How to plan inheritance for cryptocurrency holdings
Plan inheritance for cryptocurrency holdings by naming beneficiaries and documenting access. Heirs may need a court order for exchange accounts.
Vahe HakobyanEditor-in-chief
Updated Oct 5, 20262 min readFact-checked
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Your documents must connect to the keys that hold the assets.
What should you gather first?
Name beneficiaries and leave secure access instructions. Beneficiary designations or a trust can move crypto outside probate, but clear instructions still matter.
How do you put crypto in your estate plan?
Your plan usually includes a will or trust plus access instructions; some accounts pass by beneficiary designation. Exchanges do not always honor a will automatically, and a will alone does not give heirs keys.
- 1Name beneficiaries and leave access instructionsList who should receive each asset and write secure instructions.
- 2Write a will or trustState that digital assets are included. A trust can hold crypto outside probate.
- 3Check exchange designationsReview each exchange's beneficiary rules and forms.
- 4Document seed phrases and passwordsRecord where they are stored, not the phrase itself. Keep the phrase out of the will.
- 5Name a crypto-aware executorChoose an executor or trustee who understands crypto and probate rules.
What should heirs do after death?
The IRS treats crypto as property, so inherited crypto usually gets a step-up in basis at death. Estate tax may apply, and later sales must be reported.
Frequently asked questions
State intestacy laws decide who gets probate property. Beneficiary designations or a trust pass outside intestacy.
On an exchange, heirs may use the death claim process. Self-custody wallets usually need the seed phrase.
No. A will can become public during probate. Store the phrase separately and tell your executor where it is.
It can. Exchange accounts are usually part of your estate, but the platform's beneficiary rules also apply.
