Surveys from Gallup and Pew Research estimate 14% to 17% of American adults own cryptocurrency. As the number of crypto owners increases, so do the chances of crypto being lost upon death. A recent CNBC article, “Why your crypto wealth may never make it to the next generation,” notes that holdings are often tied up in court or lost forever when no estate planning is in place.

Many people either neglect to include cryptocurrency in their estate plans or fail to instruct executors on how to access it. If there’s no will or transfers haven’t been made before death, untangling an estate is difficult, but doable. In the case of cryptocurrency, a large share of inherited assets can be lost permanently and easily.

One way to mitigate this is to use crypto EFTs, which are becoming more popular with investors since their approval in 2024. These funds allow investors to access the crypto asset class without directly owning crypto, reducing the risk of investment loss.

Wills need to include provisions addressing digital assets, including cryptocurrency and the umbrella term "digital assets," which covers websites, social media, photos, airline miles, online accounts and more.

Part of the problem arises when people fail to update their wills for 10 years or more. Without specific language regarding digital assets, heirs may need to go to court to grant the executor authority to access crypto accounts.

While a standard will is appropriate for many people, estate planning attorneys today recommend using revocable living trusts as part of an estate plan. The living trust offers greater privacy and can reduce the time and expense of probate after death.

By transferring crypto assets to a revocable living trust, the trustee has immediate access to the assets upon the owner’s death. If crypto is included in a will, it could take six to eight months, or longer, for the will to be settled in probate. During this period, the executor won’t be able to manage the crypto, the heirs won’t have access and, given the volatility of this asset class, considerable value could be lost.

A revocable trust is paired with a pour-over will, so assets not included in the trust at the time of the person’s death are transferred to the trust.

Millions in crypto are lost due to failing to share critical access information, such as private keys, and appointing an executor who has no experience with cryptocurrency. Investors are often reluctant to disclose how much they own in bitcoin. However, they should ensure their executor knows what to do.

Private keys serve as digital passwords that grant access to cryptocurrency funds and prove ownership of blockchain assets. Someone needs to know how to access the assets, whether through written instructions kept in a home safe or with an attorney. There are also crypto inheritance services to help pass these assets on to family members. Don’t put any of this information into a will because the will becomes public in the probate process.

Finally, don’t neglect planning for crypto estate taxes. With the massive explosion in values, some people have enormous holdings, which could be subject to income taxes or estate taxes. Failing to plan could be detrimental to families. Knowing the impact crypto has on your estate is an important consideration. Creating a limited liability corporation, transferring the crypto into the LLC and giving an interest in the LLC to an irrevocable trust may be one solution.

Reference: CNBC (Dec. 6, 2025) “Why your crypto wealth may never make it to the next generation”