What happens to your crypto after death?
· Citizen
Estate planning is no longer just about your house, bank accounts and investments. As more South Africans build wealth in digital assets such as cryptocurrency, many are creating an estate-planning challenge they may have never considered.
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Harry Joffe, head of Legal Services at Discovery Life, says around 70% of South Africans still die without a valid will. Even among those who begin drafting one, data shows that only 55% complete the will-drafting process, meaning many never end up with a legally valid will.
At the same time, digital assets are becoming increasingly mainstream. According to the South African Reserve Bank, around 7.8 million South Africans – roughly 13% of the population – were using cryptocurrency platforms by mid-2025.
Platforms such as Luno and VALR have made digital assets accessible to ordinary investors, while tokenised investments and stablecoins are becoming a growing part of many South Africans’ financial portfolios. Yet many investors have never considered what happens to these assets when they die.
Why crypto requires different planning
“Many people spend years building wealth in digital assets but never stop to ask what would happen if they died tomorrow,” says Joffe. “Unlike a bank account, crypto isn’t something an executor can simply access by presenting a death certificate.”
With traditional assets such as a bank account, unit trusts, or a share portfolio, an executor can approach the institution, prove their authority and begin administering the estate.
With digital assets, that process is more complicated and depends on the rules of that particular exchange.
“The biggest risk your estate faces with digital assets is a lack of access. Either because no one knows the asset exists, or because they know about it but cannot get in,” says Joffe. “Unlike traditional financial institutions, there is no customer service department that can assist with resetting a password or grant an executor access to a crypto wallet.”
Five steps to protect your crypto
1. Include digital assets in your will
Your will should note that you hold digital assets and where they are held. It should provide a clear roadmap for the executor of your digital estate, including cryptocurrency holdings, online investment platforms and other valuable digital assets.
2. Never store passwords in your will
While your will should reference your digital assets, it should never contain passwords or private keys. Instead, store them securely in a digital vault, encrypted document or another secure location, and explain in your will how your executor can access them.
One of the biggest challenges when an estate includes crypto is ensuring your executor can access your passwords after your death without compromising their security while you’re alive.
3. Leave clear instructions and details
Accessing digital assets often requires more than a password. Two-factor authentication, authentication apps and recovery phrases may all form part of it. Document the steps required to access your assets and review these instructions whenever accounts or passwords change.
4. Choose an executor with digital expertise
One of the most important decisions in any estate plan is choosing the right executor. If your estate includes digital assets, that choice becomes even more important.
“An executor who handles property and pension matters flawlessly may be completely out of their depth with a complicated digital estate,” warns Joffe. “If your estate includes international assets, cryptocurrency and investments across different jurisdictions, you need someone with experience in managing complex estates.”
5. Plan for the tax implications
Digital assets are not exempt from tax simply because they exist online.
Like other assets, cryptocurrency may be subject to estate duty, capital gains tax and, depending on who inherits it, potentially spousal tax relief.
“You need to understand the tax implications associated with your asset and ensure that your estate has enough liquidity to cover the taxes. You should also ensure that they are accurately valued for any potential estate duty and capital gains tax assessment,” says Joffe.