Your bitcoin isn’t just an asset; it’s a future. Ensure your loved ones can access it with a solid inheritance plan for when you're no longer here.

You’re reading Crypto for Advisors, CoinDesk’s weekly newsletter that unpacks digital assets for financial advisors. Subscribe here to get it every Thursday.

In today’s newsletter, Zak Townsend from Meanwhile outlines key tactical questions to consider when planning your bitcoin inheritance.

Then, in “Ask an Expert,” Shea Brown from Windle Wealth provides guidance on how to navigate the process once crypto is inherited.

Seven tactical questions to ask when planning to pass on your bitcoin

I recently attended the Bitcoin 2026 Conference in Las Vegas. I could see that the industry has matured.

Financial products that were once fiat-only, like mortgages and whole life insurance, are now offered to the Bitcoin community. Regulators who used to think in dollars and gold are now talking in satoshis.

But the biggest tell is the grey hairs. And heirs.

Holders who once compared how fast their cars could go from zero to 60 are now seeing who has the most cargo space in their minivans. It's family time.

When you bought bitcoin you saw the future. Now it's time to think about how that value reaches your loved ones. I know I have.

Below are seven tactical questions to ask yourself, and how to think about each, when planning to pass your bitcoin to the next generation. The right setup depends on your family, your stack and your jurisdiction, so treat these as prompts, not prescriptions. There are more, but these are the ones I'd start with.

• Does your family even know you own bitcoin? If your spouse had never heard of it, they wouldn't know to look. Setups range from no one knowing but you, to one trusted person knowing it exists, to a documented inventory of what you hold and who to call. Wherever you land, the thing to weigh is this: your family needs to know the bitcoin exists, but the note that tells them shouldn't also be the thing that lets anyone take it.
• Could they access it? Knowing it exists is not the same as getting in. The range runs from access that lives only in your head (risky, since grey hairs come with memory issues), to notes only an engineer could follow, to steps a non-technical relative could actually complete, to a plan you've tested with a small amount.
• Does a will or trust put the right person legally in charge? Reaching the coins and having the legal right to them are two different things. Without paperwork, bitcoin can sit in court while two relatives argue over it. This is true for exchanges too. A generic will that never mentions bitcoin often isn't enough, because your executor may not have clear authority to touch digital assets. This is a conversation for your estate attorney, and the options people raise with theirs include a will that names digital assets specifically, a revocable trust, a named digital executor or a whole life insurance policy that pays a beneficiary outside probate. CoinDesk has a useful rundown of inheritance strategies. The point is to ask what actually gives the right person authority over your bitcoin.
• Does your plan cover you getting sick, not just dying? A stroke or an accident can lock you out just like death can. Picture months in a hospital while someone needs to act for you, and no one legally can. Most plans only cover death; for the in-between, people look at a durable power of attorney that names someone to act, and the detail worth checking is whether it mentions digital assets by name, since a standard one often doesn't. Worth raising with your attorney, and worth briefing whoever you'd name.
• Is there a single point of failure? One phone, one backup, one exchange login. Is there one thing that, if lost, locks you out of everything? When the answer is yes, the options to spread the risk include a multi-signature setup, backups kept in a few places, or a custody service built to guide your heirs. Holders weigh convenience against resilience differently, so there's no single right answer. The question is which single loss would be catastrophic, and whether you're comfortable leaving it that way.
• Are there clear written instructions, kept somewhere safe? Your family probably isn't technical. Plain, step-by-step instructions make all the difference. Options range from nothing at all, to a sealed letter at your lawyer's office, to instructions held with a service. Whatever the form, it should say exactly what to do, in order: where the coins live, which exchanges you use, who to contact. Keep them separate from the keys themselves. Common and funny case: the instructions sitting right next to the keys. Not recommended. And whatever you write, date it and update it when things change.
• Would your backups survive a fire or a flood? A single paper backup in a desk drawer is gone the night the house burns down. Options run from that single copy (fragile), to copies kept in several places, to titanium seed plates rated for both fire and water. There are easier and more sophisticated routes too. The principle to apply, whichever you pick: more than one copy, in more than one place, built to last.

• Decide who should know the bitcoin exists, and how they'd find out without being able to take it today.
• Access and legal authority are two separate problems. A good plan addresses both.
• Make sure your plan covers a scenario of getting sick.
• Find your single points of failure and decide whether you can live with them.
• Whatever you choose, test it while you're still here to fix it and revisit it as your life and your stack change.

None of this is morbid. It's the same instinct that made you buy bitcoin in the first place: thinking in decades, not days. The right answers depend on your situation, and they're worth working out with people you trust. You saw the future once. The last step is making sure the people you love get to share in it.

Stay healthy, and take the time to make sure your loved ones enjoy what you've accomplished.

If you’re leaving crypto to someone, it’s important they understand what the next steps are. Explaining where the crypto is held determines how they access it, but how do they navigate selling, moving, or keeping it.

It’s important to slow down and make sure things are done correctly. Once trades or transfers are placed, they’re irreversible and can create tax issues they aren’t prepared for. Not understanding cost basis or what type of account they’re dealing with can cause problems of their own. Taking the time to understand what you’re doing is better than rushing the process and making a mistake.

People who inherit crypto are good targets for scams. It is important you teach your inheritors what to look out for when it comes to scams. WhatsApp messengers, or people online offering “help” are scams. Real institutional companies will not ask for seed phrases. Don’t let your inheritance go to scammers.

Q. How does account type affect inherited crypto?

Understanding what tax liability you may leave can help you choose how to structure your investments. The type of account crypto is held in can influence how it is treated when passed on.

For crypto held in a taxable (brokerage) account, it is generally treated similarly to traditional investments, like stocks. When inherited, the value is typically adjusted to the fair market value at the date of death, which may eliminate prior unrealized gains for tax purposes. Going forward, unrealized gains may no longer be subject to capital gains taxes. If sold, taxes are generally applied to any gains after inheritance, often at long-term capital gains rates.

Crypto held in an IRA or 401(k) is treated differently. These accounts generally do not receive a step-up in value. Instead, they continue to follow the rules that apply to retirement assets. Distributions are typically taxed as ordinary income, and in many cases, non-spousal beneficiaries must withdraw the full account balance within 10 years. Mixing crypto’s volatility and forced liquidation can create financial planning considerations.

Careful consideration when choosing the person to manage your assets is vital to make sure your plan works as you envisioned. This can be a stressful and emotional period for families, and the person you choose will likely be making decisions under pressure.

In most estate plans, the person in charge is there to coordinate with institutions to carry out your wishes. Bitcoin can be different. If crypto is held in a wallet, the person you choose isn’t just overseeing the process; often, they are interacting with the system directly. There is no institution stepping in to move assets or correct mistakes. If something is entered incorrectly, it may not be fixable.

Someone who can follow instructions and be patient to avoid guesswork may be more important than a financial or technical background. Being capable of acting in emotional situations, rationally, is a quality to look for. When putting systems in place to ensure your crypto is accessible, also consider making sure someone with no experience can follow the steps without guessing. In traditional planning, there’s usually a backstop; there often isn’t with crypto.

Watch of the Week

• The U.S. Senate has passed the housing bill carrying a four-year ban on a Fed CBDC with the House expected to vote soon before heading to Trump for his signature.
• The European Central Bank has secured key parliamentary backing for a digital euro, with the EU Parliament's economic committee approving draft rules after three years of negotiations.
• Japan now has a two-tier stablecoin system for retail dollar settlements.

Looking for more? Receive the latest crypto news from coindesk.com and market updates from coindesk.com/institutions.

In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.