Hypothetical: What happens to crypto assets on CEX when the owner dies?

[WeThePe0ple]

I am a tax resident in one of the worst countries on earth, in terms of income tax.
My portfolio has done a 3x after 1 year of crypto investments, and a local tax expert says that I could be taxed at least 33% on profits if I am not declared professional by our IRS agents. He has seen cases with over 50% tax as well. I am going to meet with the expert to discuss offshore options to avoid taxes legally. But most of those options require me to leave the country and quit my job, which is not an option right now.

My fiancé and her mother are from Brazil. It is not particularly a tax paradise but it's not as bad as my country either. I have read that taxes are between 15 and 22% there.My fiancé, despite being from Brazil, works in my country and is now a tax resident there.
Her mother (approaching 80 years old) is not.

Therefore I consider putting my crypto assets on a crypto account that I make for her (she needs to go through KYC), by depositing my stablecoins so there is no bank payment trail to her account. I could buy and sell in her name (with my own funds), while I manage the passwords for her. I don't expect Brazilian tax agents to find out that she owns crypto, as long as we don't cash out to her bank account. I intend to never cash out, and pay for goods and services directly in crypto.

However what happens if she unexpectedly passes away? Are the assets on the exchange just lost? I don't know if exchanges like Bybit require facial recognition for crypto withdrawals once KYC has been completed. I can just withdraw the crypto assets from her CEX account, to my hardware wallet.

I don't like the idea that I would be "using my mother in law". But if she gets to live another 10 years and the government finds out that she should have paid taxes 5 years post mortem, I don't think they can still demand taxes from a person who is no longer alive. They also do not know who the real owner of the hardware wallet (me) is.

I can imagine that most of you really don't like the idea. But I do wonder how I can avoid the tax destruction.
I also considered using anonymous crypto swap platforms like changelly. Then I wouldn't have to involve other people.
But these platforms seem shady and I am worried about losing all my coins.

[Ucy]

It all depends on whether it's right to have your crypto income taxed in that manner. There are probably income taxes that are deserved while others are likely not.   If yours don't deserved to be taxed then it may be OK to dodge the taxes, but I would prefer to trade on my own account on decentralized exchanges instead of another person's account on centralized exchanges.
And there are many ways to trade/swap crypto without going through instant exchanges like changelly. Certain VM/smart-contracts Cryptocurrencies have stablecoins, and tokens that are pegged to major crypto like Bitcoin, Litcoin, etc. You can take advantage of that and trade on them as long as the cryptocurrencies and their pegged tokens are decentralized or safe to use

[Ucy]

It's important to note that when it's time to use the crypto for goods and services, you could search for decentralized marketplaces that allow you to buy mostly from local peers. But I'll suggest that this be done after you have determined whether your crypto incomes deserve to be taxed or not, so that you have no guilt or tax issue.

By the way, if your country doesn't treat well or you don't like it for being unfair, you could consider forming or searching for online and/or offline autonomous Bitcoin/crypto communities to join or trade goods and services with. The communities would somewhat need to be global and self-sustaining in terms of goods and services. It easier to collaborate with global communities to build different kinds of stuff a community needs than just being local.