Cryptocurrency and Digital Assets After a Death

Cryptocurrency presents some of the most challenging estate administration problems of any asset type. Unlike a bank account, cryptocurrency has no central authority to call and no ability to "reset" access — if the private key or seed phrase is not found, the assets may be permanently inaccessible. This guide explains the key scenarios and what families need to do.

The Fundamental Problem

Cryptocurrency ownership is controlled by cryptographic keys — specifically a private key (or a seed phrase that generates it). Whoever holds the private key controls the funds. This is true regardless of legal ownership, estate authority, or court orders.

There are two main ways the deceased may have held cryptocurrency:

1. At an exchange (custodial): Held at Coinbase, Kraken, Gemini, Binance.US, etc. — the exchange holds the private keys on the user's behalf. This is similar to a bank account and can be recovered through the exchange's deceased account process.
2. In a self-custody wallet (non-custodial): Held in a software wallet (Metamask, Exodus, Trust Wallet) or hardware wallet (Ledger, Trezor). The private key and/or seed phrase (12 or 24 words) is the only access mechanism. Without it, the crypto may be inaccessible permanently.

Exchange-Held Cryptocurrency

How to recover it

If you know the deceased used a cryptocurrency exchange:

1. Identify the exchange — check email for account confirmations, app purchases, bank statements for exchange-related transactions
2. Contact the exchange's support/estates team — most major exchanges have a bereavement or estate process. You will typically need to provide:
   • Certified copy of the death certificate
   • Government-issued ID for yourself
   • Proof of your relationship or executor authority (letters testamentary)
   • The deceased's account information (email address linked to the account, if known)
3. The exchange will verify your claim and transfer funds to an account you specify, or help you establish an estate account

Exchange-specific guidance

• Coinbase: Has an established deceased account process — search "Coinbase deceased customer" in their Help Center
• Kraken: Contact support with estate documentation
• Gemini: Has an estate process; contact their support team

Self-Custody Cryptocurrency

Finding the seed phrase or private key

For self-custody wallets, finding the seed phrase or private key is everything. Look for:

• A physical paper or metal card — seed phrases are often written down on paper or stamped into metal for durability. Check safes, filing cabinets, safety deposit boxes, drawers, and places the deceased used for valuables.
• A password manager — the seed phrase may be stored in 1Password, LastPass, Bitwarden, or a similar app
• Encrypted files — look for files with names like "seed," "wallet," "crypto," "recovery phrase" on computers and external drives
• The physical hardware wallet device — if a Ledger or Trezor hardware wallet is found among the deceased's belongings, it stores the private key. Access requires the PIN (typically 4–8 digits). If the PIN is unknown, after a certain number of wrong guesses, the device wipes itself.

If the seed phrase cannot be found

Unfortunately, if the seed phrase or private key cannot be found, self-custody cryptocurrency is generally unrecoverable. There is no company to call, no court order that can help, and no technical workaround for a missing private key. This is a known problem for heirs of cryptocurrency holders and one reason that estate planning for crypto is so important.

Valuing Cryptocurrency for Estate Purposes

Cryptocurrency is a taxable estate asset. For estate tax purposes, its value is determined by the fair market value on the date of death. For inherited crypto, the cost basis is stepped up to this fair market value (just like other assets). Keep records of the value at the date of death for tax reporting purposes.

Estate Planning Recommendations (For the Living)

If you hold cryptocurrency, the most important thing you can do for your heirs is to plan ahead:

• Document all crypto holdings (exchanges and wallets) in a secure location accessible to your executor
• Store seed phrases in a fireproof location (or a professional key storage service) with access instructions for your executor
• Consider a multi-signature wallet setup or a professional custodian that has an estate transfer process
• Include crypto holdings in your will and estate plan, and provide your executor with the information they need

For the complete accounts management overview, see our managing accounts guide. For protecting digital assets from identity theft, see our article on protecting online financial accounts after a death.