The short answer
Crypto estate planning means making sure three things are true when you die or can no longer act:
- Someone has legal authority over your digital assets: an executor under your will, a trustee, or an agent under a power of attorney.
- That person can actually reach the assets. For an exchange account this is a claim process; for a self-custody wallet it means getting to the right backups, and nothing else can replace that.
- The records exist to sort out taxes and prove what was owned.
Most estate plans already cover the first point. The gap is usually the second. A lawyer can write a perfect will, and the coins can still be lost because nobody knows where the seed phrase is, or because it was never written down with the passphrase it needs.
Step 1: Write an inventory, without the secrets
Start with a list of what exists. For each item, note the kind of asset, where it is held, how it is recovered and who should be contacted. Leave out seed phrases, private keys and passwords; the list will be read by more people than the secrets should be.
A useful inventory covers:
- Exchange and brokerage accounts, with the email address each one uses
- Self-custody wallets: the wallet software or hardware model, and whether a passphrase or multisig setup is involved
- Where devices and backups are kept, described clearly enough to find them
- Anything unusual: staking, DeFi positions, NFTs, or coins on a second network
Our digital asset inventory template gives a ready-made structure.
Step 2: Cover digital assets in your legal documents
Will. Name an executor and make sure the will covers digital assets broadly, so crypto and the accounts that hold it are clearly included. Shares usually age better than fixed coin amounts. Never put a seed phrase in a will: wills are copied to advisers and can become public court records. Our guide to crypto in a will goes through the wording points to raise with a lawyer.
Trust. In the US, a revocable living trust can hold assets outside probate, which keeps them out of the public court file and can make transfers faster. It does not solve access: the trustee still needs the same recovery route an executor would.
Durable power of attorney. Estate plans often stop at death, but incapacity is just as likely to be the problem. A durable power of attorney lets a trusted agent manage your affairs while you are alive but unable to act. Ask your lawyer to make sure it covers digital assets.
Consent to disclosure (United States). Most states have adopted a version of the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). Under the model act, you can allow or prohibit disclosure of your digital assets to a fiduciary in a will, trust, power of attorney or other record. Giving that consent helps your executor see email and account records that show which exchanges you used.
Outside the US. Rules differ by country. England and Wales confirmed in the Property (Digital Assets etc) Act 2025 that digital assets can be property. Ask a local lawyer how your jurisdiction treats them.
Step 3: Choose an access route for each asset
Legal authority does not move coins. Decide, for each item on your inventory, how the right person will get to it.
| Where the asset is | How it passes | What to prepare |
|---|---|---|
| Exchange account | Executor claims it with a death certificate and proof of authority | List the exchange and email; keep your verified name matching your legal documents |
| Payment or brokerage app (Robinhood, Cash App) | Transfer-on-death or investing beneficiaries may not cover crypto, which then goes through the estate | Name beneficiaries where offered; tell the executor the account exists |
| Single-signature wallet | Whoever has the seed phrase and any passphrase controls the coins | A protected backup, a plan for when and how it is reached, and written steps |
| Multisig or collaborative custody | A quorum of keys is needed; an heir can hold one | Descriptors and device details recorded; instructions for the other keyholders |
Coinbase, Kraken and Gemini do not let you name a beneficiary on an individual account, so exchange-held crypto passes through the estate. Our guide to claiming a deceased person's exchange account lists what each exchange asks for.
For self-custody, the question is timing: how does the right person get the backups when they are needed, without anyone being able to use them today? Common answers are a sealed letter with your lawyer, a safe-deposit box named in your will, a multisig key held by an heir, or a dead man's switch that delivers instructions after you stop checking in. The bitcoin inheritance guide compares these setups in more detail.
Step 4: Know the 2026 tax numbers
These are US federal figures. State rules and other countries differ, so confirm with a tax adviser.
- Digital assets are property. The IRS says that for US tax purposes digital assets are property, not currency.
- Stepped-up basis. Under 26 U.S.C. § 1014, the basis of property acquired from a decedent is generally its fair market value at the date of death. Heirs who sell soon after usually owe little or no capital gains tax on the growth during the owner's lifetime. See how inherited crypto is taxed.
- Estate tax. The federal basic exclusion amount is $15,000,000 for people who die in 2026. Most estates owe no federal estate tax, though some states have lower thresholds.
- Gifts during life. The annual gift tax exclusion is $19,000 per recipient for 2026. Gifts don't receive a stepped-up basis; the recipient generally keeps your original cost basis.
Keep purchase records and wallet addresses with your inventory. An executor who can't show cost basis or ownership has a much harder job.
Step 5: Write the letter of instruction
The will says who inherits. A letter of instruction tells the executor how to do the work: which accounts to contact first, where the backups are, which steps to follow, which technical helper to call, and what to ignore (for example, anyone offering to "recover" coins for a fee). It isn't legally binding, which is exactly why it can be updated freely as your holdings change.
Step 6: Test it and keep it current
Run a recovery drill with a test wallet holding a trivial amount: hand the instructions to the person who would use them and watch where they get stuck. Then review the plan whenever you open or close an account, move coins to a new wallet, change your phone number, or when a named person's circumstances change. Once a year is a sensible minimum.
Questions to ask your estate lawyer
- How should my will define digital assets so crypto and exchange accounts are clearly covered?
- Is a revocable trust worth it for my holdings and my state?
- Does my power of attorney cover digital assets, and does it include consent to disclosure?
- Where should my executor find the letter of instruction, and how should the will refer to it without repeating secrets?
- Who should act as a technical helper, and what authority should they have?
Where PingVaults fits
PingVaults stores an encrypted note, such as your letter of instruction or recovery pointers, and delivers it to a trusted contact if you stop checking in. Decrypting it needs answers you shared with that person separately, so the service itself can't read it. It doesn't decide who inherits, it doesn't prove anyone's authority, and it doesn't replace a will, a trust or a lawyer. Use it alongside them, and keep an offline copy.
This article is general information, not legal or tax advice.
Common questions
What is crypto estate planning?
It is the part of an estate plan that makes sure your crypto can be found, reached and legally transferred after you die or become unable to act. It combines legal documents, an inventory, an access route for each wallet or account, and tax records.
Do I need a trust for crypto?
Not necessarily. A will plus good instructions works for many people. A revocable trust can avoid probate and keep the details private, but the trustee still needs the same recovery route. A lawyer can tell you whether it is worth it in your situation.
Can I name a beneficiary on my crypto exchange account?
Usually not. Coinbase, Kraken and Gemini don't offer beneficiary designations on individual accounts, so the account passes through your estate and your executor claims it.
What happens to crypto if there is no estate plan?
It passes under the default inheritance rules where you live, like other property. Exchange accounts can still be claimed by whoever is appointed to handle the estate. Self-custodied coins may be lost permanently if nobody can find or use the keys.
How often should I update my crypto estate plan?
Whenever you open or close an account, move coins to a different wallet or change your recovery setup, and at least once a year.