How to put crypto in a trust and pass it on
If no one can find your keys, your crypto is gone forever. Here's how people plan for that without handing over their seed phrase today.
You can hold crypto in a living trust by putting exchange accounts in the trust's name, or by moving coins to a wallet the trust owns. The hard part is access: your trustee or heirs must be able to reach the coins later, without anyone being able to take them now. Write down what you own and where, keep the seed phrase secure and out of your will, and work with an estate-planning attorney who understands crypto.
Why crypto needs extra planning
With a bank account, your family can show a death certificate and the bank hands over the money. Crypto in a wallet you control has no bank behind it: if no one can find the seed phrase, the coins are lost for good. Crypto on an exchange is easier, but your family still needs to know the account exists.
Putting crypto in a trust
- Exchange accounts. Ask the exchange whether it offers trust accounts or lets you name a beneficiary. Rules differ by platform.
- Coins you hold yourself. Typically the trust is named as owner in a written assignment, and the trustee receives instructions for how to reach the wallet. Your attorney will word this.
- ETFs. Crypto ETFs held in a brokerage account are the simplest: brokerages handle trusts and beneficiaries routinely.
Giving access later, not now
Common approaches, often combined:
- A letter of instruction that lists your wallets, exchanges and coins and explains where the backups are, without containing the seed phrase itself.
- The seed phrase stored in a safe-deposit box, a home safe, or with your attorney, sealed.
- Multisignature wallets, where moving coins needs, say, 2 of 3 keys held by different people or places, so no single person can take them alone.
- Telling your trustee that crypto exists and who can help, even if they don't know how to use it.
What never to do
- Don't put a seed phrase or password in your will. Wills usually become public records during probate.
- Don't email or text a seed phrase, or store it in a notes app or cloud document.
- Don't hand your seed phrase to a "crypto inheritance" service you haven't vetted. Anyone with the phrase controls the coins.
How inherited crypto is taxed in the US
The IRS treats crypto as property. For property inherited at death, the beneficiary's cost basis is generally the fair market value on the date of death, so gains before death usually aren't taxed when the heir sells. Gifts during your lifetime work differently. Ask a tax professional about your situation.
A simple checklist
- List every wallet, exchange and coin you own, and update it once a year.
- Decide who should receive it and who will manage it.
- Store backups securely, in more than one place.
- Tell someone you trust that the instructions exist.
- Have an estate-planning attorney put it into your trust or will properly.
Frequently asked questions
Can a trust own cryptocurrency?
Yes. A trust can own crypto just like other property. The practical work is making sure the trustee can reach it.
What happens to crypto when someone dies?
Coins on an exchange can usually be claimed by the estate with the right paperwork. Coins in a self-custody wallet are recoverable only if someone can find the seed phrase or keys.
Should my seed phrase go in my will?
No. Wills often become public during probate. Keep the seed phrase secure and have your will or trust refer to where instructions are kept.
Where to next
Sources
- Digital assets (IRS)
- Publication 551: basis of assets (IRS)
- What to know about cryptocurrency and scams (FTC)
Written for beginners and checked against the sources listed. Last reviewed October 26, 2026. This page is educational and is not financial, tax or legal advice. How we write and check pages.