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August 29, 2022

How Has Blockchain Technology Revolutionized the Estate Planning Process?

Digital currencies have allowed investors to plan their estates with ease. If you want to secure your investments for your family, it would be wise to educate yourself on the blockchain, as it is vital in shortening the process of writing a will.

When you register your will, trust, or estate on a blockchain like the "Proof of Existence" or "Blockchain Apparatus," you can easily negotiate the legal issues pertaining to executor duties. This makes it easy to liquidate and distribute the assets to the heirs.

How Is Blockchain Technology Influencing Estate Planning

The reason many parents are using blockchain technology to secure and plan their estate is that it allows the following:

Self-Execute Registration

When you secure your estate, will, or trust documentation with blockchain, it is easier to modify the content. This is because, using the platform, the Blockchain Apparatus allows the estate holder to create a will without the help of an attorney or a real estate planner.

Wills and Estate Settlement Safety and Modifications

Death is a grim topic that many don't like delving into, but it's unavoidable that we all shall face it. Therefore, parents must plan ahead for the future of their children. Blockchain technology allows parents to write their will and plan their estate to avoid conflicts upon their passing.

Traditionally, people used lawyers that make wills, specifying how their estate was to be divided. However, these documents could get lost amidst their files and leave your heirs uncertain of your final wishes. Others failed to honor your wishes as many wills were written years before the deceased's passing and failed to include recently acquired assets.

And don't forget that the estate executors and lawyers are also paid from the estate, which reduces the final amount the heirs receive. For that reason, many opt to use blockchain technology as it guarantees data security; the platform is highly encrypted and rerouted through various channels for protection against hackers. Using blockchain technology, estate holders can easily modify their wills, estate, and trust to include their recent acquisitions.

Using blockchain technology, heirs can make inheritance decisions via smart contracts. Not only does this smooth the execution of the will, but it also eliminates the need to pay lawyers and estate executors, as everything is done in-app, from liquidating assets to distribution.

Blockchain Knowledge and Access

The most important aspect of estate planning using blockchain is ensuring that your estate executor knows all about your assets and how to access them. The execution stage is the most challenging for an executor as you'll need keys and access codes for the digital assets.

Crypto investors strictly store their keys and access codes because if they fall into the wrong hands, that's the end, as people can transfer their entire portfolio, leaving them with nothing. And if they happen to lose them, then there is nothing they can do, and they risk their crypto tokens sitting idle in the account.

That's why crypto investors are advised to write down the keys and access codes for the heir and executors. You must write everything, from the kind of assets you have, locations of the keys, and access controls, such as passphrases and PINs.

Blockchain Estate Settlement

After the passing of an estate holder, there is the question of who is to manage their estate. If you own crypto assets, the big question is: will your estate executors and lawyers know what to do and how to transfer the digital currency to your inheritors? And even if they do, do they have access to the keys to your digital wallets?

If you own crypto assets, you can only access them using the codes provided upon registration. If you happen to lose them, then your assets will sit idle. The same applies to your lawyers; unless you give them the access codes, they will not be able to get into your digital wallets.

The best way to ensure that your assets are correctly distributed to your heirs is to write a detailed plan. You can use Blockchain registered wills and smart contracts to transfer the assets automatically after passing, thus ensuring that no third parties have access to your keys to conduct the transfers. The execution is carried out on the Blockchain Apparatus along with other final wishes.

You are advised against giving your keys to third parties as you don't know what they will do;  the government does not regulate blockchain technology.

Resting Place Management

If you don't want your family to go through the hassle of organizing and managing your final resting place, you can use blockchain to handle matters related to your grave and burial as well.

Using Blockchain technology, you can register your grave location. There is no data on the web to determine where a person is buried; most often, only family members know. Still, it's almost impossible for family members to locate the graves of people who died several decades ago, especially if buried in a public cemetery.

However, if people start recording their burial places using Blockchain technology, it will be easier to locate someone’s grave in the future. This information could be beneficial to genealogists as it helps them determine who was buried where and when is the best time to move the grave. They will also be able to notice when a tombstone disappears.

Using blockchain, people can continue maintaining the tombstone in excellent condition. For instance, those who have moved abroad can use smart contracts to hire people to ensure the monuments are kept in pristine condition.

Blockchain Platforms to Use For Estate Planning

Real estate holders could use various blockchain platforms to register their will and estate. These include Proof of Existence and Blockchain Apparatus. These allow people to register any documents and the best part is they are secure, so you don't have to worry about your data being stolen by hackers. "Will and Testament Coin" is another popular blockchain platform that allows registration, modification, and execution of wills. However, it has yet to be launched.

Final Thoughts

Blockchain technology has revolutionized estate planning by providing estate holders with an easy way to list all their assets and update them as they make new acquisitions. It also helps safeguard your will as the document cannot be lost since it is stored on the web, and it eliminates the use of lawyers and estate executors, thus saving cost.

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