Better Now as a Gift? | Cryptocurrency Inheritance Planning
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
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Article originally published at Publish0x