Crypto Estate Planning

Unlike traditional financial assets held by banks or brokerages, cryptocurrency exists only on decentralized blockchains. If your private keys, seed phrases, or wallet access credentials are lost when you pass away, your digital assets could become permanently irrecoverable — regardless of their value. A comprehensive crypto estate plan ensures your beneficiaries can locate, access, and manage your digital holdings.

Best practices

• Never store seed phrases or private keys in a standard will — wills become public record during probate
• Use a layered approach: the will references a separate, secure document with technical access details
• Update your crypto estate plan at least annually or whenever you acquire new wallets or assets
• Consider appointing a technically competent digital executor separate from your general executor
• Consult both a crypto-savvy attorney and a tax professional — crypto inheritance has unique tax implications

The foundation of your plan is a complete inventory of every crypto asset you hold. This should include exchange accounts, self-custody wallets (hardware and software), DeFi positions, staked assets, NFTs, and any tokens across all blockchains.

Best practices

• Include ALL chains — Bitcoin, Ethereum, Solana, and any L2s or alt-chains you use
• Document approximate values but focus on access methods — values change, access doesn't
• Don't forget staked assets, LP positions, locked tokens, or vesting schedules
• Include airdrop eligibility or unclaimed rewards if significant
• Note any assets held in multi-sig wallets and who the other signers are

Your information

Completion checklist

This is the most critical section. For each wallet or account, document exactly how your beneficiary would gain access. NEVER put this information in the worksheet itself if it will be stored digitally — instead, reference where the information is physically stored.

Best practices

• Store seed phrases on metal backup plates (Cryptosteel, Billfodl) — paper degrades and burns
• Use a fireproof, waterproof safe for physical seed phrase storage
• Consider Shamir's Secret Sharing to split seed phrases across multiple locations
• For exchange accounts: document email, 2FA method, and recovery procedures
• If using a password manager, ensure your executor knows the master password recovery method
• Hardware wallet PINs should be stored separately from the device itself

Your information

Completion checklist

Specify who should receive your digital assets and in what proportions. Consider each beneficiary's technical capability — someone unfamiliar with crypto may need additional instructions or a designated technical helper.

Best practices

• Name primary and contingent (backup) beneficiaries for each major holding
• Consider creating a simple instruction guide for non-technical beneficiaries
• Specify whether beneficiaries should hold, liquidate, or transfer to cold storage
• For minor beneficiaries, designate a custodian to manage assets until they reach legal age
• Consider a trust structure for large holdings — it provides more control and may reduce tax burden

Your information

Completion checklist

Your digital executor is the person responsible for carrying out your crypto estate plan. This may or may not be the same person as your general estate executor. The digital executor needs to be technically competent enough to handle wallet transfers, exchange withdrawals, and potentially DeFi interactions.

Best practices

• Choose someone who understands crypto transactions or is willing to learn
• Consider naming a professional crypto estate service as backup executor
• Provide step-by-step written instructions for each type of transfer they'll need to perform
• Include instructions for what to do if an exchange requires KYC/identity verification for the deceased
• Grant your executor legal authority in your will specifically for digital assets
• Consider a dead man's switch service that alerts your executor if you become unresponsive

Your information

Completion checklist

Crypto estate planning intersects with rapidly evolving legal and tax frameworks. The IRS treats cryptocurrency as property, meaning inherited crypto receives a stepped-up cost basis (the fair market value at the date of death). Proper planning can significantly reduce your beneficiaries' tax burden.

Best practices

• Work with an attorney familiar with your state's digital asset laws (the Revised Uniform Fiduciary Access to Digital Assets Act varies by state)
• Document the original cost basis of each asset — your beneficiaries may need this if stepped-up basis is challenged or changes
• Consider whether a crypto trust (revocable or irrevocable) makes sense for your holdings
• Be aware that some jurisdictions treat crypto differently — if you hold assets on non-US exchanges, additional reporting may apply
• Keep records of all taxable events (trades, staking rewards, airdrops) to avoid complications during estate settlement
• Review your plan whenever major tax legislation changes

Your information

Completion checklist

Your estate plan must balance accessibility (so your executor can act) with security (so no one accesses your assets prematurely). This section covers the operational security measures that protect your plan.

Best practices

• Use geographic distribution — don't store all access credentials in one location
• Consider a time-locked dead man's switch (e.g., Google Inactive Account Manager, or a crypto-specific service like Safe Haven)
• Review and rotate any passwords or PINs referenced in your plan annually
• If using multi-sig, ensure your estate plan accounts for the minimum signature threshold
• Keep an encrypted digital backup in addition to physical copies — but document the decryption method
• Never email, text, or digitally transmit seed phrases or private keys, even to your executor

Your information

Completion checklist

A crypto estate plan is a living document. The crypto landscape changes rapidly — new chains, new wallets, new regulations, new holdings. Schedule regular reviews to keep your plan current.

Best practices

• Set calendar reminders for quarterly reviews (at minimum, annual)
• Review immediately after any major life event (marriage, divorce, birth, death in family)
• Review after acquiring any new type of crypto asset or opening a new exchange account
• Review after any significant change in portfolio value (up or down)
• Keep a changelog of updates so your executor sees the most recent version

Your information

Completion checklist