Crypto Inheritance: Make Sure Your Heirs Can Reach It

For crypto inheritance, what decides whether your crypto reaches your heirs is less the choice between an exchange and self-custody and more whether you prepared. That is my opinion, and it’s good news, because preparation is something you control. Below is what I could verify about one state law, one uniform law on fiduciary access and one wallet design, with the rest labeled as my reasoning.

Four Situations (My Framing)

This grid is my own way of organizing the question, not a published classification.

	Prepared	Unprepared
Exchange	Documented	Account unknown
Self-custody	Access plan	Only you know

Crypto Inheritance: What One California Law Does

The Block reported on October 14, 2025 that California enacted a law on unclaimed crypto (SB 822, which LegiScan lists as chaptered, Chapter 660, Statutes of 2025, with the Governor’s approval recorded on 2025-10-11). Accounts untouched for three years, such as those on custodial platforms like exchanges, are treated as unclaimed, and the crypto must be transferred to state custody in its original form, without being automatically sold or converted to cash during the holding period. The Controller may appoint licensed custodians to hold the assets until the owner reclaims them, and may convert assets to fiat if no claimant comes forward, with sales occurring no sooner than 18 months and no later than 20 months after the date the reporting filing is made (The Block). The article doesn’t give an effective date or describe the claims process.

That law applies to custodial platforms, according to the same report.

An example with an assumed date: if a platform’s report were filed on 2029-11-01, then 18 months later is 2031-05-01 and 20 months later is 2031-07-01. That is the window the report describes for any conversion to fiat, and it shows how much time an heir could have to come forward after the filing. It is arithmetic on an assumed date, not a prediction.

What a Uniform Law Says About Fiduciary Access

A Robins Kaplan summary of the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) says it governs how executors and other fiduciaries can access a decedent’s digital assets. It describes a priority order: first an online tool offered by a custodian, then a will, trust or power of attorney, then the custodian’s terms of service, then the statute’s default rules. It says virtual currency is accessible to fiduciaries without the restrictions that apply to electronic communications, and it recommends including digital assets in estate planning documents, naming the fiduciary and keeping an updated inventory, shared cautiously (Robins Kaplan). The summary dates from 2016, when 17 states other than Minnesota had passed versions, so the count has likely changed since then.

One Wallet Design That Spreads Control

Casa describes its vault as a multisig wallet with three keys and a 2-of-3 threshold: a mobile key you hold, a hardware key you hold, and a Casa recovery key. Any two keys must sign to send funds, and Casa holds only the recovery key and can’t move funds alone. The page says losing one key doesn’t mean losing your funds (Casa support). The page doesn’t discuss inheritance. This is one vendor’s description and not a recommendation. I haven’t evaluated Casa’s inheritance features, fees or security.

My reasoning: with a single key that only one person knows, that person’s death or incapacity leaves nobody able to use the funds. A design where several parties hold keys avoids that single point.

What an Heir Gets Tax-Wise, and the Record That Protects It

Getting access is the first step; the second is the tax basis the heir starts with. The IRS says inherited property’s basis is generally its fair market value on the date of the decedent’s death, whether or not the estate files an estate tax return. An alternate valuation date applies only if the executor files Form 706 and elects it, and selling inherited property for more than your basis produces a taxable gain (IRS: Gifts & inheritances).

An assumed example shows why the record matters. Suppose an heir inherits 2 coins that the decedent bought for a total of $20,000 and that were worth $140,000 on the date of death. The heir’s basis is $140,000. If the heir sells for $150,000, the gain is $150,000 − $140,000 = $10,000. If the basis had been the original $20,000, the gain would be $150,000 − $20,000 = $130,000. The prices are made up for illustration, and the point is that the date-of-death value is the number the heir needs to prove.

This adds one item to the inventory the other sources recommend: next to each holding, note the platform or wallet address and, once the time comes, save a dated record of the market value on the date of death. Put the instruction in the letter that goes with your estate documents, so the executor knows to capture it. That way the inheritance reaches the heir with both access and a documented starting basis.

How to Get Started With Crypto Inheritance

List every crypto holding and where it is held. Keep that list where your executor can find it, without keys in it. The RUFADAA summary also recommends an inventory, shared cautiously (Robins Kaplan).
Use any custodian’s online tool for naming who can access an account, since the RUFADAA summary says such a tool takes priority where offered.
Consider spreading control across several keys, as in the 2-of-3 example above.
Keep exchange accounts active and documented, since the California report ties unclaimed status to three years without activity.
Talk to an estate attorney about how to document access.

Crypto Inheritance: Questions Answered

Does the California law apply to self-custody wallets? The report describes it as applying to custodial platforms.

Can an heir recover escheated crypto? The report says the Controller holds it until the owner reclaims it.

Can an executor access my exchange account? Under the framework in the RUFADAA summary, it depends on the custodian’s online tool, your estate documents and its terms of service.

My Take on Crypto Inheritance

In my view, a written inventory and a named fiduciary do more for an heir than any choice of wallet.
In my suggestion, review the plan whenever you move holdings between platforms.

Sources

This article offers general information and my own opinions, not financial, tax, or legal advice. The figures in worked examples are assumed. Laws, tax rules, and products change and can differ by location, so check current official sources and talk to a qualified professional about your own situation.

Your Crypto Doesn’t Have to Vanish — Or Get Taken by the State