Crypto and Digital Assets in Your Will

Crypto holdings are uniquely vulnerable in estate planning. Unlike a bank account, there is no institution that can be compelled to release funds to your heirs. Without access to seed phrases, hardware wallets or exchange credentials, even the rightful beneficiaries may never recover them.

The two access problems

There are two separate problems to solve: knowing what you hold, and being able to access it. Many heirs discover the existence of a wallet but cannot move the funds because the seed phrase is missing or the exchange account has two-factor authentication tied to a phone they cannot unlock. Both problems need to be addressed before they become urgent.

How a will fits in

Your will should reference your digital assets without putting secrets in the public record. A common pattern is to name the categories of assets (hardware wallets, exchange accounts, NFT holdings) and to refer to a separate, secure memorandum that tells executors how to find and access them. The memorandum is stored privately - for example with a trusted custodian, in a bank safe deposit box, or in a password manager with emergency access.

Practical access steps

Keep a current inventory: which wallets exist, where they are held, which exchanges hold accounts in your name, and what authentication is in place. For self-custody, ensure seed phrases are recoverable by your executor or a trusted third party - ideally split using a documented scheme so no single person holds the full key. For exchange accounts, check whether the platform has a documented inheritance process and follow it.

Tax and reporting

Crypto is increasingly subject to reporting rules across jurisdictions. Your executor will need to identify holdings, value them at the date of death, and report appropriately in any country where you or your heirs are tax-resident. Keeping records of cost basis and transactions makes this dramatically easier - and protects your family from disputes with tax authorities.