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Passing on Bitcoin and Crypto Assets: Wills, Inheritance Contracts and Wallet Access
Crypto assets pass to the heirs by operation of law – but are worthless to them if private keys and seed phrases cannot be found. Estate planning and key custody must therefore be designed together.
Last updated: 11 July 2026 · Prof. Dr. Frank Martin, notary in Limburg an der Lahn, Germany
The legal position: inheritable – but practically at risk
Bitcoin and other crypto assets are inheritable. On death they pass to the heirs by universal succession (sec. 1922 BGB). That solves the legal problem – not the practical one: unlike bank balances, self-custodied crypto assets have no intermediary who grants heirs access against a certificate of inheritance. Whoever does not know the private keys or seed phrase cannot dispose of the assets. Estimates suggest a considerable share of all bitcoin ever created is permanently lost this way.
Only for holdings on trading platforms (exchanges) does a contractual access claim exist, which heirs can assert with a certificate of inheritance or – often simpler – a certified copy of the notarial will together with the opening protocol.
The notarial will: more than a substitute for form
A notarial will (sec. 2232 BGB) or a contract of inheritance (sec. 2276 BGB) offers the most reliable framework for a digital estate:
- Clear allocation: crypto assets can be assigned to particular heirs or given as legacies – including partition instructions that reflect the technology.
- Executorship: an executor with technical expertise (or a duty to retain expert help) ensures holdings are secured, valued and properly distributed.
- Certificate of inheritance often unnecessary: an opened notarial will generally replaces the certificate of inheritance – saving heirs time and cost.
- Registration: the deed is kept in official custody and recorded in the Central Register of Wills – it will reliably be found on death.
The access concept: keys separate from the deed
Private keys and seed phrases do not belong in the will itself: the will is opened on death and becomes known to all parties, and it would need amending with every wallet change. The proven approach is separation: the will governs who receives what and refers to a custody system that secures access – a sealed envelope in notarial custody or a bank safe deposit box, a split following Shamir's Secret Sharing among several trusted persons, or a multi-signature arrangement.
A lasting power of attorney should additionally cover incapacity – see the article on the power of attorney for crypto assets.
Inheritance tax
Acquisition on death is subject to German inheritance tax (sec. 1 (1) no. 1 ErbStG); crypto assets are valued at the market price on the date of death (sec. 11 BewG). Given the volatility, this deserves early planning – details in the article on inheritance and gift tax on crypto assets.
Joint will and inheritance contract compared
Spouses often use the joint will (such as the "Berlin will"), in which the partners first appoint each other and then the children as final heirs. For crypto assets, note: after the first inheritance the surviving spouse is bound by the reciprocal dispositions – later adjustments to new wallet structures or holdings are only possible to a limited extent. The inheritance contract (sec. 2276 BGB) offers more room for structuring, for example towards unmarried partners or in business families. Which form fits depends on your family and financial situation.
Legacy of crypto assets instead of appointment as heir
If particular persons are to receive specific crypto assets without becoming co-heirs with all rights and duties, a legacy is suitable: the beneficiary receives a contractual claim against the heirs to transfer the allocated coins. This allows precise allocation – such as "the Bitcoin held on wallet X to person Y" – and keeps the crypto assets out of the general division of the estate. A clear designation of the legacy and alignment with the access concept are essential.
The international inheritance case
Crypto assets are location-independent, but testators and heirs increasingly live across borders. Under the European Succession Regulation, the applicable inheritance law generally follows the testator's last habitual residence; a choice of law in favour of the home country's law is possible and should be expressly made where there is an international element. Holdings on foreign platforms add foreign proof and access requirements. Such constellations should be thought through and documented early.
FAQ on this topic
Yes. Crypto assets pass to the heirs by universal succession (sec. 1922 BGB). The practical issue is access: without the private key or seed phrase, heirs cannot actually dispose of the holdings.
No. The will is opened on death and disclosed to all parties, and it would have to be amended with every wallet change. Better: the will governs allocation and refers to a secure, separate custody system for the access data.
For platform holdings, a certified copy of the opened notarial will plus opening protocol is usually sufficient. A notarial will replaces the certificate of inheritance in most cases – a significant advantage over a handwritten will.
Secure the holdings immediately after death, document the valuation as of the date of death, satisfy legacies and distribute the estate as directed. Choosing someone with technical expertise – or directing them to retain expert help – is advisable.
It depends on the goal. A legacy allocates specific crypto assets to a person without making them a co-heir – ideal for keeping individual wallets out of the division of the estate. Appointment as heir, by contrast, transfers a share of the entire estate. A combination is often sensible; the precise designation of the legacy is decisive.
Under the European Succession Regulation, the applicable law generally follows the testator's last habitual residence; a choice of the home country's law is possible. Holdings on foreign platforms add their proof and access requirements. Such cases should be arranged early.
Related articles
Safeguarding private keys
Notarial custody, safe deposit box, Shamir scheme, multisig – finding the right concept.
Inheritance tax on crypto assets
Valuation at the reference date, allowances, notification duties – and how volatility affects the tax.
Power of attorney for crypto assets
Clearly authorise wallet access, management and disposal in case of incapacity (sec. 1820 BGB).
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Briefly describe the notarial act you have in mind – I will get back to you promptly with an assessment and a proposed appointment.