Crypto Caution
Cryptocurrency is revolutionizing the personal finance space, offering decentralization, privacy, and financial independence. But these offerings come with unique challenges—especially in relation to estate planning. Unlike traditional assets held in bank accounts or investment portfolios, crypto is only accessible with private keys, seed phrases, and passwords. If these credentials are lost, so is the wealth they protect.
Without proper planning, your crypto assets could become inaccessible, lost, or even unclaimed after you pass away. Here’s how to secure your digital wealth and ensure it’s passed down according to your wishes.
Understand the Unique Challenges of Crypto in Estate Planning
Traditional financial assets—like bank accounts, stocks, and real estate—are easy to transfer after death because they’re registered with institutions that have processes for handling estates. However, crypto exists in decentralized networks, meaning:
🔹 No financial institution controls it – There’s no bank to retrieve lost credentials.
🔹 Private keys and seed phrases are required for access – Without these, your assets are unrecoverable.
🔹 Legal recognition of crypto varies – Some jurisdictions don’t fully recognize digital assets in estate law.
Without a proper plan, your crypto could end up in legal limbo or lost forever.
Take Steps to Secure Your Crypto for Future Generations
To ensure your loved ones can access your crypto safely and legally, follow these key steps:
Step 1: Keep an Inventory of Your Crypto Holdings
Make a list of all your cryptocurrency assets, including:
✔ Types of cryptocurrency (Bitcoin, Ethereum, etc.)
✔ Wallets and exchanges where they are stored
✔ Account details and any associated login credentials
💡 Tip: Keep this list updated as you buy, sell, or move assets across different wallets.
Step 2: Securely Store Access Information
Because crypto is only accessible via private keys and seed phrases, it’s critical to store this information in a secure, but retrievable way:
✔ Use a hardware wallet (Ledger, Trezor) for added security.
✔ Write down seed phrases and private keys—do not store them digitally where they can be hacked.
✔ Use a password manager to safeguard exchange logins.
✔ Consider a safety deposit box or fireproof safe for physical records.
⚠ Never include private keys in your will—wills become public records during probate!
Step 3: Designate a Digital Executor
A digital executor is someone who understands cryptocurrency and can manage your digital assets. This person should:
✔ Know where to find your access information
✔ Understand how to transfer and secure crypto
✔ Follow the instructions in your estate plan
This role should be legally documented in your will or trust to ensure they have authority to act.
Step 4: Include Cryptocurrency in Your Estate Plan
To legally pass down your crypto, integrate it into a will or trust:
🔹 Will-Based Plan – Lists who inherits your crypto but requires probate, which may delay access.
🔹 Trust-Based Plan – Allows direct transfer of assets without probate, offering more security and privacy.
A trust is often the best option for crypto holders because it avoids legal delays and ensures immediate access to your assets.
Keep Your Plan Updated
The world of cryptocurrency is constantly evolving. Make sure to regularly update key records, including:
✔ Inventory of crypto assets
✔ Access instructions and security measures
✔ Legal documents (will/trust, power of attorney, etc.)
By staying proactive, you ensure your digital legacy remains protected and accessible.
Don’t Let Your Crypto Get Lost
Cryptocurrency offers unparalleled financial freedom, but that freedom comes with the responsibility of safeguarding your assets. Without proper estate planning, even large crypto holdings could become inaccessible forever. By taking the right steps—documenting your assets, securing private keys, naming a digital executor, and incorporating crypto into your estate plan—you can ensure your wealth is protected and passed down seamlessly.
At Laurel, we specialize in estate planning for modern assets, including cryptocurrency. Let’s start the conversation and create a plan that secures your digital wealth for generations to come.
