Inherited Bitcoin from a loved one? This step-by-step guide covers how to find seed phrases, access hardware wallets, deal with exchanges, and understand the estate tax rules for inherited Bitcoin.
Someone you loved died. They mentioned Bitcoin. Now you're the executor or heir — and you're staring at a problem most lawyers and financial advisors have never dealt with.
This guide is for people who just found out they've inherited Bitcoin and don't know where to start. It's also for people who want to make sure their own Bitcoin can be recovered after they're gone.
Bitcoin isn't held in a bank. It's secured by a seed phrase (12 or 24 words, sometimes called a recovery phrase or mnemonic) or a private key. Without this, the Bitcoin cannot be accessed — not by you, not by a judge, not by anyone.
You're looking for one of these:
Seed phrase (most common):
Hardware wallet + PIN:
Exchange account:
Paper wallet:
Don't rush. Think like a security-conscious person who wanted to protect something valuable:
Physical locations to search:
Digital locations to search:
Important: If you find a seed phrase or private key — stop. Do not photograph it with your phone, do not type it into any computer connected to the internet, and do not share it with anyone until you understand how to handle it securely.
Search email for:
For exchange accounts, you'll typically need:
Contact each exchange's bereavement/estate team directly. They have processes for this — it's not uncommon.
If you find a hardware wallet (Ledger, Trezor, Coldcard, etc.):
If you've found the seed phrase but don't know how to recover the Bitcoin, do not try to figure it out alone under stress. Mistakes here can be irreversible.
Safe options:
Hire a Bitcoin inheritance specialist. Companies like:
Find a trusted technical person. This should be someone who:
What you'll do with the seed phrase:
Never share the seed phrase with:
Bitcoin is property for estate purposes. It goes through probate like any other asset (unless held in a trust).
For the estate:
Stepped-up basis example:
Work with a CPA who understands cryptocurrency — this matters for the estate tax return and your personal taxes.
Once you have access to the Bitcoin:
Transfer to your own wallet immediately. Don't leave Bitcoin in the deceased's wallet long-term — you don't know what other copies of that seed phrase exist or who might have them.
Create your own seed phrase. Get a hardware wallet (Ledger, Trezor, or Coldcard), set it up fresh, write down your own new seed phrase, and transfer the Bitcoin there.
Don't tell people. You've inherited something valuable. Keep it private.
Back up properly. Now that you own Bitcoin, read our Bitcoin Seed Phrase Backup Guide — the same mistake that could have trapped your inheritance can happen to you.
Possible scenarios if you can't locate the Bitcoin:
The seed phrase is lost. If there's no backup of the seed phrase and the hardware wallet is dead/wiped, the Bitcoin is permanently inaccessible. This is genuinely lost forever — there's no recovery option, no company to call, no government that can help.
Professional recovery services. If you have a hardware wallet with a forgotten PIN (but not seed phrase), some specialized services can attempt to recover PINs through technical means. This is expensive and not always successful. Companies like Wallet Recovery Services or Dave Bitcoin offer these services for legitimate estate recovery.
The Bitcoin is on an exchange. If the deceased had exchange accounts, contact those exchanges with proper legal documentation. They can freeze the account and work with the estate.
The Bitcoin was sold. Check bank records for large incoming wire transfers, ACH payments from exchanges, or crypto-related tax forms (1099-DA, 1099-B) in prior years.
The best gift you can give your heirs is a clear path to your Bitcoin:
Write a Letter of Instruction — not in your will (wills are public), but in a sealed envelope with your estate documents. Include wallet information, exchange accounts, and how to access them.
Use professional inheritance tools. Casa and Unchained both offer inheritance planning services with multisig structures designed for recovery.
Leave clear documentation. Which wallets exist, what hardware you use, where seeds are stored, who can help your heirs technically.
Consider a trust. A properly structured trust with a Bitcoin-savvy trustee can hold Bitcoin without probate complications.
See our complete Bitcoin Inheritance Guide for the full setup process.
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