However, have you ever thought about what will happen to all that money you’ve made in crypto when you have passed away? Where will it go when you are no longer around? Who can lay claim to your crypto assets when you are dead? 

Everyone knows that when you have passed away, your assets and properties will go to your next of kin in Malaysia. Whether you have a will or not, your next of kin will get it regardless of how long they have to wait for it. The only difference is whether you have a will and/or will or not. 

For crypto, it works almost similarly. Read on to find out more about where your crypto will go when you have passed away. 

Having a will 

Having a will can make things easier for you when you have passed away. If you have one, you can put in whatever assets you have there. When you have passed away, your named beneficiaries will get a cut of that distribution. That’s how wills work, generally. 

It’s the same thing here with cryptocurrency. You can list your crypto in your wills so when you’ve passed away, your beneficiaries will get whatever profit your crypto is valued at that point in time. 

It’s said that there are billions of dollars worth of unclaimed crypto assets left unclaimed according to this article by New York Times. 

In order to include your crypto in your will, it’s best that you include the private keys to your crypto in it. Let your lawyers know where you keep your cryptos and how you store them. Do you store them in cold wallets or hot wallets? Because those 2 wallets have different ways of accessing your cryptos. 

Prepare a set of instructions for your next-of-kin for inheriting your crypto assets 

Not everyone is tech-savvy, including some of your family members and relatives. What that happens, it’s quite likely they have no idea how to access your crypto accounts to get the money you’ve left behind. 

With that in mind, a lot of people are advised to leave behind a set of instructions for their non-tech-savvy family members. List down a detailed list of instructions for your relatives and family members on how to withdraw your crypto money at a later date. They will thank you later. 

Some people leave instructions in a notebook and stash it away in a safe space. In your instructions you should have the following vital information: 

• Where you store your cryptocurrencies
• The passwords and keys to your crypto wallets and accounts
• Get and assign a digital executor to delegate your crypto
• List your crypto assets in your will and specify who gets what 

Is crypto subjected to the same foreign asset tax treatment in Malaysia? 

This is a common question asked by many crypto miners and is a valid one at that. In some countries like Australia and the UK impose capital gains taxes on cryptocurrencies. Malaysia does not, apparently, according to The Malaysian Reserve news published on LHDN’s website. 

In summary – the article says that cryptocurrencies are volatile and unstable. It’s not a controlled currency like your typical MYR, GBP, USD, etc. That means no countries control cryptocurrencies, making it not recognizable as a legal tender currency anywhere. Not officially, at least, though there are some stores that accept crypto as payment. Therefore, cryptocurrencies are not taxed in Malaysia for now. 

Conclusion 

Cryptocurrencies may not be recognized by the Malaysian government. However, it does not stop Malaysians from trading it online. Just remember that you have everything prepared and listed in your wills – while you are alive, of course. Don’t wait till it’s too late and when you have passed away. If you have, your next-of-kin will have a hard time trying to retrieve your profits when you are no longer around. 

It’s no secret that Malaysians do own cryptocurrencies in various figures. A lot of Malaysians have bought cryptos for many years. However, what happens when you have passed away? What will become of your cryptocurrencies then? 

It is advisable for all Malaysians to have a will first and have it updated periodically. If you don’t have a will yet, it’s good to make one and have it validated. If you already have one, make sure you review it periodically. 

Assuming that you already have an existing will, then things will be much easier for you and your relatives. If you own cryptocurrencies, you can easily just list it in your will – no problem at all.  

Listing your cryptocurrencies in your wills 

Though listing and including your cryptocurrencies in your wills is as easy as a piece of cake, then how do you go about doing it then? Here is what you should do when it comes to listing your cryptocurrencies in your wills. 

1. Mention where you have cryptocurrencies at 

There are so many cryptocurrency platforms around. You’re bound to have (in the very least) 1 account on 1 platform. Or you may have several accounts spread across several different platforms. List all of the accounts you have on every platform you are on. 

Then, list down the passwords and keys to your cryptocurrency accounts. Cryptocurrencies are not like jewelries and houses. It cannot be seen and touched. In your will, you should clearly describe your cryptocurrency and where to find it. 

2. Digital wallets 

When you have cryptocurrencies on any platform, you are bound to have an electronic wallet or a digital wallet. The digital wallet is for you to store your cryptocurrencies. Like the platforms, you should list your digital wallet down. Include the passwords and Login IDs too. 

Digital wallets are often accessible via computers or smartphones. It often requires certain devices to be able to access. Include these devices in your will so the key elements stay together until your beneficiaries are able to access them. 

3. Create passwords and PIN memos in your wills 

When you have passed away, security access to your cryptocurrencies will be an issue. It is understandable that as crypto owners, you may not feel comfortable sharing this information. However, putting them down in your will for your beneficiary will be a good idea. 

You can create a memorandum, which is a separate document from the will, and list security information in it. Then, in your will, reference this memorandum so your beneficiaries are able to access it. 

4. Make a step-by-step access guide 

Not everyone knows how to access and use a cryptocurrency platform. Some people are not very tech-savvy. In order to help any beneficiary that is not tech-savvy, you should come up with a step-by-step guide to help them access the platform. 

In the step-by-step guide, explain how to access your cryptocurrency. Include in it your passwords and PIN numbers. Though some beneficiaries are already familiar with cryptocurrencies, they may not be familiar with how to access your cryptocurrencies. 

When preparing the step-by-step guide, assume that your beneficiaries are not tech-savvy and know nothing about it. 

5. Other things to consider 

Not every beneficiary may be comfortable with cryptocurrencies. With the provided instructions, they may have a hard time navigating the process. Some people may suggest leaving the value of the investment rather than leaving them cryptocurrencies instead. 

If that’s the case, it will need the estate executor to have technical skills to exchange cryptocurrencies for traditional cash. Worst case scenario is to hire an estate administration attorney who has experience in dealing with cryptocurrencies. 

If privacy is your concern, you can also put your cryptocurrency into a trust. A trust can help keep your cryptocurrency out of probate and can help keep information about your coins. 

Conclusion 

Putting cryptocurrencies into your wills is not necessarily a complicated matter. With step-by-step planning, you can put together your cryptocurrencies and have them listed in your wills or trusts.

Contact us today if you have any queries on the above.