Crypto Inheritance: How to Pass Down Your Bitcoin

Don't Let Your Crypto Die With You

An estimated $140 billion in Bitcoin is permanently lost because holders died without passing down access. Don't let this happen to your family.

The Problem

If you die without sharing wallet access, your crypto is gone forever. There's no bank to call, no reset password. This makes inheritance planning critical for anyone holding significant crypto.

Step 1: Inventory Your Assets

Document all your:

• Exchange accounts (Coinbase, Kraken, etc.)
• Wallet addresses and which chains
• Hardware wallet locations
• Staking positions

Use the Portfolio Allocation tool to visualize your holdings.

Step 2: Secure Your Seed Phrases

Options for safe inheritance:

• Sealed letter with attorney — include seed phrases and instructions
• Safety deposit box — accessible by named beneficiary
• Split seed phrase — give different portions to multiple trusted people
• Multisig wallet — require 2-of-3 signatures (e.g., spouse + attorney + you)

Review the Security Checklist for best practices.

Step 3: Write Clear Instructions

Your heirs may not be crypto-savvy. Include:

• What cryptocurrency is and what you own
• How to access each exchange (email + 2FA backup codes)
• How to use a hardware wallet (Hardware Wallet Quiz)
• When and how to sell (recommend they use the Exchange Fee Calculator)
• Tax implications of inheriting crypto

Step 4: Legal Documentation

• Update your will to include digital assets
• Consider a crypto-specific trust
• Name a digital executor who understands crypto
• Check if your state has adopted the Revised Uniform Fiduciary Access to Digital Assets Act

Step 5: Review Regularly

Review your plan annually. Update when you:

• Create new wallets
• Move to new exchanges
• Change beneficiaries

Use the Tax Impact Preview to understand inheritance tax implications.

*This is educational information, not legal advice.*