Page 13 - CBI Magazine_August 2021

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Legal & Education Desk – CBI Global
NOTICE: PROVIDE YOUR LOVED ONES ACCESS TO YOUR CBI WALLET (ACCOUNT)
Dear CBI Member,
While it’s easy to hand over the reins of a physical asset in the event of an emergency or death, it’s not as simple with digital assets. When someone dies, they either have a will that dictates how their assets will be distributed, or, if they die without a will, a government formula outlines how their assets will be divided. While a will outlines who should receive what, it typically doesn’t have an up-to-date asset list, nor does it contain passwords or access keys. There are estimated, tens of billions in unclaimed assets, sitting in banks today because of an executor or family not knowing about those accounts, following an individual’s death. However, an executor can do due diligence by calling financial institutions to double-check whether the person held accounts and get access to those funds, which typically requires providing copies of the will and/or death certificate. With digital assets, it’s not as simple as calling the bank and finding out if a relative or family member had crypto asset investments with a particular platform.
It is a well-known fact that there is no directory or central body that governs cryptocurrency — it’s purposely decentralized, which is great for privacy but less than ideal for family members who want to figure out if someone held valuable digital assets. In the case of all CBI Association members, shareholders, directors, management, employees, representatives, agents and/or independent service providers, unless the deceased member specifically gives instructions or has directed (dictated) / or specifically bequeathed, in a valid will, how his/her crypto investments (assets) in CBI should be disposed of and/or distributed and/or managed by his Executor or nominated nominee, relative, friend or family member, the digital asset/s is/are inaccessible. CBI, intheabsenceofavalidwillorinstructionsfromamemberdictatinghowthe cryptoinvestments (assets) should be dealt with, will only accept instructions from an Executor appointed by the Master of the High Court, who can “lay” claim or lawfully instruct CBI on how to go about such crypto investments (assets).
However, should the direct beneficiaries be the surviving children and spouse of the deceased, then we will require a mandate signed by all beneficiaries and the nominated Executor, including a formal instruction to CBI requesting CBI to make available the crypto investments (assets). We will also require an indemnity form to be signed, in this regard, against any claims or legal proceedings against CBI once the crypto investments (assets) have been paid out. In exceptional instances the Board will consider the unique circumstances, case by case, and make decisions accordingly. In this regard members can motivate their unique circumstances and factors that CBI should consider. Below is a Step-By-Step Guide that we recommend CBI members follow and/or consider.
Step-By-Step Guide
1. Use a password manager to store all of your financial accounts’ information, including usernames, passwords and private keys to your digital assets. Share your master password with someone you trust and store it with your will.
2. Use a digital wallet (web-based or hardware) or digital exchange to store and manage your Bitcoin and other crypto assets. You can give your family access to your wallet, or the exchange may have a death-management process.
3. Create and maintain a list of your financial assets and give access to your executor or a trusted family member or friend. Remember to review and update your list annually or whenever you acquire new digital assets.
4. Create a will instructing on how you want your crypto assets to be distributed.
In addition to the above, CBI will, in its next publication, issue specific rules, terms and conditions to be accepted by all CBI Members on what steps and measures all members are expected to take, in order provide their loved ones with access to their CBI Wallet (Account) when a member dies. This includes those members or individuals managing accounts on behalf of CBI members.
Best regards,
The CBI Team
www.cbiglobal.io
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