E245 What Happens to Your Crypto on Exchanges When You Die

<p>One of our listeners recently asked what happens to your crypto on exchanges when you die. How will his spouse or kids get his crypto when he dies? Our listener has roughly $500,000 in Solana, Ethereum, Bitcoin, Shiba inu, and Doge, held on exchanges: <a href= "http://Coinbase.com" target="_blank" rel="noopener">Coinbase</a>, <a href="http://Crypto.com" target="_blank" rel= "noopener">Crypto.com</a>, and <a href="http://EToro.com" target= "_blank" rel="noopener">EToro</a>.</p> <h2>Inheriting from crypto exchanges is similar to banks</h2> <p><img class="aligncenter size-medium wp-image-27622" src= "https://anthonyspark.com/wp-content/uploads/2021/11/Inheriting-from-crypto-exchanges-is-similar-to-banks-300x167.jpg" alt="Inheriting from crypto exchanges is similar to banks" width= "300" height="167" /></p> <p>Just like a bank or brokerage, you submit death certificate, letters form the court appointing the estate’s representative, claim forms, etc. Then the exchange will process the claim – sometimes slowly. Sometimes they won’t know what they are doing, and you’ll have to lead them by the nose. (This happens even with traditional banks and brokerages). Sometimes the customer service representative tells you that you need certain forms, and you spend a couple of weeks preparing the forms. Then after submitting the forms, another representative tells you to submit something different. This is all too common.</p> <p>The result of this process is that your administrator or executor will have access to your crypto through the exchange account. However, it is still unclear whether an executor will collect the crypto in-kind (having the actual coins transferred to your executor) or if the crypto will be liquidated (cutting a check to the executor). My instinct is that it will be distributed in-kind. This matters, because receiving coins in-kind means the executor needs to know what to do with them.</p> <h2>Make sure your heirs know the crypto exists!</h2> <p><img class="aligncenter size-medium wp-image-27623" src= "htt