Why crypto is different from a bank account
A bank can verify an executor and release money. A blockchain cannot. Whoever holds the private key controls the coins, and there is no help desk to call. That makes access, not ownership, the real problem.
Exchange or self-custody?
- On an exchange, executors usually go through the exchange’s process for a deceased customer, with documents such as a death certificate and proof of authority.
- In self-custody — a hardware or software wallet — the keys are the only way in. If they are lost, so are the coins.
What never to do
- Write a seed phrase in a will: wills often become public
- Keep the only copy in one person’s head or one drawer
- Store an unencrypted photo of it in a cloud account
- Rely on a single trusted person holding everything
Better approaches
- Keep an up-to-date inventory: what you hold, where, and on which wallet
- Leave instructions, not just keys: what to do, whom to trust, what to avoid
- Split access: for example, a key split so that two of three people must cooperate
- Use a careful, staged switch so access opens only when it is really needed
- Tell your executor that the plan exists and where to start
Taxes and law
Valuation, tax and the legal treatment of digital assets vary by country and change quickly. Speak to a qualified adviser about the estate side, and use a plan like Wirātha’s to solve the access side.
Frequently asked questions
Are my coins lost if I forget to tell anyone?
If no one else has the keys or seed phrase, usually yes — permanently. That is why a plan matters more for crypto than for almost anything else.
Is it safe to give someone my seed phrase now?
It gives them full control immediately. Splitting access between several people, so no one can act alone, is safer.
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