If you have $10 in a bitcoin or any cryptocurrency wallet or $1 million stashed offline in cold storage, you need a plan to help your next of kin gain access when you die, especially if heirs are not familiar with the brave new world of digital money. But what happens to your Bitcoin, Ethereum, or other digital assets when you die? Without proper planning, your crypto could disappear forever. As a Deming probate lawyer, I often see families struggle with accessing digital property that wasn’t included in an estate plan. This article explains what you need to know to protect your digital legacy.
Crypto and Probate: What You Need to Know
Just like your home or your bank accounts, your cryptocurrency becomes part of your estate when you pass away. And yes, it goes through probate.
Here’s the catch: probate is only helpful if your heirs can access your crypto. That means they need your private keys, recovery phrases, or access credentials. Without them, no court order or probate attorney can unlock your digital wallet.
An Example of What Could Happen to Your Cryptocurrency without a Plan
A cryptocurrency investor who died in an accident at age 33 had allegedly accumulated about $60 million in Bitcoin, Ethereum, RP, and Cardano. We’ll still never know if this was true because his crypto millions died with him. His estate plan did everything but address his digital assets. No one knew how to access his cryptocurrency; he left no information about his digital passkeys and lost whatever he may have owned.
It is estimated that early New Mexico cryptocurrency buyers have already lost millions or billions because they died without a succession plan or lost their wallet keys and could not access their accounts.
What Makes Crypto Different from Other Assets?
- Decentralized Nature: There’s no central bank or hotline to call if something goes wrong.
- Private Keys = Ownership: Without your private key, no one can access your funds—even your family.
- Digital Wallets Are Secure, But Inaccessible: Without the recovery seed, your wallet is just a locked vault.
If you own cryptocurrency, you need to incorporate it into your estate plan with the help of a Deming probate or estate planning lawyer. Without it, your crypto could be lost forever.
Steps to Protect Your Crypto Assets
A traditional will is a good start, but it’s not enough. Here’s what you should do:
1. Tell Someone You Own Crypto
Let your family—or at least your attorney—know you have digital assets. It’s impossible to claim what no one knows exists.
2. Document Access Information
Write down your wallet information, including:
- Public wallet address
- Private keys
- Recovery phrases
- Login credentials for exchanges or custodial wallets
Describe each wallet in detail: is it an exchange, mobile wallet, or hardware wallet? Include all of the security keys, seed phrases, usernames, password information with instructions for each, including cell phone codes for the mobile wallets on your phone. Do not store anything on the internet. Store this information securely—ideally, in a way that only a trusted person or your attorney can access when needed.
3. Create a Letter of Instruction
A separate letter (not included in your will) can explain how to access your wallets. This avoids exposing your private keys in the public probate process. You will likely need to educate family members about how crypto and other digital assets work. They may not be comfortable with this new kind of asset.
4. Consider a Trust for Your Crypto
A trust allows you to appoint a trustee who understands how to manage and transfer digital assets. This is often a better option than relying on a traditional executor.
How a Deming Probate Lawyer Can Help
When cryptocurrency is involved, New Mexico probate becomes even more complex. Working with a Deming probate lawyer ensures your digital assets are included in your estate plan properly—and that your loved ones won’t be left scrambling for access.
Secure Your Crypto Today with the Help of E-Law
If you own crypto, don’t delay. Your digital investments are valuable—and vulnerable. At E-Law, we help Deming clients protect their digital property and ensure a smooth probate process, even with unconventional assets like cryptocurrency. Request a discovery call and let’s create a plan to protect your traditional and digital assets.
References: Investopedia (March 23, 2025) “Estate Planning for Crypto: What Happens When You Die” and Financial Advisor (Jan. 6, 2025) “Estate Planning With Cryptocurrencies”
