Crypto Inheritance: Legal Status and Practical Challenges

Crypto inheritance is gaining legal recognition across major jurisdictions, but remains complex for heirs. In China, the 2021 Civil Code classified virtual assets as personal property. In October 2025, India’s Madras High Court ruled that 3,532 XRP tokens frozen on WazirX qualify as trust property, shifting views from “digital game tokens” to inheritable assets. Despite clarity on crypto inheritance, heirs must prove ownership via private keys or seed phrases instead of traditional deeds. Centralized exchanges require death certificates, identity documents and legal filings, with processes varying by jurisdiction and subject to policy changes. Self-custody wallets pose risks if keys are lost, as seen in the $147M QuadrigaCX fiasco. Valuation and division of digital assets are complicated by volatile prices, reference-date selection and potential tax or compliance issues when liquidating tokens. Lawyers advise recording asset details and public addresses, securing private keys in hardware wallets or multisignature trusts, and monitoring exchange policies. Proactive estate planning is essential to ensure seamless crypto inheritance and avoid permanent loss.