Your Client Has $500K in Crypto and No Seed Phrase: Now What?
The American Bar Association’s January-February 2026 issue of Probate & Property features two articles on digital assets in estate planning—a signal that this is no longer a niche concern. It’s mainstream practice.
The Scale of the Problem
Digital assets now routinely include:
- Cryptocurrency and NFTs (often worth six or seven figures)
- Social media accounts with monetization value
- Cloud storage containing irreplaceable photos and documents
- Online businesses and domain names
- Subscription services and digital purchases
- Password-protected financial accounts
Without proper planning, these assets can become inaccessible—or lost entirely—upon a client’s death or incapacity.
The Cryptocurrency Challenge
Crypto presents unique risks. If a client holds Bitcoin, Ethereum, or other digital currencies in a self-custodied wallet, access depends entirely on private keys or seed phrases. Without them, heirs cannot claim the holdings. Period.
Unlike a bank account, there’s no institution to petition, no court order that can compel access. The assets simply become unreachable.
Institutional custodians like Coinbase Custody, Fidelity Digital Asset Services, and Fireblocks Trust Company are expanding estate transfer services—but only if the client uses these services in the first place.
Legal Framework Still Evolving
The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) has been adopted in most states, giving fiduciaries clearer authority to access digital assets. States like Wyoming, Vermont, and Delaware have gone further, recognizing blockchain records and treating digital assets as property.
However, smart contracts as testamentary instruments remain largely untested in American courts. The enforceability questions are real.
Practical Steps
- Inventory digital assets during estate planning—including approximate values
- Document access information securely (not in the will, which becomes public)
- Use password managers with emergency access features
- Consider institutional custody for significant crypto holdings
- Include specific digital asset provisions in estate documents
The Ethical Obligation
Lawyers unfamiliar with digital assets risk breaching confidentiality, mishandling key material, or misrepresenting asset accessibility to courts. The duty of competence requires either developing expertise or engaging qualified advisors.
Digital assets aren’t going away. Estate plans that ignore them are incomplete.