Estate Planning for Bitcoin Inheritances: What You Need to Know- What happens to cryptocurrency after you’ve passed? Digital assets, including crypto, become part of your estate. However, digital asset inheritances are a lot like inheriting a buried treasure with no map. A recent article from TradingView, “Bitcoin inheritances: A guide for heirs and the not-yet-dead,” offers useful pointers on digital estate planning.
Like traditional assets, crypto needs to be inventoried and valued like any other asset. This is usually done by the estate executor or administrator. However, if the executor is unfamiliar with digital assets, the cryptocurrency can be lost forever.
Digital asset owners, especially those with cryptocurrency, need to have a last will and testament naming someone to be the executor and designating another person as a digital executor. A complete inventory of all assets will be necessary to settle the estate, which should include cryptocurrency. Once a death certificate is obtained by the executor, with a few original copies for the executor and a few for the digital executor, the digital executor begins by determining where the crypto is located and how it is stored.
If the crypto is held in a financial institution specializing in crypto or Exchange Traded Funds (EFTs), there may be a “paper trail,” but exchanges don’t send paper statements, so the information may be on a customer portal or on the decedent’s cell phone or computer. If the asset is stored in Coinbase, Binance, or Crypto.com, accessing it will be like accessing a bank account, as these companies hold custody of the digital assets on behalf of the owner. The digital executor will need documents such as a death certificate, a valid ID and proof of their right to access the asset.
If log-in credentials were left to the executor, it may be technically possible to log in and transfer funds. However, this doesn’t automatically give the executor the legal right to do so. In many jurisdictions, accessing another person’s account after death, even with their password, can be considered unauthorized use. Some exchanges may consider doing this without informing the platform of a Terms of Service account violation.
Estate Planning for Bitcoin Inheritances: What You Need to Know
If the person stored the crypto themselves, it may be on their phone or a USB stick. If the crypto is in a wallet or cold storage device, there’s no company to contact. PINs, passwords, private keys, or seed phrases will be needed to access the assets.
There are many online companies that store digital assets, so finding them without the right information can be impossible. Unclaimed coins may be classified as abandoned property or simply stored indefinitely on an exchange.
An inventory, shared with the digital executor and the correct documents, will enable them to have legal access to accounts, preventing digital wealth from being lost. One digital investor advises people to find someone they trust implicitly who is familiar with this world and provide them with the necessary information. If you’re concerned about them having access to the information, consider providing them with half of the information, so at least half of the wealth can be accessed.
In some cases, trusts are used to own digital assets, allowing the person creating the trust to place assets under the care of the trustee. Consult with your estate planning attorney to determine if this approach might be a suitable way to protect digital assets and ensure that they are passed to the intended recipient.
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Estate Planning for Bitcoin Inheritances: What You Need to Know
Reference: TradingView (July 23, 2025) “Bitcoin inheritances: A guide for heirs and the not-yet-dead”
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