Adding Crypto and NFTs to Your Texas Will

Bitcoin wallets and NFT collectibles now rival traditional investments. Ignoring them in your estate plan risks permanent loss because private keys die with you. Properly documenting access, valuation, and distribution ensures your digital wealth benefits those you love.

Inventory Every Digital Asset

List each exchange, hardware wallet, and decentralized app holding assets. Include token names, chain addresses, and approximate values. Update the list quarterly because crypto portfolios change rapidly. Store the inventory offline to guard against hacks.

Secure but Share Key Access

Never write private keys directly in your will, which becomes public after probate. Instead, place keys in an encrypted USB stored in a bank safe-deposit box. In the will, reference a memorandum directing the executor to the sealed envelope containing seed phrases. Multi-sig wallets allow partial key sharing, adding security layers that outlive you.

Address Tax and Valuation

The IRS treats crypto as property, taxing unrealized gains at death via estate values. Hire a qualified appraiser familiar with blockchain explorers to capture snapshot pricing on the date of death. For NFTs, document comparable sales on marketplaces like OpenSea to justify valuations.

Choose a Tech-Savvy Executor

Even simple tasks—like confirming a transaction hash—baffle traditional executors. Name someone comfortable with cold wallets, gas fees, and smart-contract functions. Alternatively, appoint a professional custodian to liquidate assets under your instructions. Clear guidance prevents accidental taxable events or lost tokens.

Plan for Chain Splits and Forks

Crypto evolves. Hard forks spawn new tokens, and airdrops deliver surprise assets. Instruct your executor to monitor major forks and claim assets when economically feasible. This proactive clause preserves value your heirs might otherwise overlook.

Avoid Probate Delays with Trusts

Texas probate moves faster than many states, but volatile markets can swing 30 percent in weeks. Funding a revocable trust with crypto bypasses probate and allows immediate management. Trustees can stabilize or liquidate positions without court approval, protecting portfolio value.

Handle International Exchange Accounts

Some platforms restrict access by jurisdiction. Store copies of KYC documents and 2FA backup codes so your executor can clear foreign log-ins. Without them, assets may remain inaccessible indefinitely.