src= "https://anthonyspark.com/wp-content/uploads/2021/08/Is-the-will-required-to-be-probated-if-the-beneficiary-of-the-will-has-access-to-the-coinbase-holders-account-300x200.jpg" alt= "Is the will required to be probated if the beneficiary of the will has access to the coinbase holder's account?" width="300" height="200" /></p> <p>Yes, to legally access that account, you must probate the Last Will and Testament of the decedent.</p> <p>Individual <a href="http://coinbase.com" target="_blank" rel= "noopener">Coinbase</a> accounts do not have beneficiary designations. (Most major exchanges don’t; this is not specific to Coinbase). A formal beneficiary designation means that it is technically your account, but that is not the case here. You need to submit letters testamentary and death certificate to Coinbase, and they will grant access to you.</p> <h2>Could the beneficiary simply transfer those funds to themselves?</h2> <p><img class="aligncenter size-medium wp-image-10736" src= "https://anthonyspark.com/wp-content/uploads/2021/08/Could-the-beneficiary-simply-transfer-those-funds-to-themselves-300x169.jpg" alt= "Could the beneficiary simply transfer those funds to themselves?" width="300" height="169" /></p> <p>Technically, yes, but it could lead to legal problems.</p> <p>This is substantially similar to dealing with a traditional bank/brokerage account. Like a