What happens to your crypto when you die?
Cryptocurrency does not transfer on death by itself. A blockchain has no concept of a death certificate and waits for a signature that will never come. Heirs who legally own the assets still cannot move them without the private key or seed phrase, and no court can produce one.
Why inheriting crypto is different from inheriting a bank account
A bank can be shown a death certificate and a succession certificate, and will then move money on the strength of them. A blockchain cannot be shown anything. It validates signatures, and a signature requires the private key. Legal entitlement and technical control are separate, and only one of them can be granted by a court.
| Bank account | Self-custodied crypto | |
|---|---|---|
| Who can authorise a transfer | The institution, on legal proof | Only the key holder |
| Effect of a succession certificate | Institution acts on it | No technical effect |
| If the credential is lost | Recoverable through the bank | Permanently unrecoverable |
| Nominee system | Statutory, well established | None in Indian statute |
Is cryptocurrency legally property in India?
Yes. In Rhutikumari v. Zanmai Labs, decided on 25 October 2025, the Madras High Court held that cryptocurrency “is a property, which is capable of being enjoyed and possessed in a beneficial form” and is capable of being held in trust. It was the first Indian judgment to say so expressly.
The case concerned interim relief under Section 9 of the Arbitration and Conciliation Act, 1996, following the WazirX cyberattack. It contains no holding on inheritance, nominees or succession, and is often cited as though it does. The LiveLaw analysis quotes the holding in full.
Being property matters: it means crypto forms part of an estate and passes under a will or under succession law. It still does not tell anyone the seed phrase.
What actually happens in practice
Where crypto is held on an exchange, heirs must approach the exchange with succession documentation and hope its process accommodates them. Where crypto is self-custodied, heirs need the seed phrase. If nobody recorded it, the assets remain visible on the blockchain permanently and are reachable by no one.
This is the outcome the Vidhi Centre for Legal Policy described when it observed, in “When a User Dies, Who Gets the Password?”, that the law may recognise who should receive digital assets as legal heirs without that meaning they will have the means to obtain them.
What you can do about it
The options divide into three: tell someone now and rely on their discretion, split the secret so no single person holds it, or place it somewhere that releases on verified conditions after death. Each trades convenience against the risk of premature access.
| Approach | Trade-off |
|---|---|
| Tell a trusted person now | Simple, but they can act at any time while you live |
| Write it in your will | A will can become a public record in probate — see below |
| Bank safe deposit box | Access on death is slow and procedurally awkward |
| Multisig or split secret | Strong, but demands technical competence from heirs |
| Encrypted vault with verified release | No premature access; depends on the service existing |
Why a seed phrase should not go in your will · The Indian legal position in detail