© 2026 Della Group. All Rights Reserved.
Okay, look. Most guides on crypto for estate planning? They treat it like some fancy legal textbook. All stiff and boring, skipping the real nightmare: your kids staring at a dead guy's hardware wallet with no clue how to crack it open. Happened to this dude with $145 million in BTC - poof, gone forever 'cause passwords died with him. That's the crap you gotta fix first. Not some fluffy intro. Your family's not gonna Google "how to sweep a seed phrase" mid grief. So, we're starting raw: pick cryptos that won't turn into ghost money when you're gone.
It's not just about hodling BTC forever. Legacy planning means stuff that lasts, transfers easy, and doesn't tank your heirs with taxes or lost keys. In my experience, folks chase shiny altcoins, then bam - project rugs, wallet glitches, or regs wipe 'em out. Stick to battle tested ones. Why? They're liquid, have solid wallets, and courts kinda get 'em now. RUFADAA law in most states lets executors grab digital stuff if you spell it out right. Sound familiar? You've probably got a mix. Let's sort the keepers.
Skip NFTs unless they're blue chip like Bored Apes. Too niche, heirs gotta learn OpenSea. And altcoins? Risky as hell for legacy - one hack, gone.
Grab a spreadsheet. Now. List every wallet: Ledger, Trezor, MetaMask, Coinbase. Note amounts, like "2.5 BTC in Ledger Nano S, seed in safe." Include exchanges - username, 2FA codes (not passwords, dummy). Public addresses? Paste 'em. Why does this matter? Heirs find $10k in forgotten USDC, party's over. I usually do this quarterly 'cause crypto moves fast. Update values too - BTC at $100k? Note date bought for taxes.
Pro tip: Use a template. Columns for asset type, quantity, location, access notes. Oh, and value it at fair market - IRS treats crypto as property, so death date price sets their basis. No capital gains till they sell. Sweet deal, right?
| Type | Pros for Legacy | Cons | Best Pick |
|---|---|---|---|
| Custodial (Coinbase, Binance.US) | Easy - just login creds. Executors log in post RUFADAA. | They freeze on death notices. Hack risk. | Good starter for newbies. |
| Non Custodial (Ledger, Trezor) | You control keys. Multi sig options - needs 2/3 signatures from fam. | Seed phrase hell if lost. No reset button. | Go to for big stacks. |
| Multi Sig Wallets (Gnosis Safe on ETH) | Heirs + executor sign off. Auto triggers possible. | Setup takes 30 mins. Gas ~0.01 ETH. | Gold for families. |
Honestly, mix 'em. Park stables on custodial for quick cash, BTC/ETH on hardware. In my experience, multi sig saves arguments - "Mom said I get half!" Nope, contract enforces it.
Don't just scribble on napkin. Get a will naming kids as beneficiaries. Say: "My 3 ETH in MetaMask to Sarah. Seed details in Digital Safe, password in two spots I told her." Never put keys in the will - probate makes it public. Dumb move.
Trusts? Game changer. Revocable living trust skips probate - private, fast. Fund it by transferring wallets in. "Powers Family Trust holds my BTC." Irrevocable? Tax perks if you're loaded. Fees? Attorney $1k-5k, worth it. Avoid probate eating 5% fees and 6 months delay.
Love this. Services like Safe Haven or IronClad vaults - zero knowledge encrypted. Set trigger: no login 90 days? Sends seed to heirs. Cost? $10/month. Or DIY on ETH: smart contract pings oracle for your death cert, auto sends. Gas negligible. But test it - I fried one setup forgetting to renew domain.
Okay, these are clutch. Stuff like Trust & Will's Digital Safe or IronClad. Encrypt keys, recovery phrases. Features: access only on death proof, redundancy servers. Set it up: upload seed (24 words for BTC), PIN protect. Tell fam: "Safe password in safety deposit box and with lawyer."
Why over Google Drive? Hack proof, legal weight. Fees: $20/year. In my experience, heirs crack it in days vs months fumbling USBs. Pair with Legacy Letter - "Hey kids, here's how to swap ETH on Uniswap. Sell button's here. Don't panic."
IRS says crypto's property. You die, heirs get step up basis - no tax on your gains. They sell later? Tax from death price. But report it! Form 706 if estate over $13M. Gifting alive? Eats exemption, pays gains now.
Stables? Minimal gains. BTC mooned? Trust minimizes estate tax (40% over exemption). States vary - Cali probate sucks. Fix: irrevocable trust now. Consult crypto tax guy, $500/hour but saves millions. Potential issue: exchanges demand death certs, delays 3 months. Solution: custodial for 20%, self custody rest.
What's next? Educate heirs. "Bitcoin's not stocks, kid. Here's YouTube playlist." Or hire pro custodian like Fidelity Digital - they handle inheritance for 0.3% fee.
Costs total? Under $500 first year. Boom, legacy locked.
First: Not updating. BTC wallet from 2018? New firmware bricks it. Update plan.
Second: Family fights. "Dad promised me the SOL!" Multi sig or trust terms fix that.
Third: Hacks. Never email seeds. Use metal backups ($20 plates).
Case: Guy dies, exchange freezes $500k ETH 'cause no will. Kids sue, lose half to fees. Don't be that.
AI twist in 2026? Platforms auto update compliance. Smart contracts enforce "if dead, send 50% BTC to kids." Gas ~$5. Future proof, kinda cool.
Minors? Trust distributes at 25, say. Staking rewards? Note pool contracts. NFTs? List marketplaces, royalties wallet. "Sell Ape on Blur, gas 0.001 ETH."
I usually tell parents: Start small. Teach kids wallet basics now. "Hey, send me 0.001 BTC." Builds muscle memory. No more "What's a private?" tears.
If your fam sucks at tech, appoint a digital fiduciary. Firms charge 1% AUM. Or lawyer with crypto cert. Cost? $2k setup. Worth it for $1M+ portfolios. They handle IRS, transfers. You? Peace.
One more: Global? EU MiCA regs differ. US heirs from abroad? Extra tax forms. Lawyer up.
| Tool | Cost | Best For | Downside |
|---|---|---|---|
| Ledger Nano X | $149 | BTC/ETH hardware | Battery dies eventually |
| IronClad Vault | $10/mo | Triggers, multi heir | Subscription |
| Trust & Will | $199 will + safe | Full plan, easy | US only |
| Gnosis Safe | Gas fees | Smart multi sig | Learning curve |
© 2026 Della Group. All Rights Reserved.