Complex issues with inheritance law and cryptocurrency

So, what’s the deal if you inherit a Binance account from someone who just passed away? Imagine they had around 200k in tokens right when they died. Binance claims you can get those crypto assets back if you can show you’re the rightful heir and have the right documents. But what documents are we talking about? Gotta make sure nothing’s missing or else the funds could be lost forever, right? I have no idea if that’s a real risk. Do they just transfer the actual tokens to the heir’s crypto account? Or do they cash out the tokens and give the heirs the money instead? I bet most heirs don’t even have crypto accounts set up. And what if the deceased still had to deal with their tax returns for any trades they made right before they died? Are the heirs now responsible for that tax mess?

Actually, depending on what country is involved, the laws should be no different than dealing with inherited stocks, bonds, real estate, bank accounts, etc. Documents typically include a copy of the will, family birth/death records and such.

Same for taxes, depending on the country involved the value of the tokens at the point of inheritance usually becomes the new cost basis, though some countries charge an inheritance tax.

I am not familiar with the laws of your country, but according to general rules, the death of a person nullifies all contracts and obligations. If the deceased person has debts, they will be collected from the heirs who receive the inheritance. You need to visit a notary or a lawyer specializing in inheritance matters, and they will explain the entire procedure to you.

There are some instructions on Binance regarding the required documents via the following link: https://support.binance.us/en/articles/10395308-collecting-funds-from-a-deceased-user-s-account But the most important question is who is entitled to inherit from the deceased's Binance account? I mean, if the deceased had a wife and children, they all have a share in the inheritance. But who is entitled to inherit the Binance account?

But checking what the Binance website says, or consulting Binance support, isn't very smart, you know. The smartest thing to do is ask in this forum (note the sarcasm). As you have already been told, OP, with regard to inheritance and taxation, you will be governed by the laws of your country. But normally, once you have proven that you are the heir to Binance, you can do whatever you want with the funds. Regarding point 1 mentioned by yhiaali3, I don't think it's mandatory for you to transfer the assets. Normally, you can leave them there if you want, make exchanges, or whatever you want, because from that moment on, you are the owner.

Unless the deceased indicated otherwise in his will, all of his property should go to his wife, who is the first legal heir, especially if the children are still minors. Of course, if the deceased explicitly wrote that he was leaving his CEX account to someone personally, then the matter is completely clear. However, sometimes, even in the case of a clearly written will, some people file objections because they do not agree with it, which in some cases can even result in the will being declared invalid (forged). There is nothing people aren't willing to do for money, even within the family.

I believe that is where the persons will comes into play, which would contain in it how the assets should be distributed and who should get what. To lay claim, you also need to submit documents that show you have legal rights to claim the asset. So i believe with all the documents that is required, only the legally recognized heir can present them to Binance, and lay claim to a deceased account holder's assets.

How different are the laws in countries on inheritance In my country, inheritance is divided equally between the spouse, parents and children. If there is no marriage contract, then the wife will immediately own 50% of the common property after the death of the spouse, and the remaining 50% will be divided between the people from the second sentence.

Oh, this is completely different in my country and in Islamic countries, where the wife receives only 1/8 of the inheritance, and the rest is divided among the children. Obviously, there are significant differences in inheritance laws depending on the country. Therefore, to avoid problems, it is best (as @Lucius mentioned) for the account owner to appoint a legal heir on Binance, to avoid disputes among the heirs over the deceased's account.

In my country the legally married wife gets everything especially if the children are minors. If the married is not recognised by law, she gets nothing. Extended families might benefit if they are included in the will. Including a next of kin in Binance documentation is important to avoid disagreements. A legal practitioner will give better advice regarding documents that should be presented by the claimant and the tax-related issues.

I studied Sharia law. Surah An-Nisa (4:11) It is written here that each parent is entitled to 1/6 of the inheritance, and 1 wife is entitled to 1/8 of the inheritance. So each parent gets more than the wife. In Summary In Russia, the same first-order heirs are as in Sharia law. But there is one serious disagreement. In Sharia law, the debts of the deceased are paid first, and then the inheritance. In my country, the heirs will first receive the inheritance after 6 months, and then the creditors will receive their share from the heirs through the court. Is the law equivalent? If the wife dies, does the husband get all the property if there is no will? In your country, is risky to be married

Amazing, I'm honestly surprised that you studied Islamic law. Indeed, Surah An-Nisa (4:11) is the primary source of inheritance laws according to Islamic law, but it's not the only source. There are other cases that are derived from the Prophet's hadiths or through ijtihad. It's great to learn about other cultures and religions, as you can see, since inheritance laws vary greatly from one country to another.

What's surprising about that? I've traveled to different countries and studied local laws. As far as I know, if the Koran says that parents have a share of the inheritance that they are entitled to after the death of their children, then no one can deprive them of this right?

No, No one has the right to prevent parents from their share of the inheritance they are entitled to after the death of their children. If a man dies leaving behind two parents, a wife, and children, the father and mother each receive 1/6 of the inheritance, the wife receives 1/8, and the remainder is distributed among the children.

All things being equal with the correct document and heir information, I think binance would convert the coins to cash and pay out. It has to go through process of appeal and backed up with some documents from the deceased like if he died testate. It is easier if he had made it clear in his will that the heir can receive his hodling in the exchange whether through crypto or fiat currency but if not explicitly stated thus, the heir can get a court affidavit deposing to being the heir and choosing to receive the deceased coins through fiat. It is simple I believe. Since there is transfer of ownership, so liabilities and profit will be transferred. Therefore, the tax payment will be traceable to the heir, the new owner. Or removed from source since binance is CEX and answerable to the country of domicile or operation.