Bitcoin and Your Estate: Making Sure Your Family Can Inherit It | The Coin Shack
Bitcoin and your estate
Bitcoin held in your own wallet does not pass on by itself. If nobody knows it exists or how to reach it, it can be lost for good. A simple plan, made with your lawyer, avoids that.
TL;DR
- Tell your executor you own Bitcoin and where the instructions are, without putting the recovery words in your will.
- Write a plain letter: which wallets, where the backups are, and who to call for help.
- Avoid one person holding everything: a multi-signature setup lets family and an advisor recover it together.
- Make the plan with your lawyer. We are happy to join the call.
Tell your executor it exists
Your will and estate documents should mention that you hold Bitcoin and where to find instructions, without including the recovery words themselves.
Leave clear instructions
- Which wallets you have and what type they are
- Where the backups are stored
- Who to contact for help, for example our team
- A short, plain-language letter explaining the steps
Avoid a single point of failure
A multi-signature wallet can be set up so your family, with a trusted advisor, can recover the Bitcoin without any one person holding everything. Your lawyer can advise how this fits with your estate plan.
We can help
Our OTC Desk works with families on custody setups that are safe today and can be inherited later, and we are happy to join a call with your lawyer. We do not give legal advice.
Questions
Should I put my recovery words in my will?
No. A will can become a public document. Keep the words in secure storage and let the will point to the instructions.
Can my family recover Bitcoin from a hardware wallet without me?
Yes, with the recovery words and instructions. That is why the plan and the backups matter.
Do you work with estate lawyers?
Yes, we are happy to join a call with your lawyer.
