A will decides who gets your crypto, but it cannot give them access to it. This guide is part of our guide to crypto inheritance and recovery. It is general information, not legal advice. Laws vary by country and state.
Why your phrase does not belong in a will
- In many places, a will becomes a public record once it goes through probate.
- Several people, including staff, may read it during drafting.
- Copies get stored and scanned.
- Anyone who sees the words can take the funds instantly.
What belongs where
| Item | Will | Letter | Sealed backup |
|---|---|---|---|
| Who inherits | ✓ | ||
| Who your executor is | ✓ | ||
| That crypto exists | ✓ | ✓ | |
| Which wallets and exchanges | ✓ | ||
| Where to find things | ✓ | ||
| Recovery phrase | ✓ | ||
| Passphrase | Separate ✓ |
What your lawyer needs
- That you hold digital assets, and roughly what type.
- Who should receive them.
- How your executor can get practical help.
- Where your letter is kept.
They may not need amounts, and they should not need the words.
What your lawyer must not hold
Avoid giving anyone a readable copy of your phrase. If you use a lawyer as part of your storage plan, use a sealed, tamper-evident package, or give them just one piece of a passphrase, Shamir or multisig arrangement.
Questions to ask a lawyer
- Is my executor legally allowed to access my digital assets?
- Should my will define digital assets?
- Do I need a trust for this?
- How are crypto assets taxed on death in my country?
- Has your firm handled crypto estates?
Choosing an executor
Your executor may be someone who does not understand crypto. Name someone who you trust, and who is willing to find technical help. Think about whether the executor should have direct access, or whether heirs should handle it. An executor with access can take funds, so trust matters.
Exchanges and custodians
Accounts on exchanges are generally handled through the company's estate process, which usually needs a death certificate and legal documents. List them for your executor.
Keep it updated
Holdings change often, and wills do not. So keep your will general, and put the details in your letter, reviewed in your yearly health check. See how to pass crypto to your family.