Crypto inheritance

Crypto held in self-custody passes to heirs only if they can reach the keys. A workable plan combines two layers. The technical one covers where seed phrases or hardware wallets are, which wallets and networks hold funds, and how to use them. The legal one covers a will or other documents that name beneficiaries, mention the assets and give an executor authority, plus exchange accounts that follow their own death-claim procedures.

Without a plan, coins are often lost for good: blockchains have no next-of-kin process, and families may not even know a wallet exists. The collapse of the Canadian exchange QuadrigaCX in 2019, after its founder died and access to cold wallets was said to be lost, is a frequently cited warning. Tools include letters of instruction, multisig setups where a lawyer or service holds one key, Shamir shares and timelocked transactions that unlock after a long period of inactivity.

Every option trades secrecy against accessibility. Handing out the seed phrase early invites theft, while hiding it too well defeats the purpose. Inheritance tax and reporting rules vary by country, so heirs may owe tax on assets they cannot yet access.