Crypto Estate Planning: Protecting Keys & Digital Assets
Crypto estate planning ensures that your Bitcoin, Ethereum, NFTs, and other digital assets are protected and accessible after death. Because cryptocurrency relies on private keys and decentralized systems, it presents unique challenges that traditional wills and trusts often overlook. Hogan & Hogan helps clients create clear, secure estate plans for digital assets. Learn more on our Estate Planning and Asset Protection pages.
Access & Custody — The “Keys Problem”
Whoever controls the private keys controls the crypto. If keys are lost, assets are lost forever. If shared carelessly, they can be stolen. Secure custody is the foundation of sound crypto estate planning.
- Maintain a separate, secure access plan (hardware wallet locations, password managers, multisig info).
- Store documents in a fireproof safe or encrypted vault with fiduciary access instructions.
- Use institutional custody: Coinbase Custody, BitGo, or Anchorage Digital.
- Apply seed phrase sharding (divide recovery phrases among trusted individuals).
Identifying & Valuing Crypto Assets
Valuing crypto assets is complicated by volatility. Executors must locate and document wallets, NFTs, and DeFi positions. Maintain a digital asset inventory that lists platforms, addresses, and values. See Revocable Trusts for how to organize these privately.
Legal Authority Under RUFADAA
The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) governs fiduciary access. Include explicit language in wills and trusts authorizing fiduciaries to manage digital and crypto assets. Without it, exchanges may deny access or require a court order.
Taxation and Basis Issues
The IRS treats cryptocurrency as property (IRS Notice 2014-21), meaning assets receive a step-up in basis at death. Maintain transaction records and use tracking tools like CoinTracker or Koinly to simplify reporting.
Probate & Privacy Considerations
Public probate exposes wallet information and asset values. To protect privacy, hold crypto in a revocable living trust, store access details off-record, and consider professional fiduciary assistance. Learn more in our Estate Planning overview.
Multisig & Technical Planning
Multisignature wallets add protection by requiring multiple authorizations for transactions (e.g., 2-of-3 between client, attorney, trustee). Combine multisig with cold storage to reduce risk of theft or loss. See Choosing a Trustee for guidance.
Fiduciary Competence & Training
Executors must understand crypto management or delegate to experts. Include clauses allowing trustees to hire digital-asset custodians or advisors. We include this in our trust documents to protect fiduciaries.
Integrating Crypto into Estate Plans
Crypto estate planning ties together access, authorization, valuation, taxation, and fiduciary support. Document all wallets and define access for each.
Bottom Line
Crypto estate planning is essential to preserve digital wealth. Hogan & Hogan ensures your crypto is secure, accessible, and transferable within a compliant legal framework.
Talk with our digital-asset planning team today.
