Digital assets like cryptocurrency are becoming an increasingly important part of modern estate planning. But unlike a traditional bank or investment account, cryptocurrency can feel more like inheriting buried treasure without a map. Without proper planning, valuable digital wealth may be lost forever.
As a Naperville estate planning attorney, I encourage clients who hold cryptocurrency to give careful thought to how it will be handled after they’re gone. A recent article from TradingView sheds light on why this is so critical.
Cryptocurrency as Part of Your Estate
Just like traditional property, cryptocurrency must be inventoried and valued by your estate’s executor. However, if the executor is unfamiliar with digital assets—or lacks the right access—your crypto could become permanently inaccessible.
That’s why it is important to include a digital executor in your planning. This person, who may or may not be the same as your primary executor, should have both the technical knowledge and legal authority to access your digital assets.
Accessing Digital Assets After Death
Depending on where cryptocurrency is held, the process of accessing it will vary:
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Exchanges (Coinbase, Binance, Crypto.com, etc.) – Similar to a bank account, but without paper statements. A digital executor will need the death certificate, proper identification, and proof of authority to access the account.
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Self-Custody Wallets (phones, USB drives, or cold storage devices) – These require PINs, passwords, private keys, or seed phrases. Without this information, the crypto may be lost permanently.
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Exchange-Traded Funds (ETFs) or custodial accounts – May leave more of a digital “paper trail,” but still require the right credentials and documentation.
Simply leaving your password behind is not enough. In many jurisdictions, using another person’s credentials—even after death—can be considered unauthorized use if it hasn’t been properly documented in your estate plan.
Preventing Digital Wealth from Disappearing
The safest way to ensure your cryptocurrency is passed to the right beneficiaries is through clear documentation and legal planning. Consider these steps:
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Maintain a complete inventory of your digital assets.
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Share access details securely with a trusted digital executor.
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Consider splitting access details (for example, giving part of the information to two different people).
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Explore using a trust to hold your digital assets, which may provide an additional layer of security and direction.
Protecting Your Legacy in the Digital Age
As cryptocurrency continues to grow in popularity, it’s essential to integrate digital assets into your overall estate plan. By working with a qualified Naperville estate planning attorney, you can ensure that your digital wealth is preserved and transferred to your loved ones—rather than lost to the digital void.