Cryptocurrency After Death: How Heirs Find, Access and Inherit Crypto

Cryptocurrency is part of a person's estate, but how their heirs reach it depends on where it is held. An exchange can release an account to the executor once it has court papers. A wallet that only the owner could open can't be reset by anyone, so the recovery phrase or keys are everything. In the US, heirs generally take a tax basis equal to the value on the date of death, and the federal estate tax applies only above $15 million in 2026.

How does crypto work after the owner dies?

There are two main ways people hold crypto, and the difference decides what heirs can do.

• On an exchange or other custodian. A company holds the crypto in an account in the person's name. Like a bank, it has a process for deceased customers, which usually means a death certificate and court-issued letters naming the executor. Florida's digital assets law shows the general pattern for custodians: a written request, a certified death certificate and court papers naming the personal representative. Check the exchange's help center for its own steps.
• In a self-custody wallet. The owner holds the private keys, often as a recovery phrase of 12, 18 or 24 words written on paper or metal. Whoever holds the phrase controls the funds. The FTC warns that if you lose the password to your digital wallet, no one can step in to help you recover your funds.

Crypto held in an account also isn't insured like a bank deposit. The FDIC lists crypto assets among the things its deposit insurance doesn't cover.

How do you find out whether someone owned crypto?

People often hold crypto quietly, so look for traces:

• Emails from exchanges or wallet apps, including account confirmations and statements.
• Bank or card statements showing transfers to an exchange.
• Tax records. Exchanges and other brokers report to the IRS on Form 1099-DA, which covers gross proceeds from transactions beginning in 2025, and basis on certain transactions beginning in 2026. The IRS says the rules don't cover non-custodial brokers, so a self-custody wallet may leave no form at all.
• Hardware wallets, USB drives, written phrases and notes. A short list of words kept with the household papers is a strong sign.
• Wallet apps and browser extensions on their phone or computer.

Tell the executor what you find, and keep devices safe and unchanged. Our document locator checklist covers where else to look.

What should an executor do first?

1. Don't move anything yet. Don't sign in to accounts, send funds or guess at phrases. A wrong move can't be undone, and the FTC notes that crypto payments typically aren't reversible.
2. Secure the devices and papers. Keep hardware wallets, phones, written phrases and passwords somewhere safe. A locked phone may hold the authenticator app needed for exchange logins.
3. Get legal authority. Exchanges and other custodians generally want court letters before they will deal with you. See what an executor does and our probate guide.
4. Record values on the date of death. The estate and the heirs need the fair market value on that date. Take a dated record from the exchange or a price source for each coin, and ask a tax professional how to document it.
5. Contact the exchange. Ask for its deceased-account process, send the documents it lists and keep copies.
6. Be wary of "recovery" offers. The FTC says only scammers demand payment in cryptocurrency, and that no legitimate business will demand you send crypto in advance. Anyone who offers to unlock a wallet for an upfront payment or asks for the recovery phrase should be treated as a scam.
7. Get professional help for large holdings. A probate attorney and a tax professional are worth the cost when crypto is a big part of the estate.

How is inherited crypto taxed?

The IRS treats digital assets as property, not currency. That means the usual rules for inherited property apply.

As an illustration: suppose someone paid $10,000 for crypto that was worth $60,000 at death. The heir's basis is $60,000. Selling it later for $62,000 produces a $2,000 gain, not $52,000.

These are the general rules, and they have exceptions, for example for property that is only partly owned by the person who died. The final income tax return for the person who died, whether the estate files its own return and any state estate or inheritance tax involve more detail, so a tax professional should check your case. Our guides to federal estate tax and state estate taxes cover the thresholds.

How can you leave instructions so your heirs can reach your crypto?

If you own crypto yourself, a little preparation avoids a permanent loss.

1. Make an inventory. List each exchange account, wallet type and location of any hardware wallet. Don't include the phrases or passwords in this list.
2. Say where the keys are kept. Write the recovery phrase on paper or metal, store it somewhere safe and tell your executor where it is. A safe deposit box is one option, but remember that the FDIC says safe deposit box contents aren't covered by deposit insurance, and that your executor needs to know the box exists and how to get into it.
3. Don't forget a passphrase. Some hardware wallets have an optional extra passphrase. Trezor says a passphrase can't be changed, removed or recovered, that entering the wrong one opens a different, empty wallet, and that you need both the backup words and the exact passphrase.
4. Keep it out of your will. A will can become part of the public court record. Use the will to name who has authority over digital assets and keep the keys elsewhere. Our digital will guide explains the wording.
5. Consider a trust. Assets in a revocable living trust usually avoid probate, which keeps the details private. See our living trust vs will guide and the guide to bypassing probate.
6. Plan for logins. If an exchange uses an authenticator app on your phone, your executor needs a way to unlock it. See password management after death.
7. Review it every year, and whenever you change wallets or exchanges.

Some services and wallet features are marketed for crypto inheritance, such as shared-key setups or automatic release after a long period without a check-in. Look closely at who can trigger them, what happens if the company closes and whether your heirs could use them without technical skill. A plan that only an expert can run may fail when it is needed.

What about crypto outside the US?

Laws vary. In England, Wales and Northern Ireland, the Property (Digital Assets etc) Act 2025 says a thing, including one that is digital or electronic in nature, isn't prevented from being the object of personal property rights merely because it is neither a thing in possession nor a thing in action. The Act became law on 2 December 2025 and extends to England and Wales and Northern Ireland. It does not extend to Scotland. Executors there should still ask a solicitor how it applies to a particular asset.

What to do next

1. If you're an executor, secure the devices and papers, get court letters and contact each exchange before moving anything.
2. If you own crypto, write an inventory and a private note saying where your keys are kept.
3. Ask your attorney to add digital-asset powers to your will or trust.
4. Ask a tax professional about date-of-death values and the final return.