Dividing crypto between heirs

Division is a legal step before it is a technical one. Dividing a wallet fairly sounds simpler than it is: a wallet is not a divisible bank account, not every heir wants crypto, and the division must be legally and tax-correct. This page sets out the main lines.

The legal step

Who inherits what is decided by the will or by succession law, and documented (a certificate of inheritance, probate or the local equivalent). Only after authority is established may anything be moved. An executor administers; heirs receive; both must work within the legal framework. The division does not have to be in equal currency: heirs may agree that one person takes the crypto and another receives a compensating asset, best recorded in writing with the relevant professional.

Why splitting crypto is not automatic

A wallet is not a bank account. There is no “split” button; a self-custody wallet can only be moved in whole or sent to multiple addresses, and every move requires the access material. Four practical complications:

• Access first, nothing can be divided without technical access (device, password, seed phrase or passphrase).
• Divisibility, most crypto is divisible in principle, but every transfer is a transaction with its own rules and costs.
• Illiquid positions, staking, lock-ups and DeFi positions cannot simply be sold or divided; they have terms and procedures of their own.
• Small amounts, transaction costs can be disproportionate to the value; a conscious choice is needed.

The three practical routes

1. In kind, each heir receives the coins or tokens directly to their own wallet. Requires the division to be technically executable and all involved to agree on the value.
2. Settling, one heir takes the crypto; others receive other assets or a cash equivalent. Common when not everyone wants crypto or can manage it.
3. Sale, the position is sold and the proceeds divided (valuation and tax rules apply). The simplest route, but it can have tax consequences and is not always possible on short notice.

Each route has different tax, valuation and technical requirements.

Valuation and tax

Value is generally determined at the date of death for inheritance purposes, using a documented price source. Which price source and method apply is a question for a tax adviser or notary; selling crypto can also create tax consequences for the heir who sells. Reporting rules differ by jurisdiction, a tax adviser is the source for the numbers that apply to you.

What not to do yourself

• Do not move or sell crypto before authority and the division are established.
• Do not impose a “fair” split without the agreement of the heirs and without recording it.
• Do not share secret access material to make a division possible.
• Do not pay anyone who claims they can “quickly” arrange the division or “release” the crypto.

Before anything is moved

Authority established, inventory complete, access material confirmed, valuation documented, and the intended route agreed in writing. Then, and only then, execution.

Can the crypto be divided before probate or the equivalent is complete? Generally no. Authority comes first: the estate’s representative is the only person who may move assets, and platforms act on the official authority documents, not on an heir’s request. Dividing before authority creates legal and practical risk, see legal authority vs technical access.

Who to look for in your area

The legal division can be recorded by a notary or estate lawyer in your area, search for one who handles inheritances. The technical execution (moving the coins) happens only within that framework, by those authorised. This website explains the process; it does not execute divisions.

Rules and deadlines can change, and this page may not yet reflect the latest position, have the current rules confirmed by a local lawyer, notary or tax adviser before acting. Spotted something that no longer matches? Contact us and we will correct it.