Crypto wealth: Millions in crypto wealth at risk of vanishing when holders die. Here's how to protect it

Millions in crypto wealth are at risk of vanishing upon the holder's death if proper estate planning is neglected, according to experts. While regulatory clarity around digital assets in wills and trusts has improved, the complexity of crypto custody poses a significant challenge for many advisors. Key issues involve determining how assets are stored—whether with custodians like Coinbase or in cold wallets—and ensuring beneficiaries or fiduciaries know how to access them. Experts advise naming someone with digital asset expertise to manage the transfer, as fiduciaries unfamiliar with crypto can cause probate delays or be unable to locate private keys. Furthermore, storing sensitive information digitally without hard copies can turn the process into a difficult "detective story." To mitigate probate delays, which can be problematic for volatile assets, establishing trusts that grant immediate access to trustees or using shell LLCs to hold crypto assets before transferring the LLC to the trust are recommended strategies. Crucially, owners must never put actual encryption information directly into a will, as wills become public records during probate.

(Source：CoinDesk)