How to handle crypto and NFT assets in a digital will?

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Learn how to secure your crypto and NFT assets in a digital will with smart tools, legal tips, and step-by-step planning for your digital legacy.

Understand Why Crypto and NFTs Need Special Planning

Crypto assets are decentralized, anonymous, and password-protected. This makes them powerful but also risky. If no one else has access to your keys, they’re gone for good.

NFTs (Non-Fungible Tokens) often hold artistic, cultural, or gaming value. Like crypto, they’re stored in wallets and require access keys. Traditional wills aren’t designed to handle these complexities.

Creating a digital will ensures these assets are accounted for, accessible, and protected long after you're gone.

Inventory All Your Crypto and NFT Holdings

Begin by listing every crypto wallet and NFT you own. This includes custodial and non-custodial wallets, exchange accounts, and cold storage devices like Ledger or Trezor.

Note down wallet names, public addresses, associated networks (e.g., Ethereum, Solana), and the types of assets stored.

Use a spreadsheet or a secure platform like Cipherwill to track this inventory with encryption and structure.

Store Private Keys Securely, but Accessibly

Your private keys and seed phrases must never be exposed publicly. But your beneficiaries will need them after your death.

Never store them in plain text or in a physical notebook without protection. Use encrypted digital vaults or hardware wallets.

Cipherwill, for instance, allows you to encrypt private key information in time-locked capsules for beneficiary access only upon your death.

Appoint the Right Digital Executor

A digital executor is someone you trust to carry out your crypto asset instructions. They should understand basic blockchain concepts.

Choose someone tech-savvy or willing to learn. They must understand how to use wallets, exchanges, and decrypt instructions securely.

Clearly document their duties and provide resources to help them execute your wishes accurately and legally.

5. Clarify Who Gets What – With Precise Instructions

Be extremely clear about who inherits each wallet or NFT. Specify not just the asset but also how to access it.

Example:

3 ETH in MetaMask wallet (ending in 0x1A23) goes to my sister Sarah.

Bored Ape #4229 in OpenSea account to my son, Mike.

Avoid ambiguity to prevent loss, delay, or disputes.

Use a Secure Digital Will Platform

Traditional will-writing tools can’t handle crypto complexities. Use a specialized digital will platform.

Platforms like Cipherwill allow you to:

Encrypt sensitive information

Set up time-based release to heirs

Ensure two-step authentication for data access

These platforms adapt to crypto’s decentralized structure and provide legal frameworks too.

Understand the Legal Landscape of Digital Assets

Different countries have different laws on how digital assets are treated upon death. Some classify them as personal property, others as intangible.

Make sure your digital will complies with your country’s inheritance laws. Seek legal advice if needed.

A good platform may also provide location-based customization or legal integration support.

Use Multi-Layer Security & Redundancy

Even after encryption, add extra protection. Use:

2FA (Two-Factor Authentication)

Split key storage (e.g., Shamir’s Secret Sharing)

Backup beneficiaries in case one is unavailable

Never rely on a single copy of your digital will or keys.

Document How to Use the Tools

Not all heirs will be crypto-native. Include clear, beginner-friendly instructions.

For example:

How to use a Ledger wallet

How to open MetaMask

How to convert tokens to fiat

Attach videos or simple PDF guides in your will system for each tool.

Update Frequently as Assets and Wallets Change

Crypto holdings are dynamic. Prices change. New wallets emerge. NFTs are bought and sold regularly.

Schedule reviews every 3-6 months. Use platforms that remind you to update or automatically sync with your holdings.

Failing to update means loved ones might not receive what you intended.

Avoid These Common Mistakes

Don’t make these crypto will errors:

Writing seed phrases in physical wills (very risky)

Giving access to the wrong person

Forgetting small wallets with high growth potential

Ignoring NFTs with sentimental or resale value

Not encrypting your instructions

Avoid them by being cautious, clear, and secure.

Plan Beyond Crypto: Digital Estate as a Whole

Your digital life isn’t just crypto and NFTs. Include:

Password managers

Email accounts

Online bank accounts

Social media

Gaming assets

Creating a holistic digital will ensures your entire digital footprint is handled responsibly.

Relatable Questions & Answers About Crypto in a Digital Will

Q1. What happens to my crypto if I die without a digital will?

It’s likely to be lost forever if no one has access to your keys or seed phrases.

Q2. Can I just write down my seed phrase on paper?

You can, but it’s risky. Paper can be lost, damaged, or stolen. Encrypt and store it digitally instead.

Q3. How can my family access my crypto after I die?

Through a digital will with clear instructions and private key access - secured in platforms like Cipherwill.

Q4. Is it legal to include crypto in a will?

Yes, but consult your local laws to ensure compliance. Some jurisdictions treat crypto differently.

Q5. Can NFTs be inherited like physical art?

Yes, but you must transfer wallet access or ownership explicitly in your digital will.

Q6. What is the safest way to store my keys for inheritance?

Use encrypted, multi-layer storage platforms that allow conditional access after death.

Q7. Who should I appoint as my crypto executor?

Someone tech-savvy, trustworthy, and capable of understanding blockchain mechanics.

Q8. Do I need a lawyer to make a crypto will?

Not necessarily. But legal consultation helps ensure it’s enforceable, especially for high-value estates.

Q9. How often should I update my crypto will?

Every 3–6 months, or after major changes in your holdings or life events.

Q10. Can I manage my entire digital life, not just crypto, in one will?

Yes! Platforms like Cipherwill are built exactly for that - crypto, NFTs, passwords, and more.

References:

How Do You Include Crypto or NFTs in a Will?