Global search

Primary navigation

Including cryptocurrency in your Will is slightly different to including other assets. Unlike traditional assets such as shares or bank accounts, cryptocurrency does not leave an obvious paper trail. If it's not specifically listed, it can make it difficult for your loved ones to identify and distribute. For this reason, it's important to ensure your Will is up to date and your cryptocurrency (and instructions for how to access and distribute it) is clearly identified. 

Cryptocurrencies – such as Bitcoin – are becoming an increasingly common investment for many people. However, including cryptocurrency in your Will requires more planning and thought than other traditional assets.

Here we explain a few key things to keep in mind when listing cryptocurrency in your Will.

What is cryptocurrency?

Cryptocurrency is a virtual currency that can be used as a method of exchange online. However, while it can be used for payment (like the Australian dollar) it's not recognised as a currency - but rather, as an asset. 

This is an important distinction when it comes to leaving cryptocurrency in your Will, as it means it is treated like any other asset of your estate.

Things you need to know when including cryptocurrency in your Will

It is important that you specifically list your cryptocurrency in your Will. If you don’t, it will fall into the ‘residue’ of your estate. ‘Residue’ is a catchall term for assets that are not specifically listed in your Will.

If cryptocurrency falls into the residue, then it can be difficult to identify, particularly if you don’t know where to look. But, there’s more to including your cryptocurrency in a Will than simply listing it as an asset. Cryptocurrencies are stored virtually on a "blockchain"; for example, Bitcoin is stored on the Bitcoin blockchain. To access this you need a unique, private key.

It’s crucial that the executor of your Will knows where to find this private key. Having this information will ensure they can easily access your cryptocurrency and distribute it, according to the terms in your Will.  

Know the details of your cryptocurrency wallet

A cryptocurrency wallet, or 'crypto' wallet, is used to store and protect your private key. There are various wallets available, however the most common are:

  • Paper wallets. As its name suggests, this is a physical piece of paper that has a unique private key printed or written on it. It might also include the blockchain address. Paper wallets are less likely to be compromised because they can’t be accessed easily or remotely.
  • Hardware wallets. This type of wallet is external hardware, such as a USB stick. Most hardware devices allow you to add extra security in the form of a PIN or password.
  • Software wallets. The two most common types of software wallets are web and desktop. Web wallets are cloud-based programs that can be accessed from any device that connects to the internet. Desktop wallets are software that can be installed onto your personal computer. These wallets can only be accessed on the computer they’re installed on.

We don’t recommend that you write your private keys into your Will. That’s because your Will becomes a public document – accessible by anyone in the community – if and when probate is granted.

If anyone other than your executor was to access this information, there is a serious risk they could steal your cryptocurrency. We recommended that you discuss the storage and accessibility of your wallet with your lawyer.

Understanding the tax implications of leaving cryptocurrency in a Will

We often get asked whether someone can challenge a Will for a share in cryptocurrency. The short answer is yes, as long as the cryptocurrency is accessible.

Cryptocurrency is treated like any other estate asset. However, the executor may choose to liquidate the cryptocurrency and convert it into Australian Dollars before beginning negotiations. If the executor does this it’s important they are aware of the tax implications. 

According to the Australian Tax Office, you may incur a capital gain tax when you dispose cryptocurrency. For that reason, it’s important that executors get tax advice from a specialised cryptocurrency accredited accountant.

Leaving cryptocurrency in your Will requires thorough planning and thought. If you take the right steps now, it will ensure that the beneficiaries of your estate can inherit your cryptocurrency assets easily, without any delays in the future.

Our experienced Will dispute lawyers are here to help. 

Our team of Will dispute lawyers are here to guide you through every step of challenging a Will. We have a long history of helping people contest a Will and settling Will disputes in Australia. 

It doesn't cost you anything to know where you stand 

Office locations

We’re here to help. Get in touch with your local office.

Select your state below

We have lawyers who specialise in a range of legal claims who travel to Australian Capital Territory. If you need a lawyer in Canberra or elsewhere in Australian Capital Territory, please call us on 1800 675 346.

We have lawyers who specialise in a range of legal claims who travel to Tasmania. If you need a lawyer in Hobart, Launceston or elsewhere in Tasmania, please call us on 1800 675 346.