Crypto is typically held in self-custody with private keys only you know. Without a plan, your crypto dies with you.
The Problem
| Issue | Consequence |
|---|---|
| No one knows your seed phrase | Funds are lost forever |
| Family doesn’t know you have crypto | No one looks for it |
| Crypto on exchanges | May be frozen or escheated |
| No will mentioning crypto | Distributed by default intestacy rules |
| Offshore exchange | Complex legal jurisdiction |
What to Prepare
| Item | Details |
|---|---|
| List of holdings | Which coins, how much, where |
| Wallet locations | Hardware wallet, software wallet, exchange |
| Seed phrases | Securely stored |
| Exchange accounts | Email, username |
| 2FA backup codes | For account recovery |
| Instructions | What to do with the crypto |
Safe Storage of Inheritance Info
| Method | Risk | Recommended? |
|---|---|---|
| Safety deposit box | Physical loss, delays | Yes |
| Lawyer / solicitor | Legal costs, delays | Yes |
| Password manager (shared) | Digital attack | Yes, with caution |
| Written note in house | Fire, theft | No |
| Cloud storage alone | Hacking | No |
| With the hardware wallet | Single point of failure | No |
The Split Storage Approach
| Location | Contents |
|---|---|
| Will | Statement that crypto exists + executor instructions |
| Solicitor | Basic list of holdings |
| Password manager (shared with family) | Exchange credentials + 2FA codes |
| Safety deposit box | Hardware wallets + seed phrase backups |
Never put actual seed phrases in your will. Wills become public after probate.
Crypto-Specific Will Clauses
| Clause | Purpose |
|---|---|
| ”I leave my Bitcoin wallet to [beneficiary]“ | Specific bequest |
| ”I leave 50% of my crypto portfolio to [charity]“ | Percentage bequest |
| ”My executor should liquidate crypto and distribute proceeds” | Cash inheritance |
| ”My crypto should be transferred to [beneficiary’s wallet]“ | In-kind transfer |
Executor Considerations
| Consideration | Action Needed |
|---|---|
| Does executor know crypto? | Choose someone crypto-aware |
| Do they know where keys are? | Clear instructions |
| Are there exchange accounts? | Provide login details |
| What about tax? | Crypto is subject to Inheritance Tax |
Inheritance Tax on Crypto
| Situation | IHT Treatment |
|---|---|
| Crypto held at death | Included in estate value |
| Transferred within 7 years of death | May be subject to IHT |
| Given to spouse / civil partner | Exempt from IHT |
| Crypto in trust | Depends on trust type |
IHT is 40% on value above £325,000 (nil rate band) plus residence nil rate band up to £175,000.
Bottom Line
Without a plan, your crypto could be lost forever. Store seed phrases securely but not in your will. Tell a trusted person how to access your holdings. Consider a solicitor or password manager for secure storage. Executors need clear instructions. Don’t let your crypto vanish when you do.
Building Your Inheritance Plan
A complete crypto succession plan has three parts that work together: documentation, secure storage, and clear instructions for your family.
Start with documentation. Write a detailed inventory of every crypto asset you hold — the coin, the approximate amount, the wallet type (hardware, software, or exchange), and where each is stored. This list is not a seed phrase; it is a map so your family knows what exists and where to look. Keep it somewhere private but findable, such as a password manager shared with a trusted spouse or child.
Next, secure the private keys. The safest approach is split storage: a solicitor or lawyer holds a basic list of your holdings, a shared password manager holds exchange credentials and 2FA codes, and a safety deposit box holds the hardware wallets with their seed phrase backups. Records live in a password manager, while physical seed phrases live in a deposit box so no single location — and no single point of failure — holds everything needed to move the assets.
Finally, write instructions your executor can actually follow. Tell them which beneficiary should receive which wallet, whether they should liquidate the crypto to cash or transfer it in kind, and who to contact if they get stuck. Revisit this plan every year as your holdings and family circumstances change, and make sure at least one trusted person knows the full picture. The cost of this preparation is a few hours; the cost of skipping it is often the permanent loss of the entire portfolio. As this guide, our related reading on the best crypto exchanges, and the security guides in our safe-crypto section make clear, the practicalities are tractable once you decide to act.