How To Inherit Your Crypto The Right Way

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Let’s face it – we humans have a proven mortality rate of 100%. Despite that, maybe one of our readers finds this topic morbid; we must dare to ask for the answer: what happens with your cryptocurrency holdings when we die, and how do you inherit your Crypto? You probably have a family around you and use cryptocurrency to invest in your and your family’s future.

With the exploding growth rates in the past and the awareness that we are still in the early adopter stage, it seems to make sense to invest a part of your savings into promising blockchain projects by purchasing and holding coins and tokens. While it is another question about which coins to hold for the long run (we will feature this soon), there is a more basic question to answer.

Inherit your Crypto Plan B

Imagine you built a strong and growing portfolio. As you are smart, you don’t leave the coins and tokens within an exchange and withdraw them to your Crypto wallet(s), having the good feeling of saving them in secure storage. Whether you are run over by a truck or hit by a piano dropped from the 5th floor, it won’t be easy to inherit your Crypto from your family, the wealth you accumulated with your crypto portfolio.

Within the next decades, there will likely be a growing number of orphaned wallets – money that will never do anything anymore.  Our goal with this post is to enable and motivate you to prepare a document you can pass over in case anything tragic happens.

Cryptocurrency coins and tokens are not (yet) regulated by any authority, and it will be hard for your family to claim/inherit your Crypto or any of your holdings legally if you pass away. We need a document that enables your loved ones to get ahold of your crypto belongings by providing all the needed data to withdraw them.

There are times when emergencies occur in our lives. When we die, our investments can either be protected or in an unorganized state that might leave your family fighting over who gets what or even who gets anything.

To prevent this issue, it’s best to start protecting your crypto assets now. This guide will help you along each step of the way.

What Happens To My Crypto Assets When I Die?

Cryptocurrencies are unique investments because of the inclusion of blockchain technology. Blockchain technology is a revolutionary concept as it allows crypto investors to encrypt their assets and is a good investment to see your money grow over time.

Here’s an example situation in regards to crypto inheritance:
Bill bought Bitcoin in 2016 for about $2,000. After investing, he did his best to secure his crypto assets by enabling a Two-Factor authentication security system and protecting his private keys.

Bill did everything and hoped his children would benefit from his investments. After his unexpected death, Bill didn’t pass his security information to his children, an executor of his estate, or a trusted friend. As a result, Bill’s children could not access their father’s investment portfolio.

You don’t want to experience this scenario. Since your crypto assets are encrypted, it will be difficult for them to receive them unless you directly tell them your keys. Take the following steps to pass your crypto inheritance to your children.

So what would happen in such a case? Your coins would collect dust on the blockchain. There are thousands of Bitcoins lying around, which nobody can access anymore. The bare answer is that nothing ever happens again with these funds.

How Can I Protect My Crypto Assets?

Before using any services, placing your important information in a written letter is best. This is the most transparent way to protect your accounts; your family will easily understand the information. Later in this text, we will show you how to pass this information safely.

Passing your crypto to your children

If you plan on passing your crypto kingdom to your children or grandchildren, then you need to take the following steps:

  • Copy your account details, private keys, etc. (basically all the information needed to access your crypto portfolio) on paper or in a memory stick. Ensure the information is in your safe or sent to an executor. Doing this makes it easy for your family to access your crypto portfolio.
  • Some wallets enable you to print out a paper wallet – do it! Research how these funds can be restored and write a step-by-step explanation.
  • Also, make sure you contact the current holder of your private keys so your relatives can find them. This is in case you hold your cryptos somewhere where you don’t have access to the private keys. However, this is not generally advisable, and you should change that.
  • Place your cryptos in your will. This ensures that your assets will be sent to the correct parties. Like with every last will – a clear arrangement of how to share the available assets between your loved ones is good to avoid fights and other nasty things.
  • Give them withdrawal information. You should give them a list of your crypto exchange logins/wallet information so they can take the assets and convert them into fiat money. Ensure this information is detailed so they can utilize your assets correctly.
  • If you use a hardware wallet like Ledger, include a very easy-to-understand instruction on how to work with it. Always have the not-so-tech-savvy in mind!

You want to ask yourself the following questions and follow this route:

  • Where do I hold my coins and tokens?
  • If on an exchange, Write down the URLs and passwords, how to convert them into BTC on that exchange (if it is not a fiat bridge exchange like Kraken or Coinbase), and how to transfer them to, e.g., Coinbase and liquidate the holdings to fiat.
  • If using on-web wallets, Explain how to log in, the private keys, and how to withdraw them to a fiat bridge exchange. If you use a second password for transactions, like with, don’t forget to add it.
  • If you are interested in hardware wallets, print out the easiest guide about using such a wallet, along with the needed details and directions for a fiat bridge exchange. Remember that this can become challenging to some, so make sure it is crystal clear.
  • If you hold ICO tokens, write down an explanation on how to sign up for the project’s newsletter or social media channels, how to find the coin/token in the future on Coinmarketcap, and which exchanges they have hit. Don’t forget the login data for the ICO wallets.
  • Ask yourself if your directions are safe to understand – and imply solutions for cases like if a web service closes down. Did you mention alternatives? Imagine you wrote all your explanations/directions on how to convert to fiat for Mt.Gox! Crypto is (yet) an unstable field, and we will see many shifts and new routes in the upcoming years – make your information future-proof. Try step-by-step, guys, and do them yourself to discover pitfalls and unclear wording.

Not the Best Way

All this gathered data can be saved in .txt files. Then zip this .txt file, protect the zip file with a password, and save it on a USB. Find a trustee and inform them about that password verbally. Create remarkable, logically built passwords that they will likely remember.

If you hand it to your wife, you might choose a password you both use and only you know. A good example would be your year of birth, the name of your kids with a colon between them, and your year of marriage at the end, e.g., 1964Sally:Mike: Fred1987. Make it safe but not fancy-safe to reduce the chances of not recalling it. Always consider the human factor and build an equally safe and easy-to-use solution. This USB can be kept in a safe along with your last will.

Are There Any Services That Can Help?

Some reputable exchanges have policies to help pass your information to your kin. But, this information isn’t readily available to the public to prevent fraudulent activities. Criminals could use a fake death certificate to inherit your Cryptos.

The one thing that you can do is create a strong password for all of your assets. As your investments gain value, your passwords must strengthen to prevent unauthorized access.

Do you think your Facebook password should be the same one you use for your $100 crypto account? It is just $100, come on!


Take this rule of thumb. The higher the value of your crypto assets, the more complex your password needs to be. However, some people use the same passwords for their accounts because they’re bad at remembering them. That’s why a good password-storing system could be an option to ensure that your crypto assets can be passed to your children. However, make sure to set these kinds of services up bulletproof.


One of our readers suggested you use Bitwarden to protect your crypto accounts (we’re always open to new ideas!). Here are some reasons why:

  • It can create strong passwords, potentially protecting your wallets/accounts from getting hacked.
    Ensuring that your wealth is not lost after your death. This is important for people who hold any crypto assets and want to pass them on to their family members.
  • Make a fail-safe password retrieval mechanism that gives you access to your accounts if you forget the password information.
  • In your Bitwarden account, create an emergency email for your family member (they will also need a Bitwarden account). This will allow you to give them your Bitwarden account information if you die. Make sure that the nominee is a trusted family member so that you can protect your assets and retrieve your information.
Easy setup guide for beginners

Is there a Crypto Platform for Crypto Inheritance?

Who would have thought about that? A crypto Platform was created addressing Safe Haven, which might become another option to protect your assets. They create a platform where you can transparently and safely share your private keys with your children or stakeholders so they can inherit your Crypto.

Safe Haven aims to deliver this by utilizing their Trust Alliance Program, Escrow Protocol, and TFC Share Distribution Key. Their main goal is to help crypto investors have power over their assets. If the investor passes, then a member of the Trust Alliance Program will pass the legacy to their stakeholders or children.

The Trust Alliance program comprises multiple legal entities with a secure relationship with Safe Haven. Lastly, how does the SHA token play a role in this? Safe Haven’s developers explained that SHA tokens will be a valid payment service.

For instance, if a legal entity wants to register information in the blockchain, it will need SHA tokens to complete the procedure. This means your information will stay protected and require SHA tokens to make any changes to your inheritance policies.


Only death and taxes… You name it. Ensure that your family knows the Crypto taxes they’ll have to pay when they inherit your Crypto. Check your country’s tax policies and ensure your family knows this to meet their guidelines. As they are still rare, you might want to research a tax consultant who is aware of Crypto and add the contact information for future reference.


If you want to clear this field for your loved ones who inherit your Crypto, you can purchase the portfolio tracker from You can connect your accounts to the tool or deploy your holdings manually, and it will be able to spit out all the needed data for your accountant.

In the end, your assets are an important benefit to your family. So it’s best to be proactive and protect them so your kin can use them effectively. Follow this guide on how to inherit your Crypto, so it will be passed on to the next generation and help your family in the future!

 Frequently Asked Question: How to inherit your Crypto.

How can I ensure my loved ones inherit your Crypto?

You should include cryptocurrencies in your inherit estate plan to ensure they can be inherited.
This involves specifying in your will who you want to inherit your digital assets and providing necessary information, such as wallet keys and instructions on how to access them. Consider using a digital executor and ensure they have the knowledge or instructions to manage and transfer your cryptocurrency assets.

What are the legal considerations for inheriting cryptocurrency?

The legal considerations for inheriting cryptocurrency can vary by jurisdiction. Generally, cryptocurrencies are treated as property for inheritance purposes, meaning they can be passed on to heirs in a will or through the default laws of intestacy if there is no will. It’s important to consult a legal professional knowledgeable about estate planning for digital assets in your area to ensure compliance with local laws and tax implications.

How do heirs access inherited cryptocurrency?

Heirs can access inherited cryptocurrency using the deceased’s private keys or seed phrases. It is crucial for the person planning to pass on their cryptocurrency to leave detailed instructions on how to access and manage digital assets. Accessing the inherited cryptocurrency can be difficult without the necessary keys and information.


This article is for educational purposes only. We are no financial advisors. The information provided from SmartOptions is for informational purposes only. It should not be considered legal or financial advice. You should consult with a financial advisor or other professional to find out what may be best for your individual needs and risk tolerance.

Please do your own research and never let anyone trade your account for you. We do not support or advertise Fund Management in any kind of manner. We solely review signal providers, their work/analysis/provided education. Please read this disclaimer and leave the website if you disagree with it.


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  1. Actually. This is a good writeup and a good question we should ask our selves. What happens when we pass on with our Cryptos? Millions of Dollars worth of Cryptos are gone forever if nothing is done to reclaim them. The idea of decentralization being careless about what happens if we pass on or lose our key to our wallets is stupid in this modern civilization of stunning technology is to say the least stupid. For instance I accidentally lost my private key and password and since then can not have access to my account in spite of the fact that it is a web based wallet. I think that something should be done to rectify such incidences. I have written to them several times even forwarding my confirmation email and registration to them without a useful reply. But the fact is they can help since it is a web based wallet if they want to do so.

    • Yeah, you are very right – however, we have to keep in mind we are in early stages and it is very likely that these pitfalls will find a solution soon.


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A creative entrepreneur in the tech space, whatever that is as long as we keep the human connection. I love to learn new things, Hands-on Crypto enthusiast with an interest in investing in general. Accepting the world for what it is and learn from its history. Anything you can say has been said already we only change the wording to the times we live in.