What Happens to Cryptocurrency When You Die?

Crypto does not automatically transfer

A blockchain does not know that an owner has died. Assets remain controlled by whoever can satisfy the wallet or custodian’s access rules. Without a valid recovery path, self-custodied assets may be permanently inaccessible.

Custodial and self-custody accounts differ

An exchange may have an estate-claims process and identity requirements. A self-custody wallet generally depends on keys, recovery phrases, devices, passphrases, or multisignature participants. Your plan should identify which model applies to each holding.

Build instructions without creating a theft kit

• Inventory wallets and custodians without exposing keys
• Document devices, wallet software, and any additional passphrase
• Store recovery material encrypted and separately from public instructions
• Name the appropriate legal and technical contacts
• Test recovery with a spare wallet or documented procedure

Common failure cases

• A recovery phrase exists but nobody knows where
• Instructions omit an additional wallet passphrase
• A hardware wallet fails and no tested backup exists
• One person receives both the secret and immediate authority too early
• Tax and legal obligations are ignored

Coordinate technical and legal planning

Possession of a key and legal ownership are different questions. Work with qualified estate and tax advisers in your jurisdiction, keep values and account details current, and never publish recovery material in a will that may become public.