Best Crypto Estate Planning Tools for Passing Digital Assets to Heirs

Every year, millions of dollars in Bitcoin sits untouched — not because the private keys were lost in a hack, but because the person who held them died without a plan. The "lost coin" problem is real: a 2023 study estimated that roughly 20% of all Bitcoin ever mined is inaccessible, much of it locked in wallets whose owners can no longer be reached.1

A traditional will doesn't know what a seed phrase is. Probate court can't sign a multisig transaction. If you hold crypto, you need a digital estate plan — and the right tool to execute it.

We evaluated three approaches to crypto inheritance — manual hardware plans, balanced hardware solutions, and custodial beneficiary designations — to find the things actually worth buying for securing your digital legacy.

The Three Strategies for Crypto Inheritance

Before we get to the picks, it helps to understand the landscape. Crypto inheritance falls into two broad camps: custodial and non-custodial.

Non-custodial means you hold your own keys. The upside: full sovereignty. The downside: your heirs need to know how to find and use those keys. This usually involves a hardware wallet, a secure seed phrase backup, and a written or video instruction left with a lawyer or trusted executor.1

Custodial means a third party holds the keys on your behalf. The upside: that third party can handle legal transfer to your beneficiaries. The downside: you're trusting a company with your assets — and your heirs are trusting that company to honor its obligations after your death.3

Within non-custodial, there are two advanced techniques worth knowing:

• Multisig (2-of-3): You split your signing power across three devices or locations. Any two can authorize a transaction. You give your heir one key, keep two yourself, and they can recover the funds with a lawyer or executor after your death.1
• Dead Man's Switch: An encrypted service like Inheritify automatically delivers your seed phrase or password to a designated heir if you fail to check in within a set time window.2

Now, the picks.

�� Coldcard — Best for Max Security & Manual Plans

Best for: High-net-worth Bitcoin holders who want air-gapped security and are willing to set up a detailed inheritance plan.

The Coldcard is the gold standard for Bitcoin-only cold storage. It's air-gapped — it never touches the internet — and uses a secure element chip to protect your private keys.1

For estate planning, Coldcard's strength is also its weakness: it gives you total control, which means you need a total plan. The recommended approach is to generate your seed phrase on the Coldcard, store it in a fireproof safe or bank deposit box, and leave a signed, notarized letter of instruction with your executor explaining how to use it.

Advanced move: Pair a Coldcard with a 2-of-3 multisig setup using two additional hardware wallets. Give one key to your heir, keep the other two in separate secure locations. Your heir can't move funds alone, but with a lawyer's involvement they can recover everything.1

Get the Coldcard →

�� BitBox02 — Best Balance of Security & Simplicity

Best for: Users who want strong hardware security with a more straightforward recovery process for heirs.

The BitBox02, built by Swiss company Shift Crypto, strikes an excellent middle ground. It's a hardware wallet with a secure chip and open-source firmware, but its companion app includes a structured backup and recovery flow that's easier for non-technical heirs to follow.1

The BitBox02 uses a microSD card for encrypted backups — meaning you can store a backup in a safe and hand a second copy to your executor with a simple password. The device itself is compact and intuitive, reducing the chance that your heirs fumble the recovery.

For inheritance planning, Shift Crypto recommends creating a clear document — stored separately from the device — that explains the recovery process step by step. Pair this with a dead man's switch service like Inheritify for an extra safety net.2

Get the BitBox02 →

�� Coinbase — Best for Non-Technical Heirs / Custodial

Best for: Beginners or those whose heirs aren't crypto-savvy and want a simple legal transfer.

Coinbase takes a fundamentally different approach. As a custodial exchange, it holds your private keys. But it also offers a designated beneficiary feature — you name who gets your assets, and Coinbase handles the legal transfer after receiving a death certificate.3

This is by far the simplest option. No seed phrases to explain, no hardware to hand off, no multisig coordination. Your heir logs in, verifies their identity, and the assets are transferred.

The trade-off is sovereignty. You don't truly own your coins in the way a Coldcard user does — you're trusting Coinbase's security, compliance, and corporate longevity. For smaller portfolios or less technical families, that's often the right trade.3

Pro tip: Even with Coinbase, leave a written record of your account details and your beneficiary designation with your will. Don't rely on your heir remembering your login email.

Get Coinbase →

Comparison: Custodial vs. Non-Custodial Inheritance

The right choice depends on your heirs. If they can handle a hardware wallet recovery with a notarized letter, go non-custodial. If they'd struggle to install a browser extension, go custodial.

Why This Matters: The $140B Problem

An estimated 20% of all Bitcoin — roughly $140 billion at current prices — is locked in lost or inaccessible wallets.1 A significant portion of that is from holders who passed away without a plan. Don't let your digital wealth join that statistic.

Recomate earns affiliate commissions from some of the products linked in this guide. We only recommend tools we've tested and believe in — the things actually worth buying.

Want a follow-up the article didn't answer? Ask the engine — it carries the article's context.