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Read examples of people gone and they never gave their family or relatives their keys to their crypto. How do most of you handle this? Now if you have everything in your nano ledger s or trezor or even electrum for example, well you give them the 12 or 24 word seed and they have it. Now i thought of some issues. What if they dont know how to operate a computer? Who do they turn to? Are there bitcoin services where when someone is gone, their family or relatives go to that service and say this is the code or phrase for the crypto and they mention if its stored in a hardware wallet or exchange or electrum etc and have that service get their crypto for them for a price? Like it will cost $100 or $500 for the service? Such as they would then transfer the crypto to the family's own wallet or contact the exchange and have them set up the crypto to be sent to their family member's account?
1. If you know about crypto, and you have a family that you trust, then start with educating them about cryptocurrency and basic stuff about computer. It is not that hard to teach them how to manage seed imo.
2. If there's no relative who can operate a computer, and it is not possible to teach them how to do it, then the best option is to cash out your crypto once in a while and transfer the money to their account.
3. I think there are some services like that, but I personally won't trust anyone outside my family except if we can use multi-sig. Unless you can access a store vault in Swiss which values privacy and personal matter a lot.
The other issue comes then is taxes. Most likely that person who has crypto stored most likely did not pay all or most or any of the taxes assuming they were holding for a long time. Now if they paid all the taxes, well you could transfer the money to the family member but there is only a certain limit they can transfer a year without taxes i believe right? This is concerning ppl in the US Now what if that person paid taxes on some of it or none of it. Well the family can't just take the money into their bank account since that person didn't pay any or entire taxes of it. So how in the world would that work then? Because when you file taxes on crypto, it needs to be written down when was the coin bought and sold and at what prices. The family or relative wouldn't have a damn clue about it. They also wouldn't know when they got it and say that person was a trader, they wouldn't have access to say the 500 or 1000 plus transactions that person did etc even if most were basically buying bitcoin and selling it for altcoin immediately since most altcoin you can't go from altcoin to usd or usdt etc.
Can't comment regarding taxes as it differs in each country.
Does anyone have experience or tips on this? I think leaving crypto behind in a hardware wallet is the easiest right? But what if some were in an exchange like bittrex or binance? Do they contact bittrex or binance about it and then send in the paperwork? Of course they would need that person's binance or bittrex email address and that person most likely had 2FA. How does that work then? I assume coinbase probably would be the easiest to work with? Now let say that person also had their own wallets in their computer like for example bluecoin or greencoin where its not compatible with hardware wallet and they have some of these wallets on their computer. Now if their family has the seed or phrase for this, they can claim it but if they have no clue how to do this on computer, are there services that allow this? So imagine someone has crypto in their trezor or ledger and some in computer like bluecoin and greencoin and some in binance and coinbase. Are there services that would help them recover all these for a fee? Thus they would help that family email binance of coinbase assuming that family doesn't even know how to use computer? Such as that person left behind a paper that says
You should never leave your crypto in exchange in the first place. If it were me, I'd always withdraw all crypto from exchanges, saves all seeds/password etc in a safebox with key and I'd tell my wife or kids how to manage it. But if such case like that happened, then your best best is to contact exchange support and proving that the original owner is dead (good luck with that).
Also a related question. But if someone has your bittrex or binance secret code, they can't reset your device right or they could just by having that? Or they need to know at least your email address at least?
They can access your 2FA. If they know your password & 2FA code plus email address (+its password), they can reset it. But I believe some exchange also requires SMS verification on top of this (depends on your settings tho).
IMO all of your issue is easily solvable if we can:
1. Teach our family about crypto and computer, at least on how to use it to manage crypto asset.
2. Prepare the backup/key/seed and save it in a safe place for them.
I really like your opinion about this. Also There are ATM for withdraw the money. We can also make a step by step note for our families and friends so that they can take help of other people they trust that will be also good for their future lives. We should keep safe backup for them. We should make small amount investment in crypto currency. We can also invest in other crypto currencies like litecoin and afcash etc.
