Inherited crypto: a guide for executors and families
If someone close to you has died and left cryptocurrency, or you are the executor of their estate, this page sets out what to do first, what to avoid, how to find wallets and exchange accounts, and where the UK and US tax and probate rules come in. It is written for people who are not crypto experts and are dealing with a bereavement.
New to the terms? Words such as seed phrase, hardware wallet and probate are explained in the glossary, and short answers are in the FAQ.
Key takeaways
- There is rarely a need to rush. Coins in a wallet do not vanish because the owner has died; the early risks are theft, scams and well-meant mistakes (first steps).
- Never type recovery words into a website, app or form, and treat anyone offering to "recover" crypto for an upfront fee as a likely scam (scam warnings).
- Look for crypto the way HMRC suggests: bank and card statements, emails, apps, devices, papers, and asking family and advisers (finding wallets and accounts).
- Exchange accounts are claimed with documents; self-custody wallets need the backup, restored carefully on a new device (exchanges, restoring safely).
- In the UK, crypto counts for Inheritance Tax at its date-of-death value, even if nobody can reach it yet (tax and probate).
- In the US, heirs generally take the date-of-death value as their tax basis, Form 706 is needed only above $15,000,000 for 2026 deaths, and custodians answer a written RUFADAA request with documents (US executors and heirs).
Summarised from this page only. Follow each link for the detail and the sources behind it. Educational information, not advice.
What should you do in the first days? Beginner
- Take your time. The usual steps after a death come first: in England and Wales, registering the death, telling government (the free Tell Us Once service reports a death to most government departments, but not to private firms such as exchanges) and arranging the funeral (GOV.UK: what to do after someone dies; Tell Us Once). Coins held in a wallet stay where they are while you do this.
- Secure papers and devices, as found. Gather anything that might relate to crypto into one safe, private place: notebooks, letters of instruction, metal plates or cards with words on them, small USB-like devices, phones, computers and passwords. Do not throw anything away, do not wipe or sell devices, and limit who knows what you have found.
- Do not guess PINs. Hardware wallets wipe themselves after a set number of wrong PINs (three on Ledger devices, Ledger). If the written backup has not been found yet, a wipe could destroy the only working copy.
- Do not post about it. Mentioning an inheritance of crypto on social media can attract scammers and, in rare cases, physical threats (see case files).
- Work out who has legal authority. Usually the executor named in the will, or an administrator if there is no will. In England and Wales that authority is confirmed by a grant of probate or letters of administration (GOV.UK); in Scotland by confirmation (mygov.scot); in the US by letters from the probate court (see the US guide). Whoever holds the keys can technically move self-custody coins without any court document, but acting with clear authority protects you; Farrer & Co notes that a grant is not always needed to move such crypto but does prove the representatives' authority (Farrer & Co, 2021).
- Keep a log. Note what you found, where and when, who was present and every step you take. It helps with valuation, tax returns and any later questions from beneficiaries.
Checked on · steps compared with the sources linked
Scams that target bereaved families and executors
- "Recovery" services: the FCA warns about recovery-room scams that approach people who have lost money and offer to get it back for an upfront fee, sometimes described as a tax, solicitor or administrative fee (FCA). The FBI has warned about fake companies claiming they can trace and recover lost crypto (FBI IC3, 2023) and about fictitious law firms claiming to work with government agencies (FBI IC3, 2024).
- Fake support: exchanges and wallet makers do not ask for recovery words. Reach any company by typing its address yourself, not through a link in a message or a search advert (see recovery scams and common scams).
- "Seed checker" websites and apps: anything that asks you to type the words in to "check" a balance or "validate" a phrase can steal everything.
- Pressure: urgency, secrecy and requests for upfront payment are warning signs. In the UK report fraud to Report Fraud (the police service that replaced Action Fraud); in the US to the FBI's IC3.
Checked on · compared with the FCA and FBI pages linked
How do you find wallets and exchange accounts? Beginner
HMRC's manual gives personal representatives a checklist: look for accounts with exchanges or trading platforms, payments to exchanges on bank and card statements, emails mentioning crypto or wallets, apps and online accounts, wallet software on computers and phones, papers and notebooks with wallet information or recovery phrases, and ask family members and advisers (HMRC CRYPTO25000). What each clue may mean:
| What you find | What it may mean | What to do |
|---|---|---|
| Payments to an exchange (Coinbase, Kraken, Revolut and so on) on bank or card statements, or emails from one | A custodial account: the exchange holds the coins | Use the exchange's official bereavement process (below). No recovery words needed |
| A small USB-like device (Ledger, Trezor, COLDCARD, BitBox and others) | A hardware wallet. The coins are not "in" it; the written backup is what matters | Keep it safe and unpowered; do not guess the PIN; look for the backup |
| 12, 18, 20, 24 or 33 words on paper, a card or metal | A recovery phrase (or one share of a split backup): whoever has it can take the coins | Do not photograph, type or copy it. Seal it in an envelope and keep it with your other papers. See seed phrase basics |
| A note about a "passphrase", "25th word" or "hidden wallet" | An extra secret that opens a different wallet from the same words | Keep it separate from the words; it may be essential to the restore (passphrases) |
| Several devices, cards or shares, or papers mentioning "multisig", Casa, Unchained or a "wallet configuration" | A multi-key set-up: several keys are needed, and sometimes a configuration file | Do not try to restore piecemeal. See steps for an heir; if a provider is named, contact it through its official site |
| A crypto app on a phone or computer | A software wallet or an exchange app | Leave the device on charge and unchanged; do not uninstall or reset anything |
| A letter of instruction or inventory | The owner's own plan | Follow it, with the help it names. Compare with the executor template |
Checked on · HMRC checklist compared with CRYPTO25000; the clues and actions are our own summary
How do exchanges handle a death? Beginner
An exchange account is usually the simplest part: the company holds the coins and releases them to the person with legal authority. These are the providers' own help pages; reach them by typing the company's address yourself.
| Provider | What their page says (in short) | Official page |
|---|---|---|
| Coinbase | No beneficiary option for individual accounts. Asks for the death certificate, probate documents (for example probate, letters testamentary or administration, or a small estate affidavit), photo ID of the person named in them and a signed letter of instructions, through its Executor Services form | Coinbase Help |
| Kraken | No beneficiary option. Asks for a colour image of the official death certificate, the document appointing the legal representative, their photo ID and a signed, dated letter | Kraken Support |
| Gemini | Does not offer beneficiary designation; contact its support | Gemini Support |
| Revolut (UK) | Bereavement cases by email only; crypto is sold and the value paid out in money | Revolut Help |
Checked on · Coinbase and Kraken pages re-read; Gemini and Revolut as checked on 24 October 2026 (their sites block our checker)
More detail, including what happens to the crypto: UK exchanges and US exchanges. Ask each exchange for a statement of holdings at the date of death, which you will need for valuation.
How do you restore a self-custody wallet safely? Intermediate
- Wait until you have authority and a plan. Agree with the other executors who will do what, and who will be present.
- Use a new hardware wallet bought direct from the maker, not the deceased's phone or computer and never a website. Set it up yourself (set-up checks).
- Restore on the device itself, entering the words only on the device. Include the passphrase if there is one.
- If the balance shows zero, do not panic. The wallet may use a different format or account path. Work through the restore checks and the per-wallet format and path table; the community site Wallets Recovery lists which paths popular wallets use. It is a reference list: do not type words into any tool.
- Move to a new wallet controlled by the estate. Farrer & Co recommends personal representatives move the assets to a new wallet whose key only they know, in case anyone else knew the old key (Farrer & Co). Send a small test amount first, write down the new backup properly (start here) and keep the old one sealed.
- Record values and dates for every holding at the date of death and at every later sale or transfer.
If you need technical help, choose someone you have found and checked yourself, and stay present while they work. Never use someone who contacted you first. The Law Society of Scotland Journal article notes that solicitors may say they are not responsible for the technical side and recommend a specialist digital expert (Law Society of Scotland Journal).
Checked on · steps compared with the sources linked
What about tax and probate? Intermediate
| Question | United Kingdom | United States |
|---|---|---|
| Is crypto taxed at death? | Yes, it is part of the estate for Inheritance Tax at its date-of-death value (CRYPTO25000). See IHT and IHT step by step | Federal estate tax applies above the exclusion, plus some state taxes. See estate and gift tax and state taxes |
| Which forms? | On IHT400, confirm whether cryptoassets are held and report them in box 76 (HMRC newsletter, February 2026). Many estates are "excepted" (excepted estates) | Form 706 for larger estates and Form 1041 for estate income (Forms 706 and 1041; IRS: digital assets) |
| The keys cannot be found | Still report it: explain why it is inaccessible and the believed value in the IHT400 additional information box (CRYPTO25000). See HMRC's view | See lost or stolen crypto |
| Tax when heirs later sell | Heirs generally take on the date-of-death value as their base cost (CGT for executors and beneficiaries). No IHT loss on sale relief for crypto (CRYPTO25000) | Basis is generally stepped up to date-of-death value (IRC §1014; step-up) |
| Probate | Probate, confirmation and the executor's job | What the executor does and small estates |
Checked on · UK HMRC points compared with the pages linked; other cells point to sections of our guides, which carry their own dates
US detail for executors and heirs, including basis, Form 706 and the Form 1040 question, is in the next section.
What do US executors and heirs need to know? Intermediate
This section is for people dealing with an estate under US law. It sets out the order of things, what a custodian such as an exchange can ask for, how heirs are taxed and which federal forms come into it. The detailed rules live in our US estate planning guide; here we link to its sections rather than repeat them. State law varies, so treat this as a map, not advice.
What should you do before moving anything? Beginner
- Get authority first. In most cases that means letters testamentary or letters of administration from the probate court, or a small-estate affidavit where state law allows one (what the executor does, small estates). The IRS describes the personal representative's job as collecting the assets, paying the debts and distributing what is left (IRS Publication 559).
- Leave devices as found. An American Bar Association article for estate lawyers says a hardware wallet found after a death should not be connected to a computer, updated or reset, and no PIN should be guessed, because a few wrong entries can erase it (ABA, Brandi and Hoffman, December 2025).
- Record date-of-death values now. Heirs' tax basis and any Form 706 both start from the value on the date of death, so save exchange statements and a dated price source for every holding (basis).
- Write to custodians, do not log in as the deceased. Use each exchange's own bereavement process (exchanges) and the RUFADAA request below. Using someone else's login can breach the provider's terms and, as the ABA article warns, privacy law.
- Restore self-custody wallets only with a plan, on a new device, and move to an estate-controlled wallet after a small test (restoring safely).
- Talk to a tax adviser before selling. A sale is a taxable event, and timing can matter for estate tax valuation and the estate's own income tax return (digital asset question).
Checked on · steps compared with IRS Publication 559 and the ABA article linked; the order is our own summary
How do you ask a US custodian for access under RUFADAA? Intermediate
Evidence: Grade 2 Primary documentation The model act's own text, published by the Uniform Law Commission. Each state's enacted version can differ.
The Revised Uniform Fiduciary Access to Digital Assets Act lets fiduciaries ask custodians (businesses that hold an account for the user, such as exchanges and email providers) for access. It cannot produce a recovery phrase that only the deceased knew. How it works, what each state has enacted and its limits are in the US guide: RUFADAA, which states and how US exchanges handle a death. In the model act (Uniform Law Commission: final act with comments), the request from a personal representative works like this:
| Step | What the model act says (our summary) | Section |
|---|---|---|
| What you send | A written request (on paper or electronic), a copy of the death certificate and a copy of your letters of appointment, a small-estate affidavit or a court order. Many states require certified copies | §8 |
| What the custodian may also ask for | The account number, username or other identifier; evidence linking the account to the deceased; an affidavit that disclosure is reasonably necessary to run the estate; or a court finding on either point | §8(4) |
| What you get | Unless the deceased prohibited it or a court says otherwise, a catalogue of communications and the user's other digital assets. The content of messages needs the user's consent or a court order (§7). The custodian chooses whether to give full access, partial access or a copy, and may charge a reasonable fee | §§6–8 |
| How long it takes | The custodian must comply within 60 days of receiving the required information (the number is in brackets, so states may change it). If it does not, you can apply to the court | §16(a) |
| The deceased's own choice comes first | A direction the user gave in the custodian's online tool generally overrides the will; without one, the will or trust applies; without either, the terms of service | §4 (see US guide) |
Checked on · compared with the Uniform Law Commission's final act text (2015); state enactments may differ
In practice exchanges run their own deceased-customer processes, which ask for much the same documents (table above). Ask each one for a statement of holdings at the date of death as well as the transfer.
What tax basis do heirs get? (IRC §1014) Intermediate
Evidence: Grade 2 Primary documentation The statute and the IRS's own answers. How they apply to a given estate is a question for a tax adviser.
- The rule. Property acquired from someone who has died generally takes a basis equal to its fair market value on the date of death, or on the alternate valuation date if the executor elects it under §2032 (26 U.S.C. §1014). The IRS says this applies whether or not the estate files Form 706 (IRS: gifts and inheritances FAQ). Digital assets are property for US tax purposes (IRS: digital assets).
- Holding period. If an heir sells within a year of the death, the coins are still treated as held for more than one year, so any gain is long-term (26 U.S.C. §1223, §1223(9)).
- Consistency. Where the estate has to file Form 706, it must also file Form 8971 telling the IRS and each beneficiary the estate-tax value, and the heir's basis cannot be higher than that value (Instructions for Form 706; §1014(f)).
- Gifts are different. Coins given during the owner's life keep the giver's original basis (US guide: step-up).
Checked on · compared with 26 U.S.C. 1014 and 1223 on Cornell LII and the IRS gifts and inheritances FAQ (page updated 29 September 2026)
Does the estate need to file Form 706? Intermediate
Evidence: Grade 2 Primary documentation Figures from the IRS's own estate tax pages and the Form 706 instructions.
A federal estate tax return is required when the gross estate, plus adjusted taxable gifts and any specific exemption, is more than the filing threshold for the year of death. Crypto counts at its date-of-death value (IRS: estate tax; 26 U.S.C. §6018).
| Year of death | File Form 706 if the amount is more than |
|---|---|
| 2024 | $13,610,000 |
| 2025 | $13,990,000 |
| 2026 | $15,000,000 (raised by Public Law 119-21, signed 4 July 2025, and indexed for inflation after 2026) |
Checked on · IRS Estate tax page (updated 23 October 2026), What's new page (updated 23 July 2026) and Instructions for Form 706
- Smaller estates may still file. An executor can file Form 706 to pass the deceased's unused exclusion to a surviving spouse (portability), whatever the size of the estate (Instructions for Form 706; US guide: portability).
- Deadline. Nine months after death, with an automatic six-month extension to file (not to pay) using Form 4768 (Forms 706 and 1041).
- State taxes can start far lower than the federal figure: see state estate and inheritance taxes.
How do you answer the digital asset question on Form 1040? Intermediate
Evidence: Grade 2 Primary documentation The IRS's digital assets page and the 2025 Form 1040 instructions. Where they are silent, we say so.
Form 1040 asks every filer whether, at any time during the year, they received a digital asset as a reward, award or payment, or sold, exchanged or otherwise disposed of one. Versions of the question also appear on Forms 1041 (estates and trusts) and 709 (gifts) (IRS: digital assets).
| Situation | What the IRS sources say |
|---|---|
| The deceased's final Form 1040 | The personal representative files it for the year of death (IRS Publication 559). It covers the deceased's own activity up to the date of death, including any sales at their original basis (Forms 706 and 1041) |
| You inherited coins and only held them | The IRS says to answer "No" if you only owned or held digital assets, or moved them between wallets or accounts you own or control, unless you paid a fee in digital assets. Its list of "Yes" cases does not mention inheritance, and the 1040 instructions say not to report an inheritance of digital assets as income on Schedule 1, line 8v (IRS: digital assets; 2025 Form 1040 instructions). The IRS does not say in so many words how to answer for the year you inherit, so ask a tax adviser |
| You sold, swapped or spent inherited coins | Answer "Yes" and report the sale on Form 8949 and Schedule D, using the date-of-death value as your basis (IRS: gifts and inheritances FAQ). Report it whether or not you received a Form 1099-DA (2025 Form 1040 instructions) |
| The estate sold coins or earned staking rewards | That goes on the estate's Form 1041, which has its own digital asset question. An estate files if its gross income is $600 or more (US guide: income tax) |
Checked on · IRS digital assets page (updated 2 September 2026), 2025 Form 1040 instructions and Publication 559
What do US lawyers and security experts each advise? Intermediate
This mirrors the UK table. Legal articles are written so that a fiduciary can find and lawfully reach the assets; security guidance is written so that nobody can take them early or be tricked into handing them over. Legal articles are the authors' views, with their dates shown, not official guidance. Grade 4 Community report for the security column, which is practitioner advice rather than a tested result.
| Topic | What lawyers typically advise | What security experts typically advise | How to reconcile |
|---|---|---|---|
| Keys in the will | Leave keys out of the will, because it becomes a public court record once it is probated (Rivkin Radler, March 2023) | Never write a seed anywhere other people can read it; keep backups offline (Casa) | Both sides agree. The will names the fiduciary and grants digital-asset powers; the access details live elsewhere |
| Authority to access | Give the fiduciary express authority in the will or trust, referring to RUFADAA, because custodians may refuse without it (ABA, Brandi and Hoffman, December 2025; ABA, Dangremond, February 2025) | Legal authority does not move coins in self-custody; only the backup and instructions do (Unchained) | You need both: written authority for custodians, and a findable backup for self-custody. See RUFADAA requests |
| Passwords and access details | The representative should have passwords and up-to-date login details, kept in a plan separate from the will and reviewed yearly (ABA, Dangremond, February 2025) | A list of logins is not a seed backup. Store the phrase on paper or metal, not in a document or photo (Lopp) | Keep an inventory and letter of instruction that says where the backup is, not what it says (executor template) |
| A device found after death | Do not connect, update, reset or guess PINs; have it evaluated by someone familiar with digital forensics (ABA, Brandi and Hoffman, December 2025) | Restore from the written backup on a new device you set up yourself, entering the words only on that device (set-up checks) | Agree on "do not touch". If the backup is found, a careful restore on a new device usually makes forensics unnecessary |
| Outside "recovery" help | Where the phrase is missing, consult professionals with cryptographic recovery expertise early (ABA, Brandi and Hoffman, December 2025) | Fake recovery firms target people who have lost crypto; the FBI warns about them (FBI IC3, 2023) | Use only someone you found and checked yourself, ideally through your lawyer; stay present; never pay upfront to a firm that contacted you; never hand over the words |
| Speed | Probate takes time; preliminary letters can help but are not instant (Rivkin Radler, March 2023) | Rushing is when mistakes and scams happen | Secure and record first; sell or distribute after advice (before moving anything) |
Checked on · legal cells compared with the ABA and Rivkin Radler articles (ABA pages block our checker and were read in full by another fetcher); security cells with the pages linked
Executor's checklist Beginner
- Register the death and use Tell Us Once (UK), or get certified death certificates (US).
- Gather papers and devices in one private place; keep a log of what was found.
- Do not guess PINs, wipe devices, post about the inheritance or type words into anything.
- Go through statements, emails, apps and papers using HMRC's checklist.
- Find out who has legal authority and apply for probate, confirmation or letters as needed.
- Contact exchanges through their official bereavement pages; ask for date-of-death statements.
- Value every holding at the date of death and keep the evidence.
- Restore self-custody wallets on a new device, then move to an estate-controlled wallet after a test.
- Report to the tax authority (UK: IHT400 or the excepted-estate figures; US: the final Form 1040, Form 1041 and, above the threshold or for portability, Form 706; see US executors and heirs).
- Take advice before selling or distributing, and record every transaction.
- Ignore anyone who contacts you offering to "recover" crypto for a fee.
Printable versions: the explain-to-your-executor template and the backup checklist.
When should you bring in a professional? Beginner
- A solicitor (UK) or probate attorney (US) for probate or confirmation, disputes, a missing will or anything cross-border: Law Society (England and Wales), Law Society of Scotland, Law Society of Northern Ireland.
- A tax adviser (in the US a CPA, enrolled agent or tax attorney) for valuation, IHT or estate tax, and the capital gains position when assets are sold.
- Technical help only from people you choose and can check, working with you present. No one should need to take the words away.
Planning your own estate instead? Start at estate planning and see what lawyers and security experts each advise in the UK and the US.
Primary sources for this page
- HMRC CRYPTO25000: cryptoassets and Inheritance Taxsource type: Government/regulator
- HMRC Trusts and Estates Newsletter, February 2026 (cryptoassets on IHT returns)source type: Government/regulator
- GOV.UK: what to do after someone diessource type: Government/regulator · Tell Us Oncesource type: Government/regulator · applying for probatesource type: Government/regulator · mygov.scot: confirmationsource type: Government/regulator
- FCA: recovery room scamssource type: Government/regulator · FBI IC3 PSA, 11 August 2023source type: Government/regulator · FBI IC3 PSA, 24 June 2024source type: Government/regulator · Report Fraud: cryptocurrencysource type: Government/regulator
- Coinbasesource type: Vendor · Krakensource type: Vendor · Geminisource type: Vendor · Revolutsource type: Vendor bereavement pages
- Ledger: PIN attempts and resetsource type: Vendor · Wallets Recoverysource type: Community · IRS: digital assetssource type: Government/regulator
- US (added 25 October 2026): IRS: what's new, estate and gift taxsource type: Government/regulator · IRS: estate taxsource type: Government/regulator · Instructions for Form 706source type: Government/regulator · IRS: gifts and inheritances FAQsource type: Government/regulator · 2025 Form 1040 instructionssource type: Government/regulator · IRS Publication 559source type: Government/regulator
- 26 U.S.C. §1014source type: Non-profit · §1223source type: Non-profit · §6018source type: Non-profit · Uniform Law Commission: RUFADAAsource type: Non-profit · RUFADAA final act with commentssource type: Non-profit
- ABA Probate & Property: digital assets and estate planning (December 2025)source type: Legal/professional · ABA eReport: protecting digital assets in an estate plan (February 2025)source type: Legal/professional · Rivkin Radler: digital assets in your estate plan (March 2023)source type: Legal/professional
- Farrer & Co: tips for executors of an estate containing cryptoassets (July 2021)source type: Legal/professional · Law Society of Scotland Journal: crypto in executries (September 2025)source type: Legal/professional
Last reviewed: · Educational information only — verify current details with official sources.