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Identify and Secure Cryptocurrency and Digital Assets
Legal Government & Financial Notifications
Determine whether the deceased owned any cryptocurrency or other blockchain-based digital assets. These assets may be held through online exchanges, self-custodied software wallets, hardware wallets, or written recovery phrases. Review email accounts, password managers, financial statements, and mobile devices for evidence of exchange accounts or wallet applications. Locate and secure any related hardware wallets, authentication devices, recovery phrases, or account credentials. Digital assets may be permanently inaccessible without proper access information. Do not attempt to transfer, liquidate, or distribute cryptocurrency until legal authority is established and you understand the platform's estate procedures. If assets are held on an exchange, contact the platform directly to initiate its estate handling process. Maintain detailed records of all findings and store sensitive information securely.
Frequently Asked Questions
Digital
How do I find out if the deceased owned cryptocurrency?
Search their email for account confirmation messages from exchanges like Coinbase, Kraken, Binance, or Gemini. Check their phone for crypto wallet apps (Coinbase Wallet, MetaMask, Trust Wallet). Look for hardware wallets—small USB-like devices from Ledger or Trezor—in safes, drawers, or with valuables. Review bank and credit card statements for purchases from crypto exchanges. Check their password manager and browser bookmarks for exchange logins.
What is the difference between exchange accounts and self-custody wallets?
Exchange accounts (Coinbase, Kraken, etc.) are like bank accounts—the company holds the crypto and has an estate claims process requiring a death certificate and Letters Testamentary. Self-custody wallets (hardware wallets, MetaMask) mean the deceased controlled the private keys directly. Without the seed phrase (typically 12 or 24 words), assets in self-custody wallets may be permanently inaccessible. There is no company to contact for recovery.
What is a seed phrase and why is it critical?
A seed phrase (also called a recovery phrase) is a set of 12 or 24 words that serves as the master key to a cryptocurrency wallet. It can restore access to the wallet on any compatible device. The deceased may have written it on paper, stored it in a safe, engraved it on metal, or saved it in a password manager. If you find a seed phrase, store it securely offline—anyone with these words can access and transfer the funds. Never enter it into a website or share it with anyone claiming to offer help.
Process
How do I claim cryptocurrency from an exchange after someone dies?
Each exchange has its own estate process. Coinbase requires a death certificate, proof of executor authority, government ID, and a notarized letter. Kraken and Gemini have similar requirements. Processing typically takes 30-90 days. Contact the exchange's support team and ask specifically for their "deceased account holder" or "estate claims" process. Do not attempt to log in using the deceased's credentials, as this may trigger security lockouts.
Costs
Are there tax implications for inherited cryptocurrency?
Yes. Inherited crypto receives a stepped-up cost basis to the fair market value on the date of death, meaning you only owe capital gains tax on appreciation after that date. However, you must document the value on the date of death for each asset. If the deceased had unreported crypto transactions, the estate may owe taxes on those. Crypto tax reporting is complex—consult a CPA experienced with digital assets. The IRS treats cryptocurrency as property, not currency.
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