The digital era presents new challenges in inheritance law. Georgia, being a crypto-friendly country, has become a hub for digital asset management for many investors. However, unlike bank accounts and real estate, cryptocurrency (Bitcoin, Ethereum, etc.) is not subject to automatic inheritance transfer through traditional means. If an owner passes away without leaving access codes (Private Keys), these assets are lost forever. Crypto Estate Planning is an innovative legal service that ensures the secure transfer of your digital wealth to heirs while maintaining confidentiality and ensuring access is not lost.
Georgian legislation does not explicitly regulate "crypto wills," but general norms of the Civil Code allow digital assets to be considered intangible property benefits. The lawyer's role is to create a legal and technical mechanism that will be understandable and enforceable for the notary and heirs, taking into account cybersecurity risks. Legal.ge allows you to find specialists who understand both inheritance law and blockchain technologies.
What Does Crypto Estate Planning Service Cover?
This service combines legal and technical consultation:
- Digital Asset Inventory: Creating a complete list of crypto wallets, exchange accounts, and NFTs (while observing security norms).
- Will Drafting: Developing specific wording in the will that covers digital assets but does not reveal private keys (to prevent theft when the will becomes public).
- Access Transfer Mechanism: Using a secure "digital vault" or a trusted person (protector) mechanism to transfer access codes in case of death.
- Legal Consultation with Exchanges: Preparing instructions for inheriting funds held on centralized exchanges (e.g., Binance, Coinbase), including KYC procedures.
- Tax Planning: Explaining tax obligations to heirs upon receiving and cashing out digital assets.
Common Real-World Scenarios
Loss of crypto assets often happens for banal reasons:
The first scenario is the "Lost Key." A person held a large sum on a "cold wallet" (Ledger/Trezor). They died, and the heirs found the device but do not know the PIN code or the 24-word recovery phrase. As a result, the funds are inaccessible.
The second case is exchange blocking. Heirs try to log into the deceased's account using their password. The exchange's security system detects suspicious activity and blocks the account. Unblocking requires complex inheritance procedures.
The third scenario is a breach of confidentiality. A person wrote their crypto wallet password directly into the will. The will was opened by the notary, read by heirs and attendees. Information leaked, and the wallet was emptied before the heirs received it.
The fourth situation is ignorance of assets. The family does not even know that the deceased owned cryptocurrency. Without an inventory, these assets simply "disappear."
Georgian Legal Framework and Regulations
Crypto inheritance is regulated by general civil norms:
- Civil Code of Georgia (Inheritance Law): Recognizes all property and non-property rights of the deceased as inheritance. Although cryptocurrency is not "money" in the classical sense, it is an "intangible property benefit."
- Law on Notaries: Defines rules for drafting and storing wills. For crypto assets, the institution of a closed will is particularly important.
- Data Protection Regulations: Crucial for ensuring the security of access codes.
Process and Stages
Planning begins with an audit — where and in what form assets are stored. Then the lawyer and client choose a strategy. If assets are on an exchange, legal instructions are prepared for heirs. If assets are on a private wallet, a multi-layered security system is created (e.g., part of the key is kept with the notary, part in a bank safe, or Multisig technology is used). A will is drawn up referencing these assets. The goal is for the heir to be able to legally and technically gain access after death.
Why Legal.ge?
Traditional lawyers often do not know what a Private Key or Seed Phrase is, putting your assets at risk. Legal.ge gives you access to modern lawyers who speak the language of technology and can ensure the safety of your digital inheritance. Plan today so your investment is not lost tomorrow.
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