Planning for crypto inheritance is not like leaving cash or property. Under US probate law, cryptocurrency is a digital asset, and the law does not assume a deceased person wanted private materials passed on unless they said so. That makes it essential to set up explicit arrangements while alive.
The ease of transfer depends on the type of wallet. With a custodial wallet, a third party like a bank or crypto marketplace holds the assets, and some large financial institutions allow beneficiary designations that cover crypto accounts. But not all custodians offer beneficiary forms, and crypto held through banks is not FDIC-insured.
Noncustodial wallets, which appeal to crypto enthusiasts who want direct control, are harder to pass on. There is no company to appeal to if a key is lost, and no government or credit bureau knows the account exists. Heirs must be told about it and given secure instructions, or the assets may be permanently inaccessible.
The article advises building a safe system for handing over passwords and keys, and warns that testing it requires trust. The core takeaway: without advance planning, crypto can effectively die with its owner.