Better Now as a Gift? | Cryptocurrency Inheritance Planning

24 Oct 2023

You have made it! Our most sincere congratulations.
After years of smart trading and HODLing crypto, you have accumulated a considerable portfolio.
You have wisely navigated through the crypto space and avoided falling for scams, hacks, and accidental losses of wallets and crypto assets. 
You are a PRO and your crypto portfolio is secure, safe, and keeps growing. 👍👍👍
But NOW IT IS THE TIME to start thinking about your loved ones and how they will benefit from all your efforts if something happens to you.
And, would it not be great if your loved ones could enjoy tax-free crypto instead of having to pay inheritance taxes?


How is Gifting Crypto Taxed Around the World?

You need to do your own research but, as a start, you may want to read the article 'Tax on Gifting Crypto' by Koinly.
This is a short extract from the information presented in the article, plus the feedback from one of our reader who lives in Australia and made us aware of the gift tax regulations in his country:

How are Crypto Gifts Taxed in US

You can gift up to 17,000 USD, tax-free, per family member or friend. 


How are Crypto Gifts Taxed in the UK

Gifting crypto is taxed in the UK but there are some allowances for the spouse and civil partners.


How are Crypto Gifts Taxed in Australia 

In Australia, the first $14,000 is gift tax-free.


How are Crypto Gifts Taxed in Canada

Gifting crypto is taxed in Canada


How are Crypto Gifts Taxed in Germany

You can gift up to 500,00 EUR to your spouse and 20,000 EUR to friends


How are Crypto Gifts Taxed in France

You can freely give crypto to family and friends without paying tax

Crypto Gifts Vs Crypto Inheritance

You should consider having a solid crypto inheritance plan so your loved ones will receive your hard-earned crypto if something happens to you.
The worst in can happen is that suddenly you are not between us anymore, and your crypto assets are lost forever because nobody knows the extent of your crypto portfolio nor has access to your private keys.

Crypto Gifts Advantages and Disadvantages


  • In some countries, crypto gifts have lower or no taxes. A much better option to crypto inheritance.
  • You still have time to educate your loved ones: You know how to use a crypto wallet, and how to exchange crypto and fiat,...but there is a good chance that your loved ones know between nothing and little about those topics. 


  • Your loved one will have to include the crypto assets in the next tax declaration. (but, the positive side is that you are still there to guide them)
  • Once you have gifted the crypto assets, you will have fewer assets to invest (but, in some cases, the positive side is that you can mentor your heirs and grow their portfolio)

Crypto Inheritance Advantages and Disadvantages


  • You control your crypto assets: You can always change your mind until the last minute and update your will. 


  • Higher taxes in most cases. Your heirs will have to pay a considerable amount of taxes so part of your portfolio is 'gifted' to the tax office.

Do not wait too long - EDUCATE YOUR LOVED ONES

Regarding what is your decision, do not wait.
Now is the time to educate your loved ones about crypto. And describing to them what to do in case you suffer a fatal accident.
They must know what crypto assets you hold and how to retrieve them even if you are not around to guide them.
Congratulations on completing this 5-minute digital safety power-up.
This article is just a 5-minute summary.
Now, this topic may not be for you or not.
If you are not interested, we are glad that we have only taken 5 minutes of your valuable time.
If you are interested in learning more, the following articles may be of interest:
Cryptocurrency Inheritance: 5 Steps to Secure the Future for Your Loved Ones
How to Easily Keep Track of Your Crypto Taxes
For more short but important articles about Crypto Safety topics, please consider subscribing to our blog.
Article originally published at Publish0x

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Crypto inheritance will become a major aspect of the industry that would need more planning
Great info and Article..
Nice and interesting article. Thank you
how about we just transfer the assets to DID address in app only is doing something like this have meet there team few months back poject launching is in delayed tho dont know whats happening
So I just went through this in Australia, and I can say with 100% accuracy: There is no inheritance tax nor is there a gift tax. This a common misconception that is surprising widely held despite the information being readily available on the ATO (Aust Tax Office) website and from any tax advisor. What there is is a limit to how much you can gift and have it not affect your assets test for social security payments. That's the limit you've referred to here. Even then it's hardly punitive. You'll only ever do that asset test once in your life and the absolute most it will delay payments is like 30 weeks. And you have to have a lot of assets to hit that upper limit.
Very informative. Thanks for sharing this. I had no idea gifting in the us and Canada is tax free up to a certain amount.
Great info on crypto taxation
please mention it for India too. Will be of great help.
The Inheritance Effect is the result of short-sightedness—undervaluing the emotional and psychological factors that will play out for members of the next generation within themselves and the business. First, a gift can distort the psychological power of ownership.
Nice. I am going to file this away for future needs...
Hmmm. This is interesting. We must be talking about centralized exchange for the related government to know how much we send and received. Isn't it? That makes anything made on chain (without the KYC ones) is still private. This tax thingy still eludes me. lol. Anyway thanks for the info!
this techniques makes crypto world on a extra ordinary level
Good to know it. I wish someone would like to make me a gift
great post
I really enjoy your article. Thanks for sharing