Setting a TOD beneficiary for your Unchained personal vault can simplify inheritance.
A transfer-on-death (TOD) beneficiary is an individual or entity you designate to receive your bitcoin when you’re gone. For personal vaults, TOD beneficiaries are optional. For IRA accounts, setting a beneficiary during the initial application is mandatory. The beneficiary has no rights concerning the account during the owner's lifetime. For more information, visit our blog post on TOD beneficiaries.
Tip: If you are ready to set beneficiaries, see our guides How do I add or update my personal vault beneficiaries? and Who can I add as a beneficiary?
TOD beneficiaries typically bypass probate.
Designating a TOD beneficiary can simplify the inheritance process because TOD accounts are generally excluded from state probate laws. This enhances your privacy by keeping your bitcoin out of the public probate records. Having a TOD beneficiary also overrides other estate planning tools like wills.
You may designate a trust as the TOD beneficiary, but the bitcoin remains titled to you individually until you pass. Unchained does offer trust accounts, which always remain titled to the trust. You should consult with an attorney or estate planning professional to ensure your choices are consistent with your estate and tax planning objectives.
Beneficiary designation makes the process easier and faster.
Unchained will have your beneficiary's full name, phone number, and email address. This helps us give the proper access to the right person more quickly. Without a beneficiary designation, it would take longer for us to verify their identity and legal documents before granting access to the account. For more information on the inheritance recovery steps, visit our Estate Center.
Beneficiaries still need access to one of your keys.
Because your bitcoin is secured by keys, your beneficiary should have knowledge or access to one of your keys. Consider using the Unchained Inheritance Protocol as a guide to assist.
Note: No contents of this post may be relied upon as tax, legal, or financial advice, as they have not been tailored to you and have not been reviewed by any attorney, financial advisor, or tax professional. For any questions related to your own specific situation, please consult with your own attorney, tax professional, and/or licensed financial advisor.