Many people think putting a seed phrase in a will is safe enough — after all, a will is sealed and only the executor can see it.
A leading global cryptocurrency platform,suitable for both beginners and experienced traders.
New user benefit: 20% off trading fees upon registration!！
But once a will goes through probate, it becomes a public record. Anyone can request it, take your 24 words, and empty the wallet.
This problem is more common than you think. About 14% to 17% of adults in the United States have owned cryptocurrency, but most have not properly arranged where digital assets should go in a will or trust. Worse, even if you make a will, writing only "I own Bitcoin" without explaining how to find it will not help your heirs — surveys show about 1 in 7 people leaves behind "assets that cannot be inherited."
So where should the instructions for crypto assets be kept? The core rule is simple: asset clues and asset keys must be physically separated, and the clues themselves must not contain enough complete information to take the assets.
Case A: You already have a traditional will and want to add crypto asset instructions
Your will should not contain the seed phrase, but it can say "where to look."
[What to do]: Put only "hint information" in the will itself, and keep the full instructions outside the will.
[How to do]:
Write this in the will: "I hold crypto assets in a self-custody wallet. All materials and instructions needed to recover the wallet are kept in [XX bank safe deposit box / sealed envelope with lawyer / home safe]. See that file for details."
Create a separate "Digital Asset Inheritance Instruction": Store this document separately. It should include: which coins you have, wallet brand and model, where the seed phrase is stored (but do not write the seed phrase itself), where the recovery guide is stored, and exchange account names (do not write passwords).
Make sure the "instruction" and the "seed phrase" are not in the same place: If the instruction says where the seed phrase is stored, do not keep the instruction in the same safe as the seed phrase — otherwise anyone who finds the instruction can also take the key.
[Done when]: Your will does not mention the seed phrase at all, only "another document." A person who reads the will knows "the asset exists" and "where to find further guidance," but cannot take the assets using the will alone.
Some lawyers suggest writing the wallet type and where the seed phrase is stored into the will, while the seed phrase itself should be kept sealed. However, notarized wills under Taiwan's Civil Code Article 1191 require full disclosure to the notary. This creates a "privacy-security paradox": saying too much exposes the private key, but saying too little may make the will invalid.
Case B: You do not have a will yet and want to plan from scratch
In this case you have more choices and do not need to be trapped by the "public nature" of a will.
[What to do]: Choose a way to pass information outside the will, and give the core recovery information to a trusted person instead of writing it into any legal document that may become public.
[How to do]: Here are three common paths. Pick one based on your situation:
| Storage method | How it works | Pros | Risks |
|---|---|---|---|
| Bank safe deposit box | Seal the seed phrase and instructions in an envelope and store it in a bank safe deposit box. In the will, only write "safe deposit box number XX, key is with YY." | Physical separation; bank has a mature access process | The box may be frozen, and heirs may need to go through legal procedures to open it |
| Lawyer custody | Give a sealed envelope with the seed phrase and instructions to your estate lawyer, with an agreement to hand it to heirs after your death. | The lawyer understands the process and can work with will execution | You must ensure the lawyer is trustworthy and will practice long term |
| Dead Man's Switch | Use an on-chain service such as Sarcophagus: upload encrypted recovery information to Arweave, set a decryption time and receiver. You "check in" regularly to extend the deadline. After it expires, the information is automatically decrypted for heirs. | Does not depend on any single third party; runs automatically | Requires technical skill; setting the check-in period too short may trigger it by mistake |
[Done when]: You have chosen at least one method and have stored the seed phrase (or split shares) according to plan. Your will or estate list says "where to look," but no single document contains the complete seed phrase.
Common mistake: mixing "passwords" with "clues"
Some people write in a will, "My seed phrase is 24 words and it is in the second drawer of my desk." If the will stays private it may be fine, but once it is public, it is like sending the key's location to the whole world — and information written in a will may be handled by many people during probate, or even archived.
An even more hidden problem: if your digital asset instructions are mixed with traditional assets in the same will, lawyers, notaries, and court clerks may see the word "cryptocurrency," but few really know how to handle it. Some people put a seed phrase in a will, only for a lawyer who did not understand crypto to treat it as useless paper.
Risk warning
Inheritance planning for crypto assets is completely different from traditional property. Traditional property has account managers and courts can step in. Crypto assets only have private keys. If they are lost, they are gone, and there is no customer service to call. Your will can say, "My Bitcoin goes to my son," but if he never gets the seed phrase, that sentence is legally valid but means nothing on-chain.
A leading global cryptocurrency platform,suitable for both beginners and experienced traders.
New user benefit: 20% off trading fees upon registration!！
How to check your plan
After making your plan, do two things:
Find an estate lawyer who understands crypto assets and have them review whether your current arrangement will hold up legally. There are no dedicated inheritance laws for digital assets in China yet, but the general inheritance provisions in the Civil Code can apply. You need to make sure the "crypto asset distribution" clause in your will will not be ruled invalid by a court because it is written too vaguely.
Do a "blind test": Give your digital asset inheritance instructions to a friend who does not understand crypto at all. See whether they can find "where the seed phrase is" and "who to contact to complete recovery." If they are completely confused, your clues are too hidden — finding the balance between "safe" and "executable" is something you need to adjust repeatedly.
