Crypto in deceased estates.
For executors, estate lawyers and families. Finding the crypto someone left behind, getting access to it, valuing it at the date of death, and passing it on safely, across Australia and New Zealand.
Why crypto is hard to inherit
There's no bank to call. Crypto held on an exchange can be released to the estate through that exchange's process, but crypto in a wallet the person controlled themselves can only be moved with their keys. If nobody can find the keys, the coins are still there on the blockchain and nobody can touch them.
Often the family doesn't even know how much there was, or where. And the people who turn up offering to help are not always who they say they are.
Signs the person held crypto
Keep every device, notebook and piece of paper until someone has checked them. Things that look meaningless are often the key.
- Bank transfers to exchanges such as CoinSpot, Swyftx, Independent Reserve, Easy Crypto or Binance
- Emails or app notifications from exchanges or wallet providers
- A small USB-like device such as a Ledger or Trezor
- A list of 12 or 24 words written down or engraved on metal
- Wallet apps on their phone or computer
- Crypto mentioned in tax returns or accountant records
- Passwords or notes in a password manager or safe
- Cash withdrawals near crypto ATMs
From finding it to passing it on
Find it
Review records, devices and emails, then trace on the blockchain from exchange withdrawals to find wallets the family didn't know about.
Get access
Work through each exchange's deceased estate process, and recover self-custody wallets from partial phrases, passwords or devices.
Value it
Market value at the date of death, from reliable price sources, documented for the estate accounts and the accountant.
Secure it
Move it into custody the executor controls, so nobody else with a copy of the keys can take it.
Distribute it
Transfer to beneficiaries safely, or arrange a sale, with every step recorded.
Report on it
A written report for the estate file, or expert evidence if the estate ends up in dispute.
How it works
Talk it through
Tell me what you know and what you've found. I'll say what's realistic before you spend anything.
Secure the evidence
Devices and papers are kept safe and offline. Nothing is typed into websites.
Locate the holdings
Exchange accounts and wallets are identified and confirmed on the blockchain.
Access and value
Exchange claims are lodged, wallets are recovered where possible, and everything is valued at the date of death.
Secure and distribute
Assets move to executor-controlled custody, then to beneficiaries or to sale.
Close the file
A report of what was found, what it was worth and where it went.
Protect the estate in the meantime
Never type a recovery phrase into a website or app, and never send it to anyone, including anyone claiming to be from an exchange. Don't plug an unknown hardware wallet into a computer or try PIN guesses: some devices wipe themselves after too many wrong attempts. And be wary of anyone who contacts the family offering to unlock wallets. Grieving families are a known target for recovery scams.
Planning your own estate? Setting up inheritance arrangements now is far cheaper than recovering crypto later. Ask about it when you get in touch.
Crypto estate questions
Can crypto be recovered if the password died with them?
Sometimes. If the crypto was on an exchange, the exchange can release it to the estate. If it was in a wallet the person controlled themselves, you need the recovery phrase, or enough of it, or the wallet file and some idea of the password. Partial information is often enough to work with, which is why nothing should be thrown away.
Do we need probate before an exchange will release crypto?
Usually, for anything but small balances. Exchanges in Australia and New Zealand generally ask for the death certificate, the will, and the grant of probate or letters of administration, along with ID for the executor. Each exchange has its own process.
How is crypto valued for the estate?
At its market value on the date of death, from a reliable price source, with the time and source recorded. That figure feeds the estate accounts and the tax advice. The estate's accountant should advise on tax.
The crypto isn't mentioned in the will. Is it still part of the estate?
Yes. Crypto is property, so it forms part of the estate whether or not the will mentions it, and it's dealt with under the will or the intestacy rules like any other asset.
Someone has offered to unlock the wallet for a fee. Should we trust them?
Be very careful. Grieving families are a target for recovery scams. Never give anyone a recovery phrase, and don't pay anyone who guarantees access before they've seen what you have.