Crypto inheritance: what happens to your bitcoin when you die?

It is the least sexy topic in crypto — and one of the most important. Self-custody means nobody can touch your coins without your keys. That is exactly its strength, and its problem: if you die without a plan, your heirs cannot access them either. Estimates of bitcoin lost forever run into the millions of coins, and part of that is simply unarranged inheritance.

The dilemma: accessible to heirs, unreachable for thieves

A good inheritance arrangement balances two opposing demands. Your seed phrase must not exist digitally anywhere and nobody may use it now — but after your death, the right people must be able to find it and understand what to do with it.

How to arrange it concretely

1. Make an inventory. Which wallets, exchanges and amounts exist? Keep this list (without keys!) with your important papers. Heirs cannot search for something they don't know exists.
2. Separate the instruction from the key. An instruction letter (‘there is a hardware wallet, the recovery phrase is at location X, this is how it works’) must never sit in the same place as the seed phrase itself.
3. Store the seed durably and safely. On metal rather than paper, in a safe or with a notary in a sealed envelope. Never as a photo or in the cloud.
4. Consider a two-step solution. A passphrase (25th word) kept with a different person or place than the seed means one find is not enough for a thief — but together it is enough for your heirs.
5. Mention it in your will — without details. Have a notary record that crypto exists and who may dispose of it; refer the technical instruction to your separate letter. Crypto falls into the estate and counts for inheritance tax in most countries.
6. Exchange balances: check the bereavement procedure. Regulated platforms such as Kraken and Finst have procedures where heirs can gain access with a certificate of inheritance. That sometimes makes an exchange balance more practical for smaller amounts than self-custody.
7. Practice once with your trusted person. The best instruction is a tested one: let your partner or child watch once how recovery works — with a test wallet, never with the real seed.

Maintain it

An inheritance plan is not a one-off job. Check yearly whether the list is correct, the locations still exist and your trusted people are still the same. Moving house, switching wallets (hardware wallet guide) or a substantially grown portfolio — update the plan.

Sources: Kraken, Finst. Last checked: 14 July 2026. This article is general information, not legal or tax advice — consult a notary or estate planner for your specific situation.