NFTs in an estate: what to preserve

NFTs are unique tokens (art, collectibles, domain names, memberships) held in a wallet. For an estate they behave like self-custody crypto with one extra difference: their value is usually a judgement, not a price. The first question heirs often have is simply: what is this, and does it belong to the estate?

What an NFT is

NFT stands for non-fungible token: a unique digital proof of ownership on a blockchain. It can refer to digital art, collectibles, domain names, access rights or other digital assets. The blockchain records who holds the token; the files it points to (such as an image) are usually stored elsewhere. An important distinction: the token (proof of ownership) is not the same as the rights behind it, an NFT may point to an artwork without transferring copyright or reproduction rights. That is a legal question for a lawyer or notary.

What may exist

• Art and collectibles, the most common; value is subjective and illiquid.
• Domain names and ENS-type names, can have real utility and resale value.
• Memberships and access tokens, worth nothing on paper, valuable to a niche.
• In-game items, platform-specific; access may die with the platform.

How NFTs are held

Like other crypto, NFTs are not “in” an account; access runs through keys:

• Self-custody (a wallet (software, hardware or app) with a seed phrase or private key. Whoever holds the keys can move the token) a technical capability, not legal authority.
• Marketplaces and platforms, some NFTs sit on marketplace accounts; access runs through that account and the platform’s procedure.
• Custodial services, the provider holds the keys; the provider’s account procedure applies, similar to an exchange.

Preservation

• NFTs are tied to the wallet that holds them: the same preservation rules apply (preservation checklist, what did I find?).
• The media file is often stored off-chain (IPFS, cloud); the token is on-chain. Preserve both, the token proves ownership, the file is the thing owned.
• Do not move, list, “test-sell” or “mint” anything before authority is established.
• Preserve proof of provenance: purchase records, transaction data, correspondence.

The honest valuation problem

• There is no official price. Floor prices from marketplaces are indications of asking prices, not value.
• Liquidity is often near zero: “worth” and “saleable for” can be completely different numbers.
• How tax authorities treat NFTs for reporting differs by country; in many, they are treated like other crypto-assets. Verify locally (valuation, tax and reporting).
• Whether and how NFTs are divided between heirs follows the same logic as other crypto (dividing crypto).

What to do

1. Record each NFT in the estate inventory with its chain, collection and token ID, no secrets involved.
2. Value conservatively and mark the basis (floor at a date, recent sales).
3. Get a professional opinion before claiming a large figure to authorities or heirs.

NFTs are neither an emergency nor a windfall: they are assets like any other, with weaker price discovery.