Bitcoin Inheritance: How Self-Custody Can Leave Assets Lost Forever

For Bitcoin holders who pass away without leaving clear instructions on how to access their self-custodied wallets, their assets can become inaccessible to their loved ones.

This is because self-custodied Bitcoin has no beneficiary form, customer service line, or institution that steps in when its owner dies. Unlike traditional investments, there's no paper trail or monthly statements to help executors locate the keys to the wallet.

A letter of instruction can provide clear steps for opening a wallet and point heirs to where the seed phrase is stored. This approach avoids exposing sensitive information that could be misused by outsiders. It's essential to keep this document up-to-date as Bitcoin owners transfer coins or change devices.