🔹Over £1.5 billion in Bitcoin is lost forever due to inaccessible wallets. Could your crypto be next?
If you hold Cryptocurrency, you’ve probably thought about security — cold storage, private keys, maybe even multi-sig wallets. But have you thought about what happens to your crypto assets if something happens to you?
Unlike traditional bank accounts, there’s no ‘deceased investors’ department for crypto. If no one knows what you own or how to access it, those assets may be lost forever. Think of it as “Burying your physical wallet in the middle of a desert. Somewhere in the world” – if you lose your private keys, you lose your Cryptocurrency.
Of course, you could leave your cryptocurrency on a centralised exchange like Coinbase or Binance, where people (rather than code) can assist. But as a cautionary tale, investors did just that with FTX and Celsius—two custodial crypto platforms that collapsed, leaving users with nothing.
🔹 Why Most Crypto Holders Risk Losing Their Assets After Death
In their 2024 consumer research paper, the FCA estimates that around 12% of the UK population, hold crypto assets – that’s 7 million UK adults.
Additionally, a recent study by AnalyticInsight found that 89% of crypto holders worry about what would happen to their assets if they died suddenly—yet most have no actionable plan to protect them. Crypto is decentralised, meaning there’s no central authority to turn to if access is lost. If your loved ones don’t know what you hold—or how to access it— what could’ve been been a first home deposit, a child’s university fund, or a legacy investment is at risk of disappearing forever, ending up “Buried in the desert”.
🔹 5 Essential Steps to Protect Your Crypto from Being Lost Forever
1️⃣ Keep a Clear Record of Your Crypto Holdings
Start by making a detailed inventory of your crypto assets, including:
- The types of assets you hold (Bitcoin, Ether, NFTs, DeFi tokens, etc.).
- Where they’re stored (hardware wallet, exchange, self-custody).
- Any additional security measures (2FA, multisig wallets).
👉 Why it matters: If no one knows what assets you hold, they could be lost forever. Estate planners can only work with the information available to them.
2️⃣ Store Private Keys Safely (Without Putting Them in Your Will)
Never include seed phrases, private keys, or exchange passwords directly in your will—wills become public documents during probate. Instead, consider:
- Using a secure password manager to store access details.
- Writing down key information and storing it in a fireproof safe.
- Using a trusted executor or multi-signature setup to ensure assets can be retrieved if needed.
👉 Pro Tip: If you’re using a hardware wallet like Ledger or Trezor, set up a recovery plan for your family or executor.
3️⃣ Appoint a Trusted Executor or Professional with Crypto Knowledge
Your executor should:
- Understand how crypto wallets and blockchain transactions work.
- Know how to retrieve and transfer digital assets safely.
- Follow a tax efficient Estate plan.
If your usual estate planner isn’t familiar with crypto, work with one who specialises in digital asset estate planning (I can refer you to one).
4️⃣ Provide Clear Instructions for Your Heirs
Even if your executor has access, do they know what to do with the assets?
- Write step-by-step instructions for accessing, selling, or transferring assets.
- Explain security risks to prevent scams.
- If holding NFTs or DeFi tokens, clarify any staking rewards, royalties, or smart contract conditions.
👉 Real-life example: Many beneficiaries have lost access to valuable crypto because they didn’t know how to navigate exchanges, wallet recovery, or blockchain transactions.
5️⃣ Regularly Review & Update Your Plan
Crypto moves fast—so should your estate plan. Every 6-12 months:
- Update your asset list and storage methods.
- Check if any new regulations impact crypto inheritance.
- Ensure your executor or family is still informed.
These are just a few tips, but nothing replaces a proper discussion and plan.
🔹 How to Protect Your Crypto for Future Generations
Whether you’re holding Bitcoin for the long haul, trading meme coins, or collecting NFTs, planning ahead ensures your assets don’t disappear when you do.
Cryptocurrency estate planning isn’t just for high-net-worth investors—it’s essential for anyone holding digital assets. Taking steps now ensures your investments remain accessible for your heirs. If you’re unsure where to start, I can connect you with a specialist estate planner who understands digital assets.
Have you planned for your crypto’s future? If this is something you’ve thought about—or haven’t yet—let’s start the conversation. Drop your thoughts in the comments.