Crypto, NFTs, and Digital Assets: What Happens to Your Digital Wealth When You’re Gone?
If you own cryptocurrency, NFTs, or other digital assets, here’s a sobering question: If something happened to you tomorrow, would your family be able to access them?
For most people, the answer is no.
Unlike a traditional bank account, there’s no institution to call when a crypto holder dies. There’s no customer service line for your hardware wallet. If your loved ones don’t know your assets exist—or can’t access them—those assets are gone. Permanently.
It’s estimated that billions of dollars in cryptocurrency have been lost forever because owners died without leaving access information. And as digital assets become more mainstream, this problem is only going to grow.
The good news? With proper planning, you can make sure your digital wealth passes to your loved ones, just like any other asset.
What Are Digital Assets?
When we talk about digital assets in estate planning, we’re referring to a broad category that includes:
Cryptocurrency. Bitcoin, Ethereum, and thousands of other digital currencies that are stored in digital wallets.
NFTs (Non-Fungible Tokens). Digital art, collectibles, and other unique digital items stored on a blockchain.
Online accounts with monetary value. PayPal, Venmo, online gaming accounts with in-game currency, domain names, and online businesses.
Digital files and content. Photos stored in the cloud, digital music libraries, e-books, and content you’ve created online.
Social media, two-factor authentication, and email accounts. While these may not have direct monetary value, they often hold sentimental value and may need to be managed or memorialized after death.
Why Digital Assets Are Different
Traditional assets—bank accounts, real estate, investment accounts—have built-in systems for transferring ownership at death. Banks work with executors. Deeds can be retitled. Brokerage firms have beneficiary designations.
Digital assets don’t work that way.
No central authority. Cryptocurrency is decentralized by design. There’s no bank to call, no customer service to unlock an account. If you lose access, it’s gone.
Access requires specific knowledge. To access crypto, you need private keys, seed phrases, or passwords. Without them, even the rightful heir can’t touch the assets.
Terms of service complications. Many online platforms have terms of service that restrict transferring accounts or accessing a deceased person’s information. Your executor may face legal barriers.
Invisibility. Your family may not even know your digital assets exist. Unlike a house or a car, there’s no physical evidence. If you haven’t told someone, they won’t know to look.
How to Include Digital Assets in Your Estate Plan
The key to digital asset planning is documentation and access. Here’s what you need to do:
1. Create a Digital Asset Inventory
Start by listing every digital asset you own:
• Cryptocurrency holdings (what type, approximate value, where stored)
• Exchange accounts (Coinbase, Kraken, etc.)
• Hardware wallets (Ledger, Trezor, etc.)
• NFT collections
• Online banking and payment accounts
• Email accounts
• Social media accounts
• Cloud storage accounts
• Domain names or websites you own
• Online businesses or income streams
This inventory should be updated regularly—at least annually, or whenever you acquire new digital assets.
2. Document Access Information (Securely)
For each digital asset, document how to access it:
• Usernames and passwords
• Private keys and seed phrases (for crypto wallets)
• Two-factor authentication information
• PINs for hardware wallets
• Location of physical devices (hardware wallets, backup drives)
Critical warning: Never put private keys, seed phrases, or passwords directly in your will. Wills become public documents during probate. Instead, reference where this information can be found (“see the document in my safe deposit box” or “see my password manager, accessible using the instructions in my Letter of Intent”).
3. Include Digital Assets in Your Estate Planning Documents
Your will or trust should specifically address digital assets. This might include:
• Naming who should inherit your digital assets
• Granting your executor or trustee authority to access, manage, and transfer digital assets
• Instructions for what should happen to social media accounts (delete, memorialize, etc.)
4. Update Your Power of Attorney
If you become incapacitated, your Durable Power of Attorney should give your agent authority to access and manage your digital assets. Without this specific language, your agent may be locked out—even if they have authority over your traditional financial accounts.
5. Create a Letter of Intent
A Letter of Intent is the perfect place to include detailed instructions about your digital assets—where to find access information, step-by-step instructions for accessing wallets, contact information for any advisors who help manage your crypto, and your wishes for each account.
Special Considerations for Crypto Holders
If you hold cryptocurrency, consider these additional steps:
Consider a professional custodian. Some services now offer institutional-grade custody for cryptocurrency, including estate planning features. These may be worth exploring for large holdings.
Think about security vs. accessibility. The same features that make crypto secure (decentralization, private keys) make it vulnerable to being lost. Find the right balance between protecting your assets from theft and ensuring your heirs can access them.
Educate your executor. If your executor isn’t crypto-savvy, they may not know what they’re looking at or how to handle it. Consider naming a co-executor with technical knowledge, or leaving detailed instructions.
Understand the tax implications. Cryptocurrency is property for tax purposes. When you die, your heirs may receive a stepped-up cost basis—potentially eliminating capital gains tax on appreciation during your lifetime. But the rules are complex, and proper documentation is essential.
Don’t Let Your Digital Wealth Disappear
At The Law Offices of Mark F. Moss, we help clients create comprehensive life plans that include all of their assets, both traditional and digital. Whether you’re holding Bitcoin, running an online business, or simply want to make sure your family can access your accounts, we can help you create a plan that works.
Contact us at 904-329-7242 or visit markmosslaw.com to schedule a consultation.
Disclaimer: Reading this blog post does not create an attorney-client relationship and is not legal or tax advice. This is for informational purposes only. It is best to speak with an attorney or tax professional about your specific situation, questions, assets, concerns, and needs.