How to reduce the risk of losing digital assets?

Our economic and personal relationships are no longer confined to the real world, but extend into a virtual world that is not exactly the same nor quite different. our interpretations.

What is digital heritage?

There is no inheritance for assignment in our law that would qualify for” digital heritage On the other hand, the wealth of companies and individuals includes the digital components.

Then we talk aboutdigital assets who often The value of assets such as cryptocurrencies and NFTs (non-fungible tokens) but also “digital things” more broadly that don’t necessarily have a monetary value like, say, a blog or family photos on a Facebook account.

However, the boundary between inheritance and non-inherited inheritance is thin in the digital world, particularly because of the personal and transient characteristics associated with some digital things.

Thus, the great influencer’s blog will remain a source of income and will retain its value only if its owner remains active. Otherwise, his followers will lose interest in the topic and most likely no value will be attached to it.

This blog may also, under certain circumstances, be considered an intellectual work and therefore be protected by intellectual property law. Conversely, a digital creation that is not registered on the blockchain such as NFTs will have no value because it can be reproduced infinitely without preserving a trace of its originality.

What is the value of artwork in NFT format?

The The value of the NFT, like that of many digital assets, corresponds to a market value that is subject to fluctuations in supply and demand. Market The art of coding It is currently mainly led by Anglo-Saxon countries with auction houses such as Christie’s or platforms dedicated to digital business such as Sotheby’s Metaverse.

In France, this market is new because French auction sellers are not authorized to sell “intangible assets”, of which the NFT is only a part since the February 28 law, which took effect on March 1, 2022. Therefore the NFT valuation remains restrictive in such an indefinite market. The last stable and all.

NFT Crypto Art, collectibles, blockchain transactions and non-fungible tokens embodying an abstract three-dimensional concept. Internet icons futuristic wallpaper.

What value should be used for digital assets at the time of death to calculate inheritance tax?

L ‘NFTs evaluation It is traditionally conducted through a discretionary declaration of the parties possibly supported by an expert report.

However, it should be noted that if the digital artwork is the subject of a specific insurance, the tax authorities may withhold the value of the insurance.

NFT will also be able to enterFixed furniture rating of 5% if it is a decorative piece that does not belong to a groupnot.

L ‘Cryptocurrency evaluation Perhaps it is simpler because there are trading platforms that allow you to keep the market value on the day of death. On the other hand, the high volatility associated with the price of cryptocurrencies can have huge impacts on equity. If the value of the cryptocurrency drops in the days following the death, the heirs will have to pay the inheritance tax calculated on the value of the death when they no longer have the corresponding assets to fund it.

This is amazing The volatility associated with digital assets can also have detrimental effects in the context of a civil settlement of real estate in the event of a neighborhood donation of these assets which is often made with a simple click from one account to another.

If the value of the donated digital asset rises between the donation and the donor’s death, the donor may then have to pay a very important report and/or offset the reduction. On the contrary, if its value decreases, the other heirs will have to restore equality. It is possible to avoid this risk by participating in the donation. It has the advantage of freezing the values ​​on the date of their conclusion, provided that all the compulsory heirs receive a lot and that there is no reserve of usufruct relating to a sum of money.

So anticipating her transmission is key!

Especially because the risk of losing digital assets is very high. If no item is placed upstream, it’s a safe bet that the asset is in a digital abyss on the day its owner dies.

The Holding digital assets has the “dangerous” peculiarity of leaving no paper trail: No account statement or checkbook was left at home to allow grandchildren to see any joint account(s) from a bank.

Certainly, since the law of 28.12.2018, taxpayers are obligated to simultaneously declare their tax return as well as the auditor of the digital assets they own. But digital assets are often acquired through platforms set up outside French territory, against which the tax administration cannot easily exercise its right to contact.

Another predicament, but not the least, Cryptocurrency exchanges as well as the various blockchains on which digital assets are issued, are not required to declare the accounts they host on a registry that can be consulted by notaries, such as the Ficoba and Ficovie files that list accounts and life insurance contracts with banks and insurance companies. Only knowing the heirs of this type of asset can guarantee the inventory.

It is therefore essential to identify all of your digital assets to ensure they are preserved and transferred “easily” to your heirs. Cieleden explains.

But where do you keep your usernames, passwords, and keys?

This would be perfect Everyone makes an inventory of their digital heritage which makes it possible to draw the attention of the heirs and/or the notary responsible for liquidating the successionthe list of various digital assets that can constitute a person’s virtual heritage in the broad sense, such as photos, movies, music, NFTs, cryptocurrency accounts, websites, software or other social networking accounts.

Notaries who act as family advisors and distinguished observers of the development of their clients’ assets are undoubtedly the professionals best suited for preparing this assessment of their assets. They can also ensure that it is kept strictly confidential by depositing it in the digital safe created by the Paris Chamber of Notaries and accessible only to notaries.

Above all, this legacy report may contain access codes, logins, decryption keys or passwords that notaries will keep in complete safety.

This different information can also be mentioned in an original or 3D Will and it is preferable then that it be deposited and kept with a notary after being recorded in the Central File of Last Wills (FCDDV) explains.

There is also a third form of will, the secret will, which is distinguished by its ability to contain typewritten provisions contained in a sealed and sealed envelope to ensure confidentiality. The paper medium, on which decryption keys or even access codes are written, can be used as a basis for stating the testator’s provisions. Therefore the risk of error is excluded when copying the different keys and the testator only has to state in this paper the identity of the beneficiary of the assets.

Quebec Nutrients have adopted several numerical scales. Can it be changed in France?

Quebec notaries are very advanced in digital issues. They really offer their clients the opportunity to prepare what they call ” 360 degree asset review Which takes a complete inventory of your personal assets, digital assets, and important documents and their location.

They have too Create a form of digital will and be able to organize with their clients the management of social media accounts after death. In France, the issue of digital death and the fate of postmortem data has been addressed through a relatively recent law passed on October 7, 2016.

This Law of the Digital Republic, also called “Lumaire’s Law”, provides for Possibility to take directions related to storing, erasing and communicating his personal data after his death.

Predict the fate of his page (pages) on Facebook after his death

Predict the fate of his page (pages) on Facebook after his death

so you can Register instructions with a trusted third party to decide in particular on the fate of your open accounts on social networks. In fact, nearly 8000 people registered on Facebook die every day in the world, and soon there will be more dead than living on social networks!

However, the text resulting from the Le Maire Act could be improved, and the 117th Congress of Notaries has suggested that it be rewritten, particularly to clarify the rights of heirs in the absence of directives left by the deceased.

In a completely different area, smart contracts Can it be used for some notarial contracts such as the lease contract for example?

The A smart contract makes it possible to automate the terms of contract execution. They can ideally be included in a promise to sell or in a lease. However, spontaneity seems to me to be associated with smart contract It can be enormous without human appreciation. It must be handled with caution. In a notarized lease, a smart contract that would automatically close the property of the tenant and terminate the lease at the slightest delay in payment would be unacceptable and undesirable in my opinion. No one is safe from being forgotten or delayed by a day or two.

Blockchain was used in Ghana to create a land registry service. Could this technology be of use to France?

The France’s land registry service is very effective because it has been fed and updated since 1956. The introduction of a new blockchain-based system that would wipe the page of the past clean could take years to reach the level of efficiency that our land registry system is currently experiencing.

On the other hand, this technology actually seems to be very useful for countries that do not have a solid ownership base and whose powers lack stability because it makes it possible to reassure banks and investors.

Leave a Reply

Your email address will not be published.