Crypto inheritance and exchange accounts
Crypto held at an authorised exchange is part of an account in your name.
Heirs usually need to contact the exchange with documents such as a death certificate and proof of their right to the estate, following the exchange's own procedure.
That is only possible if they know the account exists.
Crypto inheritance and self-custody wallets
Coins in a self-custody wallet can only be moved with the keys or the recovery phrase.
No company can reset the wallet, so without the phrase the coins are usually lost forever.
Planning crypto inheritance
- Make a list: exchanges, wallets and approximate amounts, without passwords or phrases.
- Decide where the recovery information is kept: a secure place your heirs can reach.
- Write simple instructions: how to contact each exchange and how to use a wallet phrase safely.
- Tell a trusted person that the instructions exist.
- Consider legal advice: a will or estate plan that mentions digital assets.
- Review yearly.
Balancing access and security
A phrase that is easy for heirs to find can also be easy for others to find.
Options include keeping the phrase in a sealed envelope with a lawyer or in a safe deposit box, or splitting where pieces of information are kept.
Whatever you choose, never put the phrase itself in a will, which can become a public document in some countries.
Crypto inheritance and tax
Inherited crypto may be subject to inheritance tax and later to tax on gains, depending on the country.
Records of purchase dates and prices help heirs, as the guide to selling crypto explains.
Crypto inheritance: what to write in your instructions
| Include | Leave out |
|---|---|
| Names of exchanges and the email used for each | Passwords and two-factor codes |
| Types of wallets and where the devices are | The recovery phrase itself |
| Where the recovery information is stored | Anything that alone gives access |
| Approximate amounts, updated yearly | |
| A trusted person who understands crypto | |
| Basic safety rules: test transfers, scam warnings |
Crypto inheritance: warning your heirs about scams
Grieving families are targeted by scammers who claim they can "recover" or "unlock" a deceased person's crypto for a fee.
Your instructions should say plainly that no genuine service needs the recovery phrase or an upfront fee, and that exchanges handle estates through their official procedures.
Crypto inheritance: practical options
- Sealed envelope: instructions and the phrase location kept with a lawyer or in a safe deposit box.
- Split information: instructions with one person, the phrase location with another.
- Exchange custody for part: heirs can claim through the exchange's estate procedure.
Each option trades some security for access; choose the balance that fits your family.
Crypto inheritance: for heirs
- Do not rush: crypto does not disappear because time passes, but mistakes are permanent.
- Contact exchanges through their official websites with the documents they request.
- Find someone knowledgeable you trust before touching self-custody wallets.
- Move funds with test transfers to an account or wallet you control.
- Get legal and tax advice on the estate.
Crypto inheritance: a template for your instructions
| Section | Example content (fictional) |
|---|---|
| Overview | "I hold crypto at one exchange and in one hardware wallet." |
| Exchange | "Account at an authorised exchange, registered with my main email address." |
| Hardware wallet | "Device in the home safe; recovery information in the bank safe deposit box." |
| Trusted helper | "Ask my friend, who understands crypto, before moving anything." |
| Warnings | "Never give the recovery phrase to anyone; ignore anyone offering to recover funds for a fee." |
| Last updated | The date of your latest review |
Fictional example; adapt it to your situation and seek legal advice for your will.
Crypto inheritance: claiming an exchange account
- Identify the exchange from the instructions, emails or bank statements.
- Find its estate or bereavement procedure on the official website.
- Gather documents the exchange asks for, such as a death certificate and proof of entitlement.
- Submit through official channels only.
- Ask how assets will be released, as crypto or as euros.
Expect the process to take time, because exchanges must verify the claim carefully.
Crypto inheritance: self-custody for heirs
With the recovery information, heirs can restore a self-custody wallet in a compatible app or device and move the funds.
They should do so calmly, with help from someone they trust, and with a small test transfer first.
The guide to withdrawing to a wallet describes the same careful steps.
Crypto inheritance and records
Heirs may need to know when and at what price the crypto was bought, for inheritance or later tax calculations.
Keeping a simple yearly record of holdings and downloading exchange histories makes this much easier.
Crypto inheritance: incapacity, not only death
Illness or accident can leave someone unable to manage their affairs for a while.
A power of attorney or similar arrangement, where available in your country, and the same clear instructions help the people who step in.
Crypto inheritance: an annual review
- Are all accounts and wallets listed?
- Is the recovery information where the instructions say?
- Is the trusted helper still willing and able?
- Do the instructions still match your holdings?
Crypto inheritance: talking to your family
Many people never tell their family they hold crypto, and some holdings are lost simply because nobody knew they existed.
You do not have to share amounts or access to start the conversation: it is enough to say that crypto exists, that instructions are in a certain place and who can help.
The conversation is easier when it is part of a wider talk about savings, insurance and wills.
Crypto inheritance: common mistakes
- Keeping everything secret, so nobody knows the crypto exists.
- Writing the recovery phrase in the will itself.
- Storing the only copy of the phrase in a place heirs cannot access.
- Instructions so technical that heirs cannot follow them.
- Forgetting to update the instructions after moving funds.
Crypto inheritance: choosing a trusted helper
A trusted helper is someone your heirs can ask for practical guidance, not someone who should hold your keys.
- Someone you trust personally and who understands wallets and exchanges.
- Someone your heirs know and can reach.
- Someone who agrees to the role in advance.
The helper does not need access to your funds; the instructions and the recovery information stay with your heirs or in a secure place.
Crypto inheritance: when the amount is small
Even small holdings deserve a short note, because recovering them can be impossible without one.
For small amounts, keeping the crypto at an authorised exchange may make inheritance simpler, since heirs can claim through the exchange's procedure.
Crypto inheritance: professional help
Lawyers and estate planners increasingly deal with digital assets.
When choosing one, ask about experience with crypto, and never hand over recovery phrases as part of the planning; instructions on where they are kept are enough.
Crypto inheritance: exchange accounts versus self-custody
| Exchange account | Self-custody wallet | |
|---|---|---|
| What heirs need | Knowledge of the account and estate documents | The recovery information and careful handling |
| Who helps | The exchange's estate procedure | A trusted, knowledgeable person |
| Main risk | Delays and paperwork | Permanent loss if the phrase is missing |
| Scam exposure | Fake "support" claiming to speed things up | Fake "recovery services" |
Many people combine both: part at an authorised exchange for simplicity, part in self-custody with clear instructions.
Whichever you choose, the most important step is the same: make sure someone knows the crypto exists and where the instructions are.
Crypto inheritance: frequently asked questions from heirs
We found a hardware wallet but no instructions. What now? Search papers, safes and digital notes for a list of words or a reference to where they are kept, and do not type anything into websites while searching.
Someone online says they can open the wallet for a fee. Is that possible? Treat it as a scam; without the recovery information, nobody can open a properly secured wallet, and paying will only add to the loss.
The exchange asks for many documents. Is that normal? Yes; exchanges must verify that the person claiming the account is entitled to it, which protects the estate.
Should we sell everything at once? There is no need to rush; take advice on the estate and taxes first, and move assets carefully with test transfers.
Do we pay tax on inherited crypto? That depends on the country's inheritance and capital gains rules, so ask a tax adviser or the national tax authority.
Crypto inheritance: start today
Writing a short note today is better than a perfect plan that never gets written.
Start with three lines: where your crypto is, where the instructions are kept, and who can help, then refine it at your next yearly review.
Frequently asked questions
What happens to crypto when the owner dies?
Exchange accounts can usually be claimed by heirs through the exchange's procedure. Self-custody coins can only be accessed with the keys or recovery phrase.
Should I put my seed phrase in my will?
No. A will can become a public document in some countries. Keep the phrase elsewhere and refer to where instructions are kept.
How do heirs claim an exchange account?
By contacting the exchange through its official channels and providing the documents it asks for.
Is inherited crypto taxed?
It may be, depending on the country's inheritance and capital gains rules.
How often should I update my crypto inheritance plan?
At least once a year and whenever you open or close accounts or wallets.
Every figure on this page is checked against the ESMA register, the exchange's own terms and fee pages or another primary source, and the sources are listed above. Editorial policy · How we rate