Crypto inheritance glossary

A plain-language glossary of crypto inheritance terms. Every definition includes what the term means in an inheritance context, the one thing technical glossaries never explain. Use it when a document, an email from a platform, or a conversation with a professional uses a word you do not recognise.

2FA (two-factor authentication)

An extra login step (a code from an authenticator app, a text message or a hardware key) required in addition to a password. In an estate, 2FA can be the difference between access and a locked account, because the recovery codes often exist somewhere the person who passed away kept them. See 2FA and wallet access after a death.

Address (wallet address)

A long string of letters and numbers that identifies where crypto can be sent. An address is public and appears on the blockchain; finding one in the estate’s documents is a clue, not access. See why a wallet balance proves nothing.

Altcoin

Any cryptocurrency other than Bitcoin. Altcoins often have their own wallets, exchanges and networks, so the estate may need several different routes to access them.

Authenticator app

An app that generates time-based login codes for 2FA. After a death, the phone holding the app matters more than the passwords: without the app or its recovery codes, the account may be locked even if the password is known.

Backup (recovery backup)

A stored copy of the recovery material for a wallet, usually 12 to 24 words, a file or a device. Finding a backup after a death can be the entire solution; losing or touching it incorrectly can be the entire problem. See what did you find?.

Beneficiary

A person or entity entitled to receive assets. In crypto, few platforms offer beneficiary designations, so most crypto passes through the estate process rather than a direct transfer. See exchange accounts after a death.

Blockchain

The public, shared record of transactions for a cryptocurrency. It shows where assets moved, but it does not show who controls the keys today, which is why blockchain records are evidence, not access.

Cold storage

Crypto held in a way that is not connected to the internet, a hardware wallet, paper wallet or offline device. Cold storage is common for long-held assets and is often exactly what an estate finds in a safe.

Custodian

A person or company that holds crypto or keys on someone else’s behalf. After a death, a custodian may hold part of the access chain, and the estate’s documents should say who that is.

DeFi (decentralised finance)

Financial applications built on blockchains, staking, lending, liquidity pools. DeFi positions do not stop after a death: lock-ups, unbonding periods and liquidations continue, and the estate needs the records and keys. See DeFi positions after a death.

Encrypted container / encrypted drive

Storage protected by encryption, a VeraCrypt or TrueCrypt container, a BitLocker-encrypted disk, a LUKS volume, or a password-protected archive or backup. The encryption protects whatever is inside, which is often the wallet files or backups themselves. Never try to open or “unlock” it yourself; preserve the medium and any written password separately. See encrypted drives and containers after a death.

Exchange

A platform where crypto is bought, sold and held in an account. Exchange-held crypto follows the platform’s official procedure for customers who have passed away; it does not need technical recovery. See exchange accounts after a death.

Executor / administrator

The person appointed to administer an estate, the executor under a will, or the administrator when there is no will. They are the person platforms and institutions will deal with. See the executor’s guide to a crypto estate.

Hardware wallet

A physical device (such as a Ledger, Trezor or BitBox) that keeps keys offline. In an estate, the device alone is not enough, the PIN and often the seed phrase are required too. See how to preserve a hardware wallet.

Hot wallet

A wallet connected to the internet, a phone app, desktop program or browser extension. Hot wallets are easier to access but also the first place to check after a death, because they may still hold a logged-in session.

Inheritance tax / estate tax

Tax on assets passing after a death. Crypto is an asset like any other for this purpose in most countries, and the reporting rules vary. See valuation, tax and reporting.

Keystore / JSON file

A wallet file format, common with Ethereum wallets, that contains an encrypted private key protected by a password. Finding a UTC-- file is meaningful; the password is the second half. See the wallet format library.

Liquidity pool

A DeFi structure where users supply assets to enable trading. Pool positions may be locked or partially liquid, and the estate needs the records of which pools were used. See DeFi positions after a death.

Mnemonic phrase

Another name for a recovery phrase, the words that can regenerate a wallet, usually 12 to 24 (some wallets use other counts). See seed phrase below.

Multisig (multi-signature)

A wallet requiring more than one signature to move funds, for example, two of three holders. Multisig can be used for inheritance deliberately, but it means the estate must coordinate with the other signers. See bitcoin multisig inheritance.

NFT (non-fungible token)

A blockchain record of ownership for a digital item, art, collectibles, memberships. NFTs are assets in an estate and may be tied to specific marketplaces and wallets. See NFTs in an estate.

Non-custodial

A wallet where you control the recovery words and private keys yourself, rather than a company holding them for you. Most wallet software and all hardware wallets are non-custodial; exchange accounts are custodial. See exchange or self-custody.

Notary

A legal professional who authenticates documents and, in many countries, administers succession, issuing certificates of inheritance and verifying who may act. The role and its powers differ strongly by country. See getting help.

Paper wallet

A printed or handwritten record of a private key or recovery phrase. Paper wallets are fragile and often found in unexpected places after a death, and must be preserved exactly as found. See paper wallets after a death.

Passphrase

An extra word or string added on top of a seed phrase to protect a wallet. Without the passphrase, the seed phrase alone may not restore the funds, a common cause of “found the words but nothing is there”. See wallet passwords and passphrases.

Private key

The secret that proves control of a wallet. Whoever has the private key controls the crypto. In an estate, a private key is the most valuable (and most sensitive) document that can be found. Never photograph or send it, and never type it into a website, app or form. The only legitimate place it is entered is the official device or wallet software from the official channel that you are certain is genuine, after authority is confirmed. A private key is one key, usually a long string of letters and numbers; a seed phrase is the set of words from which a wallet’s keys are generated. See what is a private key and what is a seed phrase.

Probate / certificate of inheritance

Documents proving who may administer an estate. The name depends on the country, probate, letters of administration, certificate of inheritance, certificat d’hérédité, Erbschein. Institutions require one before they release assets. See crypto estate documents explained.

Public key

The part of a key pair that is safe to share and is used to derive addresses. Public keys appear in records; private keys never should.

Recovery phrase

The words that can restore a wallet, the same thing as a seed phrase or mnemonic phrase. Standard BIP-39 lengths are 12, 15, 18, 21 and 24 words; some wallets use other counts. See seed phrase below and what is a seed phrase.

Seed phrase

The words that generate a wallet’s keys usually 12 to 24 (standard BIP-39 lengths are 12, 15, 18, 21 and 24), with some wallets using other counts. They are the key material for self-custody crypto: anyone with the words controls the funds, but possession is technical access, not legal ownership. In an estate, finding it is the goal; typing, photographing or sharing it is the classic mistake. See what is a seed phrase and you already made a mistake.

Self-custody

Holding the keys yourself instead of on an exchange. Self-custody gives full control and full responsibility: after a death, the estate needs the key material plus legal authority. See exchange account or self-custody?.

Smart-contract wallet

A wallet controlled by a smart contract rather than a simple key pair, used by Safe and account-abstraction wallets. The contract itself has no seed phrase, so recovery follows different rules. See smart-contract wallets.

Staking

Locking crypto to support a network in exchange for rewards. Staked positions may have unbonding periods that continue after a death. See DeFi positions after a death.

wallet.dat

The wallet file used by Bitcoin Core and other Bitcoin-family clients (Litecoin, Dogecoin and similar). It contains the wallet’s keys and must be preserved with the right software version; opening it in the wrong version can be destructive. See wallet.dat files.

Wallet software

The program that manages keys and addresses, a desktop app, phone app or browser extension. Different software uses different file formats, which is why the estate should identify the format before touching it. See the wallet format library.

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