In today’s digital world, estate planning isn’t just about real estate, bank accounts, and retirement funds—it’s also about your cryptocurrency. As more Ohioans invest in Bitcoin, Ethereum, and other digital assets, a serious question arises: what happens to your crypto when you die? Read on to learn more about estate planning for crypto owners in Ohio.
Unlike traditional financial accounts, crypto doesn’t come with a customer service line. If no one knows how to access your digital wallets or accounts, those assets could be lost forever. That’s why estate planning for crypto owners requires a different level of preparation.
Why Cryptocurrency Is Different
Cryptocurrency is decentralized and secured by private keys—long strings of letters and numbers that grant access to your holdings. There’s no reset button if you lose that key. And if your loved ones don’t have it? They’re out of luck.
It’s estimated that over 20% of all Bitcoin may already be lost, much of it belonging to people who passed away without leaving behind access instructions. Without a plan, your crypto could vanish just like that.
Traditional Wills Often Fall Short
Many people assume listing their crypto in a will is enough—but that’s rarely the case. A standard will might mention a wallet address or say “give my Bitcoin to my son,” but without:
•Access credentials (passwords, private keys, seed phrases)
•Instructions on how to retrieve it
•A custodian or executor who understands crypto
…your heirs could be left staring at a cold storage device they can’t access.
Practical Ways to Plan for Your Crypto
If you own cryptocurrency, here are some key steps to help ensure your digital assets don’t disappear forever:
1. Use a Hardware Wallet with a Backup Plan
Store your crypto in a secure hardware wallet (such as Ledger or Trezor) and record the 12- or 24-word seed phrase in a secure, offline location. Make sure someone knows where to find it when the time comes.
2. Write Crypto-Specific Instructions
Alongside your estate plan, create a document with:
•The type and location of your crypto holdings
•Clear access instructions
•Guidance for heirs who may not be tech-savvy
This document should not be part of the public will—consider a separate memorandum kept in a secure place.
3. Choose an Executor Who Understands Digital Assets
Appoint a fiduciary (executor or trustee) who is either familiar with cryptocurrency or willing to work with someone who is. They need to be prepared to access and manage your crypto legally and securely.
4. Consider Using a Multisig Wallet
A multisignature wallet adds a layer of security by requiring multiple people to authorize transactions. You could structure it so that your family and a legal professional must work together to access funds.
5. Store Your Seed Phrase Safely
Never store your seed phrase in the cloud. Better options include:
•A safe deposit box
•Fireproof, waterproof metal seed storage
•A professional custody service with inheritance options
How to Secure Your Crypto for the Next Generation
Here are practical steps to help you protect your cryptocurrency and pass it on safely:
✅ Crypto Estate Planning Checklist:
•List your digital assets (include crypto, exchanges, wallets, NFTs)
• Store your crypto in a hardware wallet (e.g., Ledger, Trezor)
•Back up your seed phrase securely (fireproof metal backup, safe deposit box, etc.)
•Create a separate document with step-by-step instructions for accessing your assets
• Name a digital-savvy executor or trustee in your estate documents
•Include digital asset clauses in your will, trust, and power of attorney
•Consider using a multisignature wallet to share access with a trusted person
•Review Ohio’s RUFADAA law with an estate planning attorney
• Avoid storing sensitive credentials in the cloud or public records
• Review and update your plan regularly
Ohio Law and Digital Inheritance
In Ohio, digital assets like cryptocurrency fall under the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). This law allows you to authorize someone to access your digital assets after death—but only if you’ve done so clearly and legally.
Your estate documents need to include specific language granting this authority. Without it, your executor may be limited—or completely blocked—from accessing your crypto.
The Bottom Line
If you’ve invested in Bitcoin or other crypto assets, don’t let them become part of the lost 20%. Secure your digital legacy with proper planning.
At Krugler Law, we help clients throughout Ohio create clear, legally sound plans to pass on their digital and traditional assets. Ready to start your plan or update an existing one? Contact us today to schedule a consultation.