When digital currencies came into being, many people thought they were a passing cloud and didn’t offer them any attention. However, cryptocurrencies like BTC have been around for over ten years, and many investors are adding them to their investment portfolios. The cryptocurrency market is expanding, and many estate attorneys will see their clients having them as part of their estate planning. Regarding estate administration, digital currencies have an advantage over other assets as they only require the fiduciary to have the deceased person’s passcode to access their account. Keep reading for in-depth information about cryptocurrency and estate planning.

Characteristics of virtual currencies

Cryptocurrencies have specific characteristics that make them different from the traditional stocks. For one, digital currencies are anonymous and if you fail to inform your loved ones about them, they’ll just vanish once you pass on. Regarding taxation, virtual currencies are considered as personal properties, like a car or a home.

Virtual currencies are also decentralized and lack government control. The laws governing how these virtual agencies are sometimes complex, or not existing at all. Therefore, it’s critical to think about your estate planning if you’ve crypto investments.

What is the Best Estate Planning for Virtual Currencies?

Virtual currency, another name for Digital currency, is a volatile market. Therefore, as a digital investor, you will need to take more precautions and measures to cushion yourself against high losses. The good news is that you can use the bitcoin pro app when you want the best returns from your investments. For estate planning, make sure you stick to the following points:

  1. Invest in Virtual currency that has proof of documentation. Unlike fiat money, virtual currency is untraceable, and there is no electronic or other kind of paper linking any of the parties to the transactions.
  2. Store the information about passwords and keys safely because anyone who can access them can then access your account and withdraw or transfer your investment.
  3. No government or institution so far has put measures in place to regulations for the trade. So, no one is responsible for getting scammed or if your investment will be stolen or any other malpractice.
  4. Share your keys, passcodes and passwords with your heirs. If you die without leaving that information with anyone, your investment is just lost as no one can access it.

Ways to Include Crypto In Your Estate Plan

Estate planning for your investment portfolio can be a complex topic. The emergence of cryptocurrencies has made the issue more complicated. With many investors holding massive sums of virtual currencies, the  need for estate planning becomes an essential matter. Surely, you might not wish your heirs to be entangled in endless court cases as regards this issue.

Your cryptocurrency investment is like any other and should be included in your estate plan so that your beneficiaries can access it just like the rest of your estate.

At first, putting your digital investment in your estate might seem complicated. However, there is now a new crop of lawyers and estate executors who are doing their best to understand cryptos and how you can safely include them in your estate.

Here is a guided plan of including cryptocurrency investment in your project safely for your beneficiaries to access them.

  1. While planning your estate, including a step-by-step guide to explain to your loved ones the way to your digital assets is an excellent idea, just like other assets. Nevertheless, because cryptocurrency is a little understood and evolving territory, have an executor of your will hire an attorney who deals with digital investment and understands the market.
  2. It cannot be stressed enough not to leave passwords, exchange account codes and storage wallet codes where they can be compromised. If these codes get accessed, then your crypto investment has been accessed.
  3. While leaving your beneficiaries instructions about your digital estate, subject your fiduciary to another set of passcodes, then place the codes in your Estate Plan to pass on the passcodes as part of your estate.
  4. Be exceptionally cautious when selecting an executor. If the executor turned out not trustworthy and chose to backstab you by transferring the funds themselves, there would still be no legal documentation to make them accountable, and the transaction would still be untraceable so that you would lose your investment.

Estate Planning Technologies of Cryptocurrency

Like any other estate, your first step would be to list everything you own. In this case, list all types of cryptocurrency wallets, storage you have on any of the various platforms in your trust. This way, it can be dispersed among your beneficiaries according to your wishes should something happen to you.

While you may not want to share the information with your beneficiaries at the moment, it is vital to keep your loved ones informed to a certain level to reduce their chances of being conned or scammed out of their inheritance.

It is necessary to list all digital wallets and accounts for each separate digital investment clearly and in a manner that your loved ones can easily understand. You will note that a lot of websites have two-factor authentication. So, don’t forget to include the devices that the authenticator will use for receiving the codes.

While thinking of a location for your passwords and keys, make the background as secure as possible and leave directions about accessing them in your Estate Plan.

Do not try to make it easy for your beneficiaries to access your accounts, thinking that you are helping them. You will be making it easy for hackers and thieves to get into the funds too.

Finally, do not be foolish enough to die with your wisdom in your heart. Please, speak to your beneficiaries before executing the estate plan to have an idea of implementing the Estate Plan when that day comes. It will not help anyone then.

Crypto and Trust

For security reasons, place your cryptocurrency information in trust to maintain security. Since your trust information is not open to the public, it reduces the chances of hackers and thieves getting to it.

The crypto environment is still new and still evolving, and the best way to. As only the trustee can access the information in trust, involve a will that would have to be examined by a probate court and then the public record will preserve it.

You must include your cryptocurrency investment in your estate plan. Otherwise, your beneficiaries will not be able to access it after you die.

Trust is easier to store your information in as it doesn’t have to take long for your beneficiaries to be cleared instead of a will that has to go through probate, in which time your loved ones could lose your crypto estate.

In a trustee, the information is immediately accessible to your beneficiaries.

Sharing of Keys

Due to human beings’ thieving and backstabbing nature, it is not advisable for anyone to share their private keys. When the client decides to write down their private key, let them store it in a secure but accessible location and give it to a third party.

Clients must gauge their lifetime needs and the risk that their crypto investment could be stolen or lost. Since the crypto market is completely decentralized, it is your key that decides the fate of your investment. While it ensures that only you can access your investment, losing it means even you can’t access it.

Many clients prefer to store their keys via traditional estate planning and store their keys online in a crypto wallet where they are the only ones that can access the funds. You would be well advised to share your key because you will also lose your investment if you die.


A person’s Will is a legal document showing your property, how you want someone to distribute them in case of your death, and who has to manage the property until the final devolution of the Will.

The word testament varies in meaning, where the term will refer to real property, and the Testament applies to personal property.

An executor can acquire cryptos stored in an exchange following the death of an owner through the administration process, which includes the provision of a death certificate, provision of a Testament and other testimonials.

In case a client has not shared exchange information, then take caution. Should there be no formal record of the crypto exchange in their Will, the only hope is that he mentioned it to the beneficiary.

They could also leave the key with a trusted person rather than leave it in the Will but then mention this trusted person in the Will.


A fiduciary holds a legal relationship with one or more persons and takes care of other people’s money and properties. People with vast properties that include cryptocurrency appoint a fiduciary to oversee and manage the estate because he has the qualification to deal with cryptos.


Digital currencies are a class of investment that you need to include in your estate planning. As the industry is maturing, many people are investing in it. So, the issue of how to transfer it to your loved ones once you die is critical. This guide has explored the critical points you need to consider when planning your estate with cryptocurrencies.