By Ilan A. Nieuchowicz, Esq. · Florida and District of Columbia attorney · Published and reviewed 2026-08-14 · 8-minute read
In short
Bitcoin can pass at death, but legal succession and technical access are separate problems.
The governing will, trust, beneficiary arrangement, account contract, or ownership structure may identify who is legally entitled to Bitcoin. That does not ensure anyone can locate or control it. A workable plan coordinates fiduciary authority, inventory, custody, access instructions, security, valuation, basis records, and tax review without exposing a seed phrase or private key.
Start by identifying how the Bitcoin is held
Bitcoin held through an exchange or other custodian presents a different succession problem from self-custodied Bitcoin. A custodian may have an account process and records. With self-custody, possession of the signing credentials may be the practical ability to move the asset, and there may be no company capable of restoring access.
The inventory should therefore distinguish custodial accounts, hardware wallets, software wallets, multisignature arrangements, collaborative custody, business-owned holdings, trusts, and any beneficiary or transfer-on-death feature that actually applies. The inventory should describe the system without placing access secrets in a will, public probate file, ordinary cloud note, or initial attorney email.
Florida law allows directions about disclosure
Florida’s Fiduciary Access to Digital Assets Act addresses access by personal representatives, trustees, guardians, agents, and designated recipients. A user may use a custodian’s online tool to direct disclosure or nondisclosure. If that tool remains modifiable, its direction can override a contrary direction in a will, trust, power of attorney, or other record.[1]
If no qualifying online direction exists, the user may authorize or prohibit disclosure to a fiduciary in a will, trust, power of attorney, or other record. The statute preserves terms-of-service rights and does not give a fiduciary more rights than the user held.[1]
Chapter 740 does not solve every self-custody problem
The Act supplies procedures for obtaining digital assets from a “custodian,” as defined by the statute. A self-hosted wallet may have no custodian holding the private key or account content. A personal representative can have legal authority over estate property and still face a practical access failure if no secure recovery design exists.
That is why a succession plan should separate the legal documents from the operational recovery instructions. The legal document can identify authority, beneficiaries, standards, and fiduciary powers. A separate controlled system can explain how authorized people locate devices, identify the custody design, contact a collaborative custodian or technical professional if applicable, and perform a tested recovery without publishing the secret itself.
Never place the seed phrase in the will
A seed phrase or private key is not merely descriptive information; it may enable control of the asset. Wills and probate filings can become accessible through public court records. Email, text messages, website forms, and ordinary document portals may also be inappropriate for transmitting signing credentials.
- Do not send a seed phrase, private key, wallet password, PIN, passphrase, or authentication code to the firm through an initial inquiry.
- Do not assume a family member who knows where the hardware wallet is can lawfully or safely use it.
- Do not rely on one untested person, device, location, or memory.
- Do record enough non-secret information to identify the custody system and responsible contacts.
Tax and basis records belong in the plan
The IRS treats digital assets as property for federal income-tax purposes.[2] Property acquired from a decedent commonly receives the basis treatment described in Internal Revenue Code § 1014, subject to its conditions and exceptions.[3] The fiduciary may need reliable date-of-death valuation, transaction history, acquisition records, wallet attribution, and professional tax advice.
Do not assume that transferring Bitcoin to a trust during life and inheriting Bitcoin at death produce the same basis or estate-tax result. Ownership, retained powers, inclusion, gift reporting, and the actual trust design matter.
A practical planning sequence
- Inventory without exposing secrets. Identify account types, wallets, devices, custody roles, entities, and approximate tax records.
- Choose the legal path. Coordinate the will, revocable or irrevocable trust, business documents, beneficiary directions, and fiduciary powers.
- Design recovery separately. Create secure, tested instructions for authorized access without placing credentials in public documents.
- Test incapacity and death scenarios. Confirm who acts, what evidence a custodian requires, and what happens if one signer, device, or location is unavailable.
- Review valuation and tax records. Preserve enough history for basis, gain, estate administration, and reporting analysis.
Related guidance
Primary sources and authorities
Attorney Advertising. General information only; not legal advice. The governing documents, facts, current law, forum, deadlines, and procedural posture require attorney review. Reading this page or contacting the firm does not create an attorney-client relationship. No outcome is guaranteed.