Your Bitcoin doesn't know you're dead. It won't call your spouse. It won't send your seed phrase to your lawyer. It will sit on the blockchain, perfectly intact and perfectly inaccessible, until the end of time.
An estimated $140 billion in Bitcoin alone is permanently lost because holders died without sharing their keys. And that's just Bitcoin. Add Ethereum, altcoins, DeFi positions, NFTs, and exchange accounts, and the real number is staggering.
Cryptocurrency was designed to be trustless - you are your own bank. But this creates a massive problem when it comes to inheritance: if you die and no one knows your seed phrase, your assets are gone forever. There's no "forgot password." There's no customer support. There's no next-of-kin process. The blockchain doesn't care.
So how do you pass on your crypto securely? You can't just put a seed phrase in a regular will - wills become public record during probate. You can't just email it to your spouse - email is incredibly insecure. And you might not want to hand over the keys while you're still alive.
This guide covers the complete solution: from self-custody wallets to exchange accounts, from single coins to complex DeFi portfolios.
When planning your crypto estate, you face a trilemma. You need a solution that is:
Most existing solutions fail at least one of these requirements. Let's look at why.
| Method | Theft Protection | Reliable for Heirs | Privacy | Verdict |
|---|---|---|---|---|
| Paper in a safe | Medium - physical theft | Low - fire, flood, loss | High | Fragile |
| Give keys to a trusted person | Low - they have your keys | High | None | Risky |
| Put seed phrase in a will | Low - wills are public record | Medium - probate delay | None | Dangerous |
| Share via email or cloud | Very low - breach risk | Medium - account may lock | None | Terrible |
| Multisig wallet | High | Low - heirs need technical skill | High | Complex |
| Lawyer + sealed envelope | Medium | Medium - depends on lawyer | Medium - lawyer has access | Expensive |
| Dead Man's Switch + Privacy Shield | High - encrypted | High - automatic delivery | High - server-blind | Optimal |
The last option combines the best of all approaches: your keys are encrypted so that even the service provider can't read them, delivery is automatic (so your heirs don't need to know in advance), and the timing is perfect - they receive the information only when they need it.
The most robust way to handle crypto inheritance is combining two technologies: a Dead Man's Switch and Server-Blind Encryption (what we call Privacy Shield).
A Dead Man's Switch is an automated system that sends a message only if you stop responding. You set an interval (every 1, 3, 6, or 12 months). The system emails you to check in. If you don't click the link in the email after the full interval passes - and after multiple reminder attempts within a grace period - the system delivers your encrypted capsule to your designated heirs.
This solves the timing problem: your heirs only get the information when they need it, not before. You don't need to trust anyone with your keys while you're alive.
But how do you trust the system storing the Dead Man's Switch? You shouldn't have to. That's where Privacy Shield comes in.
When you create a capsule with Privacy Shield, your seed phrase is encrypted using a unique Viewing Key. This key is shown to you exactly once and is never sent to or stored on our servers. We store the encrypted data, but we physically cannot decrypt it. Even if our entire infrastructure were breached, an attacker would get nothing but encrypted noise.
We call this "Server-Blind at Rest" - because while your capsule is stored, the server is blind to its contents. For a full technical explanation, see our Privacy Shield deep dive.
When the Dead Man's Switch triggers, your heirs receive the encrypted capsule. They combine it with the Viewing Key you left them, decrypt the instructions, and recover the funds. At no point does SealedFor or any other third party have access to your crypto.
Your heirs may not be crypto experts. That's fine - but it means your instructions need to be crystal clear. Here's what they'll go through:
Write your instructions as if you're explaining to someone who has never used crypto before. Include:
Crypto inheritance isn't just about seed phrases. Your digital asset portfolio may include several categories, each with its own inheritance challenges:
Centralized exchanges hold your crypto in their wallets. You don't have a seed phrase - you have login credentials. If you die, your family can technically contact the exchange with a death certificate, but this process takes weeks to months and often requires legal documentation from your jurisdiction.
A much faster approach: include your exchange credentials (email, password, 2FA recovery codes) in your capsule. Your heirs can log in immediately and transfer the funds to their own accounts before dealing with the formal process.
If you have funds in DeFi protocols (Aave, Uniswap, Lido, etc.), your heirs need to know: which chain, which protocol, and how to withdraw. DeFi positions can change over time - a staking reward accumulates, a liquidity pool rebalances. Include clear instructions and consider simplifying your positions if inheritance planning is a priority.
NFTs live in wallets just like tokens. The seed phrase that unlocks your Ethereum wallet also unlocks your NFTs. But your heirs need to know they exist and what they might be worth. Include a list of significant NFTs and which marketplace to use for selling them (OpenSea, Blur, etc.).
A hardware wallet without a PIN and seed phrase backup is a paperweight. Make sure your capsule includes: the physical location of the device, the PIN to unlock it, the seed phrase as a backup (in case the device is damaged), and basic instructions on how to connect it.
James bought 2 Bitcoin in 2019 and holds them in a Ledger hardware wallet in his home safe. He creates a SealedFor capsule with Privacy Shield, including: the Ledger's location, the PIN, the 24-word seed phrase, and step-by-step instructions for his wife to transfer the funds to Coinbase and convert to USD. He sets the Dead Man's Switch to check in every 3 months. The Viewing Key goes in a sealed envelope in the same safe as the Ledger.
Maria has accounts on three exchanges (Coinbase, Binance, and Kraken), a MetaMask wallet with DeFi positions on Ethereum and Arbitrum, and a small NFT collection. She creates one capsule for her husband with everything: exchange credentials (including 2FA backup codes), the MetaMask seed phrase, a list of her DeFi positions with withdrawal instructions, and a note about which NFTs have significant value. She checks in every month, since her positions change frequently and she wants to update the capsule text regularly.
David has modest crypto holdings ($5,000 in Bitcoin on Coinbase) but also uses crypto as part of a broader digital legacy plan. He creates two capsules: one with his crypto credentials for his wife, and another with personal video messages for his children. Both use the Dead Man's Switch with a 6-month interval. The crypto capsule has Privacy Shield enabled; the personal messages don't need it.
When you're storing information worth thousands or millions of dollars, security isn't optional. Here's how SealedFor protects your crypto credentials:
Important note on transparency: Privacy Shield is not "zero-knowledge" encryption. When the recipient enters the Viewing Key, it briefly passes through our server to perform decryption. We never store it. We call this "Server-Blind at Rest" because we're honest about what it covers. For the full technical explanation, read our Privacy Shield article.
