Estate Planning

Estate Planning for Digital Assets Like Crypto & NFTs

Posted Rank Zenit

estate planning and crypto

Estate Planning for Digital Assets Like Crypto & NFTs

Based on the global population (8 billion people), only about 5-6% of them own cryptocurrency. So, imagine a scenario where you spend years building your crypto portfolio and your online business, but no one in your family knows how to access it. All your hard work and digital wealth could vanish, just because you don’t have a clear plan.

If you own any kind of digital assets, estate planning isn’t an option, it’s a necessity. However, the digital world operates differently, with its own set of rules, risks and responsibilities. 

Here, you’ll learn how to protect what you’ve built and make sure it lands in the hands of the right person by working with an estate planning lawyer when the time comes. Read on:

What Exactly Are Digital Assets?

Digital assets go way beyond just crypto or NFTs, they include:

  • Cryptocurrencies like Bitcoin, Ethereum, or stablecoins.
  • NFTs (non-fungible tokens), which can be digital art, music, or collectibles.
  • Online businesses, such as e-commerce stores, affiliate blogs, monetized YouTube channels, or even popular social media accounts.
  • Domain names, digital wallets, and digital memberships or licenses.

These assets often live on the internet protected by passwords, logins, private keys, and two-factor authentication. And because they’re virtual, they’re invisible to the legal system unless you intentionally include them in your estate plan.

Why Digital Assets Are Easy to Lose

The problem is  digital assets don’t come with a paper trail. There’s no bank manager or physical property title and most times, no company you can call to unlock them after someone dies.

If you don’t leave behind:

  • Passwords
  • Seed phrases
  • Private keys
  • Platform access instructions

Then your assets may be permanently lost.

Also, most platforms don’t have clear death or legacy policies. Some crypto exchanges, you don’t have any recovery options once your access is lost. And because estate laws haven’t fully caught up with tech, it’s easy to lose digital assets. 

How to Include Digital Assets in Your Estate Plan

Now that we’ve identified the problem, let’s look into solutions. Here’s how you can protect your digital assets and prevent them from disappearing:

  • Create an Inventory

Make a list of everything you own digitally. Such as:

Wallet addresses

  • Exchanges (e.g., Binance, Coinbase)
  • Password-protected accounts
  • NFT marketplaces (OpenSea, Rarible, etc.)
  • Online businesses and platforms (Shopify, Amazon Seller, YouTube)

Include the platform, type of asset, and value if possible.

  • Secure Your Access Info

This part is important. Your beneficiaries can’t access your digital assets without:

  • Passwords
  • Two-factor codes
  • Private keys
  • Seed phrases

These are some options to safely store this information:

  • Use a password manager with emergency access options.
  • Create a secure, encrypted document that outlines all access details.
  • Use a dead man’s switch or digital legacy tool (like Google’s Inactive Account Manager or Apple’s Legacy Contact).

You should never put this sensitive information directly in your will because they become public documents.

  • Appoint a Digital Executor

Ensure that this is someone you trust to manage your digital stuff after you pass. Choose someone:

  • Tech-savvy enough to handle the task.
  • Responsible and trustworthy.

Not all states legally recognize “digital executors,” but you can still include this role in your estate planning documents.

  • Add Instructions to Your Will or Trust

Since you can’t include private keys directly in the will, you can reference where your beneficiary can access the info (e.g., a safe deposit box or encrypted file).

Better yet, place digital assets (especially crypto or online businesses) into a revocable living trust. This avoids probate and keeps access private and streamlined.

  • Work with a Lawyer Who Understands Digital Assets

Traditional estate planning lawyers may not fully understand how crypto or NFTs work. You want to work with someone who is already familiar with:

  • Blockchain technology
  • Secure asset transfer
  • Digital tax laws

They can help you work around the legal complexities, especially across multiple countries or jurisdictions.

Special Considerations for Crypto and NFTs

If you lose the seed phrase or private key of your crypto wallet, your asset is gone forever, because there’s no “forgot password” button on the blockchain.

Try these useful tips to keep your passwords safe:

  • Use multi-signature wallets that require more than one person’s approval to access funds.
  • Consider custodial wallets or trust-friendly platforms that offer inheritance options.
  • Understand tax implications: crypto and NFTs can attract capital gains, inheritance tax, or even income tax depending on how they’re transferred.

And with NFTs, owning the token doesn’t always mean you own the rights to the artwork or music. Make sure your plan includes license transfer instructions, if it’s applicable. 

How About Online Businesses?

If you’ve managed to successfully build an online source of income, treat it like a physical business. Whether you have an affiliate site or a dropshipping store, your digital brand has value.

To protect it:

  • Document all logins, monetization accounts, and renewal schedules (like domain registration).
  • Include instructions for continuing or selling the business.
  • Transfer ownership into a trust for smooth transition.

Conclusion

Digital assets are becoming just as important  and valuable  as traditional ones. But they’re also more complex to pass on. If you don’t plan ahead, all those NFTs, crypto coins, and online hustle could disappear when you pass on.

Take a few steps now: list your assets, secure your access info, appoint a digital executor, and get a  trusted lawyer who understands the digital world. 

FAQ: Quick Questions About Digital Estate Planning

  • Can I just give my family my crypto passwords in a notebook?

You could, but it’s risky. If someone stumbles on that notebook, your assets could be stolen. Use secure digital storage and make it can only be accessed by only those you wish.

  • Do I need a separate will just for digital assets?

Not necessarily. You just need to update your existing estate plan to include a digital asset clause and inventory.

  1. What happens if I die without sharing access to my NFTs?

Your NFTs may be lost forever because  your family won’t be able to recover them without wallet access. It’s like throwing a locked safe into the ocean without giving anyone the key.

  • Is a digital executor a legal role?

It depends on your jurisdiction. But even if it’s not legally recognized, you can still name someone in your estate plan and give them power through a trust or instruction letter.