3 hrs ago

How Indian Families Can Inherit Crypto Assets After Death

What happens to an investor’s crypto assets after his death? · livemint.com

Crypto assets can usually be included in a person’s estate after death.

This means family members may inherit them through a will or succession law.

If the assets are on an exchange, the family can contact that exchange.

The exchange may ask for a death certificate, identity documents and proof of inheritance.

If the assets are in a personal wallet, the family needs the wallet’s private key or seed phrase.

Without that information, the crypto may be impossible to recover.

Owners should make a secure plan and tell a trusted executor how to find the access information.

The keys should not normally be written directly in the will because the will could become part of a court record.

Key facts

Legal status: Cryptocurrency is not recognised as legal tender in India, but it is not generally prohibited from being held or traded.
Inheritance: Crypto assets can generally form part of an estate and pass to legal heirs under a will or succession law.
Exchange holdings: Exchanges generally hold tokens as custodians, and heirs must approach the relevant platform.
Typical documents: Exchanges may request proof of death, KYC documents, probate or a succession certificate.
Personal wallets: Access depends on the private key or seed phrase; assets may be permanently lost without them.
Taxation: The article states that virtual digital asset transfers are taxed at 30%, with 1% tax deducted at source under the cited provisions.
Planning advice: Owners should list accounts and wallets in a will, appoint an executor, and store access information securely outside the will.

livemint.com · 4 hrs ago