What Happens to Crypto When You Die?

You’ve invested in digital currency. You’ve seen the charts, watched your wallet grow, maybe even dabbled in NFTs. But there’s one question that many crypto investors don’t think about until it’s too late: what happens to crypto when you die?

If your estate plan doesn’t address your cryptocurrency, your heirs could be locked out of those assets forever. At Cary Estate Planning, we help clients in North Carolina secure their digital legacy—because your Bitcoin deserves the same planning as your bank account.

Let’s break down how crypto fits into your estate plan, and what you need to do now to protect it.

Why Estate Planning for Crypto Is Different

Digital currency isn’t like traditional money. There are no paper statements. No banks you can call. And no automatic way for your family to claim your crypto if you pass away without a plan.

Crypto is decentralized, anonymous, and password-protected. If no one knows how to access your wallet or exchange account, your digital assets could be lost permanently—even if they’re worth thousands or millions of dollars.

That’s why estate planning for cryptocurrency takes more than just a will. It takes clarity, communication, and security.

Start with How You Hold It

The first step is understanding how you hold your crypto. That determines how we plan for it.

1. Crypto Held in Custodial Accounts

If you use a crypto exchange like Coinbase or hold crypto through a platform like a spot ETF (exchange-traded fund) inside your retirement or brokerage account, it functions more like traditional investments.

In these cases:

• You can title the account in the name of your revocable living trust
• Or you can name beneficiaries directly (just like with IRAs and 401(k)s)

This allows your crypto to bypass probate and go directly to your heirs.

2. Crypto Held in Wallets (Online or Cold Storage)

If your digital assets are stored in:

• A software wallet
• A cold wallet (like a USB drive or external hard drive)
• Or a hardware wallet (like a Ledger or Trezor)

…you have to take an extra step.

Your executor or trustee needs to know:

• Where your wallet is stored
• What assets it contains
• How to access it (PINs, passwords, private keys, seed phrases)

If you don’t document that information securely and clearly, even the best estate plan can’t unlock your crypto.

Don’t Just List Your Crypto. Make It Accessible.

Too many people mention “Bitcoin” in their will and think that’s enough. It’s not.

You need to:

• List the type and amount of crypto you own
• Name where it’s stored (which exchange or wallet)
• Provide access credentials (ideally through secure, separate instructions)
• Make sure your executor or trustee understands crypto, or name someone who does

If your plan doesn’t include this info, your heirs might never find your wallet—or worse, they might find it and be locked out.

Should I Use a Trust for My Crypto?

In many cases, yes. A revocable living trust can:

• Avoid probate
• Allow for quicker access to digital assets
• Give your trustee authority to manage or distribute your crypto
• Protect your privacy (since wills are public)

You can also include instructions about when, how, and to whom your crypto should be distributed—just like you would for other property.

For high-value crypto, trusts provide flexibility and protection that a simple will can’t match.

Protect Your Keys—But Make Them Findable

Let’s talk about the elephant in the room: private keys.

Without them, no one can access your wallet.

But if you write them down and leave them lying around, anyone can steal your assets.

The solution? Store your keys in a secure way that’s discoverable after your death. Options include:

• A safe deposit box (list the location in your estate plan)
• A password manager (share master credentials with your executor)
• An encrypted digital file (with written instructions on how to decrypt it)
• Online digital storage (such as our CEP Secure Client Vault, which allows you to securely store and share essential estate planning documents with your loved ones and fiduciaries)

Just remember: security and access must be in balance. Too much of one and you risk the other.

Don’t Rely on the Platform to “Figure It Out”

Crypto exchanges don’t work like traditional banks. Some may have policies for transferring assets after death—but most don’t have clear procedures.

Even platforms like Coinbase may require:

• A court order
• Proof of death
• Letters testamentary or a trust certificate

Without a legal plan in place, your loved ones may face massive delays—or worse, lose access altogether.

Can I Use My Will to Transfer Crypto?

Technically, yes. But there are risks:

• Delays in probate could result in missed market opportunities
• Public record could expose asset details
• Lack of access info could make the will useless

That’s why we recommend including crypto in your overall estate plan—not relying solely on a will.

What Happens If I Do Nothing?

If you pass away without a plan for your digital currency:

• Your executor may never even know it exists
• Your crypto may be lost forever (especially in cold wallets)
• Your family may spend months in probate trying to access accounts

Bottom line: crypto dies with you if no one knows where it is or how to access it.

Cary Estate Planning Helps You Protect Your Digital Wealth

Crypto isn’t the future—it’s already here. And at Cary Estate Planning, we help make sure your digital assets are treated just as carefully as your home, your business, or your bank account.

Whether you hold crypto on an exchange or in a cold wallet, we:

• Integrate your digital currency into your trust or will
• Help you document access instructions safely
• Work with your chosen fiduciaries so they understand what’s involved

Because if you’ve worked this hard to build wealth, you should make sure it lives on.

Let’s Secure Your Legacy—Including Your Crypto

You don’t have to be a Bitcoin billionaire to need a plan.

If you’re holding digital assets, now is the time to include them in your estate strategy.

Contact Cary Estate Planning today to schedule your consultation. We’ll help you build a modern, secure, and complete estate plan—one that doesn’t leave your crypto behind.

Serving clients throughout Cary, Raleigh, and the surrounding North Carolina communities.