Can you inherit bitcoin? What to do if it happens to you

This article is for the person receiving bitcoin, not the person leaving it. If you're here because someone you love has died, I'm sorry. Nothing here needs to happen today.

I haven't inherited bitcoin. My husband holds ours in self-custody, and I'm the non-technical one. For years he "explained it" and I nodded along, and I couldn't have done anything with it. So we practiced: I followed his instructions alone, as if he weren't there. What follows is what that taught me about the heir's side of bitcoin inheritance, and of digital inheritance in general. Our full guide to bitcoin inheritance covers the rest.

Can you inherit bitcoin? Yes

Bitcoin can be inherited like other property. A will or a trust, such as a living trust, can name who receives it, and the executor or trustee handles the estate. Your beneficiaries are named there, and the estate plan says how digital assets are divided. If there's no will, local intestacy laws decide who inherits. For what applies to you, ask a professional where you live.

Inheriting bitcoin has two sides. One is legal: who it belongs to now. The other is practical: whether anyone can actually reach it. Bitcoin estate planning is supposed to cover both, but it often covers only the first. Good crypto inheritance planning leaves the heirs a guide as well as a will.

Finding a device, or seed phrases written on paper, doesn't make the bitcoin yours. The person handling the estate decides what happens next, often through probate. Let them know what you've found, and keep a private list of the items, without copying any secret words into it.

For what happens to the bitcoin itself when someone dies, see what happens to bitcoin when you die.

Take your time: nothing expires

Here's the most reassuring thing I learned: bitcoin doesn't expire. It stays recorded on its network until someone moves it. There's no countdown on the coins themselves. Digital assets like bitcoin can wait while the estate is sorted out.

The estate may have its own deadlines, and an exchange has its own account rules. The price will move. But the bitcoin isn't going anywhere, and rushing is what causes mistakes.

So start by keeping things safe:

• Keep any devices and papers together, somewhere private.
• Don't reset a device, and don't try guessing a PIN. Many hardware wallets erase themselves after too many wrong tries.
• Don't throw away an old computer or phone until you know what's on it.
• If you find a list of words, don't photograph it, type it anywhere, or share it.

When I practiced, slowing down was what let me stop at the steps I didn't understand instead of guessing. You're allowed to pause.

Find out how it was held

The first practical question is how the bitcoin was held. That decides who you deal with.

On a cryptocurrency exchange. A company holds the bitcoin and the private keys. It has its own process for a customer who has died, and the person handling the estate usually contacts it through its official website. Expect requests for a death certificate and documents showing who has authority to act. Some accounts have a beneficiary designation. The exchange will say whether one exists, how beneficiary designations work on its accounts, and what the beneficiaries need to provide.

In self-custody. There's no company to call. The bitcoin is reached through a digital wallet: often a hardware wallet, a small device from makers such as Coldcard, Ledger, or Trezor, plus a seed phrase backup and any other pieces the setup uses. Each private key behind that bitcoin wallet can be rebuilt from the seed phrase. Seed phrases are the master key: whoever holds a complete one can move the bitcoin.

Either way, look for written instructions first. Other digital assets and crypto assets may have their own instructions too. An instruction letter, or letter of instruction, is the most useful thing you could find. Ours contains no secrets. It says where things are and how to check each step. That's the kind of document to look for before trying to open anything.

Trust no one who contacts you first

When people know someone has died, offers of help can arrive quickly. Treat anyone who contacts you first as unverified, even if they know family details.

Real help almost never reaches out first. If someone says they're from a cryptocurrency exchange or a law firm, end the conversation and contact that organization yourself, using details you find on your own.

No legitimate person or company needs a seed phrase or private keys sent by message, read over the phone, or typed into a website. Anyone who has them can move the cryptocurrency, and nobody can reverse it.

Anyone offering to recover bitcoin for a fee deserves extra caution. Before sharing anything, let the person handling the estate decide whether outside help is needed, and who.

If you ask a question online, keep screenshots, words, and codes out of it. You can ask what a term means without sharing anything you found.

A small test before anything large

Once the person handling the estate says it's time to move anything, start small.

My own rehearsal ended with me sending a small test payment myself and seeing it arrive. My husband sat behind me and wasn't allowed to help. I got stuck near the start, mostly on words he didn't notice were jargon. The written steps, and a check at each stage, were what got me through.

Before a test, check:

• The receiving wallet is for bitcoin, not Ethereum or another kind of crypto asset.
• The full receiving address on the hardware wallet's own screen matches, character by character.
• You understand the amount and the fee.
• The receiving digital wallet, or bitcoin wallet, has its own backup.

Send an amount small enough that a mistake wouldn't matter much. Confirm it arrived. Then check the address again before every payment after it.

When to get help

Some questions are for a professional, and that's normal.

Who has authority to act, how the estate plan and any bitcoin estate planning documents apply, and anything involving probate: ask an estate planning attorney or another professional where you live. A trustee follows the trust's terms, and an executor follows the will.

Tax questions, including what happens if you sell: ask a professional where you live.

A letter of instruction, if one exists, isn't a legal document. It's a practical guide, and it can sit alongside whatever the professionals decide.

Technical steps: if written instructions exist, follow them one step at a time, and stop at any step that isn't clear. If you bring in outside help, choose them yourself and agree first on what they'll touch.

Crypto inheritance, like any digital legacy, works best when someone practiced it while the owner was still here to answer questions. If you expect to inherit bitcoin one day, ask to try the steps now. We redo ours once a year. That's a digital legacy you can actually use.

Frequently asked questions

How long do I have to claim inherited bitcoin?

In bitcoin inheritance, the bitcoin itself has no deadline. The estate and any exchange account may have their own rules and deadlines, so ask a professional where you live.

What if I can't find the seed phrase?

Look for written instructions, a working device, or other backups first. A missing seed phrase doesn't always mean everything is lost. A working device, with its PIN, may still reach the private key. If the bitcoin was on an exchange, the company's process applies instead.

Do I have to pay tax on inherited bitcoin?

It depends on the rules where you live and on what you do with it. Ask a professional where you live before you sell anything.

Should I move inherited bitcoin to my own wallet?

That's a decision for later. First let the legal side settle, and make sure you understand what you have and how your own wallet would be protected. When the time comes, send a small test amount first.