Why should I never put a seed phrase in my will?

Wills become public documents during probate, so anyone could read the seed phrase and drain the wallet. Instead, reference the crypto in the will as an asset class and keep the access details in a separate, secure memorandum or a key-recovery scheme.

What happens to crypto if I die without a plan?

Without keys or instructions, the assets are usually lost forever — no central authority can recover them. Even with a will, heirs who do not know the crypto exists or cannot access the keys cannot inherit it. A documented access plan is essential.

How is crypto taxed on death in the UK?

In the UK crypto is treated as property for Inheritance Tax, charged at 40% above the nil-rate band. There is a capital-gains uplift to market value at the date of death, so beneficiaries inherit at that valuation. Record the date-of-death value for each asset.

What is a good key-recovery method for heirs?

Options include Shamir Secret Sharing (splitting the seed into shares held by different trusted parties), a multisig wallet requiring multiple keys, or a sealed seed-phrase escrow held by a solicitor. The aim is no single point of failure and no public exposure.

Does my executor need special instructions?

Yes. Most executors are not crypto-literate. Write plain-language steps for finding wallets, unstaking DeFi positions before liquidation, contacting exchanges with KYC details, and valuing assets — otherwise value can be lost during administration.

Crypto Estate & Inheritance Planning Checklist

This tool builds a personalised checklist for passing on cryptocurrency and digital assets. It tailors the access, legal, tax, and executor steps to the assets you hold, your jurisdiction, and whether you have a will, a trust, or no plan yet.

How it works

The generator combines three inputs:

Asset types — each type adds specific access and legal items. Hardware wallets need a documented seed-backup location; exchange accounts need beneficiary processes and KYC contacts; DeFi positions need unwinding instructions.
Jurisdiction — selects the right tax-on-death guidance (UK Inheritance Tax and CGT uplift, US estate tax and stepped-up basis, or EU member-state variation).
Estate structure — a missing will, a simple will, or a trust each change the legal steps.

The result is a deduplicated checklist grouped into Access, Legal, Tax, and Executor sections.

The cardinal rule

Never store seed phrases or private keys inside a will. Wills are made public during probate. Keep keys in a separate access memorandum, or split them with a recovery scheme such as Shamir Secret Sharing or a 2-of-3 multisig, so that no single document exposes the funds and no single lost key locks them away forever.

Tax at a glance

Jurisdiction	Treatment on death
UK	Property for IHT (40% above nil-rate band); CGT uplift to date-of-death value
US	Estate tax above the federal exemption; heirs get a stepped-up cost basis
EU	Varies by member state — some exempt long-held crypto, others tax the estate

Notes

This is general guidance, not legal or tax advice. Crypto estate planning sits at the intersection of security, succession law, and tax — work with a solicitor and a tax adviser in your jurisdiction, and review the plan annually and after any major change to your holdings. The checklist runs entirely in your browser.