Crypto in your estate plan: how to pass on digital assets in Australia

Last reviewed

Short answer

Crypto can be left in your will like other property, but your executor can only pass it on if they can find and access it. List your exchanges and wallets, explain how to recover them, and store the sensitive details securely and separately from your will. Never put seed phrases in a will, which can become public.

Key facts

  • If nobody has the seed phrase or keys to a self-custody wallet, the crypto can be lost for good.
  • Exchange accounts can usually be claimed by the executor with a death certificate and probate.
  • For tax, crypto is generally treated as a CGT asset. Inheriting it is generally not a CGT event, but a later sale can be.
  • Your executor doesn’t need to be a crypto expert, but they need clear written instructions.

What counts as a digital asset?

  • Crypto on an exchange, such as an Australian exchange account.
  • Crypto in a self-custody wallet: a hardware wallet, mobile wallet or browser wallet.
  • NFTs, domain names, online businesses, ad revenue and creator accounts.
  • Loyalty points, online store credit and payment accounts.

Why is crypto different?

A bank can be told about a death and will release the money to the executor. A self-custody wallet has no bank behind it: whoever has the seed phrase or private key controls the funds, and without it nobody does. Exchange accounts sit in between: the exchange holds the crypto and has a process for deceased estates.

How do I include crypto in my will?

  1. In your will, refer to your digital assets in general terms and say who should receive them, or include them in the residue.
  2. Consider giving your executor express power to deal with digital assets and to get specialist help.
  3. Keep the access details out of the will. A will is read by many people and can become a public document after probate.

What should my instructions include?

  • Every exchange you use, with the email address on the account.
  • Every wallet: type, where the device is, and which coins or networks it holds.
  • Where the seed phrase or recovery details are, and how to use them safely.
  • Who could help, for example a tech-savvy friend you trust.
  • A warning about scams: nobody legitimate will ever ask for the seed phrase.

What about tax?

The ATO generally treats crypto as a capital gains tax asset. Under the CGT rules for inherited assets, a beneficiary who inherits an asset generally takes on the deceased person’s cost base, and tax usually arises when they later sell it. Your executor needs your transaction history to work this out, so keep records or exports from your exchanges.

For your other online accounts, see what happens to your Facebook, Google and Apple accounts.

Common questions

Should I put my seed phrase in my will?

No. Wills are seen by several people and can become public after probate. Keep the seed phrase in a secure place and use your will only to say who should receive the assets.

What happens to crypto if nobody can access it?

If it is in a self-custody wallet and nobody has the keys or seed phrase, it is effectively lost. Crypto on an exchange can usually be claimed by the executor through the exchange’s deceased estate process.

Is inherited crypto taxed in Australia?

Australia has no inheritance tax. Under the ATO’s capital gains tax rules for inherited assets, receiving the crypto is generally not a CGT event, but the beneficiary may pay CGT when they sell or swap it later.

Sources and official help

These guides are general information, not legal or financial advice. Laws differ between states and territories and change over time. Speak to a solicitor or your state or territory public trustee about your situation.