Life insurance is often presented as a preferred tool for the transmission of assets in France. Although its effectiveness and tax advantages are undeniable, it nevertheless has limits. Limitations that cryptocurrencies could resolve. Shouldn’t the French instead bequeath crypto-assets instead?
The negative points of life insurance for inheritance
According to a survey, only 14% of French people have already prepared a will and only 23% plan to do so. Statistics also show that life insurance remains an effective and most used tool for inheritance. However, it has limitations and disadvantages.
Lack of transparency and control is at the top of the list. The internal workings of life insurance companies can indeed be unclear. Result: heirs cannot control investments and management of funds.
Add to this the high fees and commissions. Life insurance contracts are often accompanied by significant fees and commissions which can reduce the value of the assets transferred. The life insurance capital is generally tax-exempt for beneficiaries up to €152,500.
Last but not least, life insurance beneficiary clauses are sometimes rigid. They do not always make it possible to meet the specific needs of heirs.
Cryptocurrencies as a potential alternative?
Faced with these limits, cryptocurrencies could present themselves as an interesting alternative for inheritance. They offer several advantages such as transparency and traceability. Crypto transactions are recorded on the blockchain. The latter guarantees complete traceability of funds.
With crypto assets, heirs also have a total control over their assetswithout intermediaries or high management fees.
Added to this are the flexibility and programmable clauses of cryptocurrencies. They can be scheduled to be released under specific conditions that meet the individual needs of heirs.
Of course, cryptocurrencies are not without risk. Their value can still fluctuate significantly, and their adoption by the general public is not yet widespread. But bequeathing cryptocurrencies turns out to be more advantageous compared to life insurance.
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