How do tokenization platforms handle inheritance when a token holder passes away?

Inheritance for tokenized real estate generally follows the same legal principles as inheriting any other asset, but the digital nature of tokens introduces some unique practical steps platforms must accommodate.

How Inheritance Typically Works

• Standard estate processes apply, meaning tokens are usually transferred to heirs through a will, trust, or intestate succession process just like other investment assets.
• Platform-specific transfer procedures require the estate's executor to work directly with the tokenization platform to legally transfer ownership records to the designated beneficiary.

Practical Considerations

• Access to digital credentials, such as wallet keys or platform login information, must be planned for in advance, since lost access credentials can complicate the inheritance process significantly.
• Regulatory verification requirements for the receiving heir, such as accredited investor status where applicable, may need to be satisfied before the transfer can be completed.

Because tokenized property inheritance combines traditional estate law with newer digital asset logistics, estate planning for these holdings should specifically address how heirs will access and claim the tokens.