What happens to my crypto when I die?

I recently tried to cash in a bitcoin. It’s a physical bitcoin that is active, and I have the bitcoin address. Then I realised I had lost the private keys to use it and, well, you can guess. It made me realise that, if I wasn’t around, what would happen to my crypto investments? How would my family, who are far less techie than me, survive?

This was prompted by a panel I moderated the other day, and I got a script of the discussion afterwards. The thing is the panel was under Chatham House Rule, so I cannot share the full script but, using ChatGPT, I got it to summarise the debate in bullet form.

Panel: “When your money dies with you – who is responsible?”

• Chris Skinner
• Central Banker / Regulator
• Crypto Founder / Technologist
• Legal Expert (Estate / Probate)
• Bank Executive (Retail / Wealth)

Opening by me

“Good afternoon, everyone. Let me start with a provocative statement: In the world of cryptocurrency, your money can die with you. Not frozen. Not transferred. Just… gone. So today’s discussion is simple: Who is responsible for ensuring digital wealth survives death? Is it the individual, the industry, or policymakers? Let’s start with the regulator. Is this a niche issue, or something policymakers should worry about?”

Regulator angle:

• Early stage, but growing rapidly
• Consumer protection risk
• Potential systemic inefficiency over time
• Regulatory frameworks not designed for bearer assets

To the crypto-founder: “What do you think. Isn’t this just personal responsibility? That’s the whole point of crypto.”

Crypto angle:

• Yes – self-sovereignty means accountability
• ‘Not your keys, not your coins’
• Industry is building solutions (multi-sig, social recovery)
• Over-regulation risks breaking decentralisation

“Let’s look at the legal perspective. How often are you seeing this in practice?”

Legal angle:

• Increasing frequency
• Executors unable to access assets
• Wills referencing assets that cannot be retrieved
• Gap between legal entitlement and technical reality

“Let’s get to the heart of it. If the law says an heir owns an asset… but the code says they can’t access it, which one wins?”

Legal Expert: “from a legal standpoint, ownership is clear – but enforcement is failing.”

Crypto Founder: “code is enforcement. That’s the innovation.”

Regulator: “but if legal rights cannot be enforced, we have a breakdown in trust.”

Bank Executive: “this is why intermediaries still matter – they bridge that gap.”

My follow-up: “So are we saying decentralisation breaks inheritance? This sounds like a technology issue, but isn’t it really about identity? How do we prove who owns the asset; who has the right to access it; and when does that right transfer? I mean banks have solved identity for decades. What’s different now?”

Bank angle:

• Identity is institutional and recoverable
• Delegation (power of attorney, probate) works
• Crypto removes that safety layer
• Opportunity for banks to re-enter as trusted custodians

To the crypto founder: “Can decentralised identity solve this?”

Crypto angle:

• Yes – DID, zero-knowledge proofs, smart contracts
• Programmable inheritance is possible
• But adoption and usability are still barriers

“Let’s make this uncomfortable. Should regulators step in and require that citizens have full disclosure of digital assets, their recovery mechanisms or identity-linked wallets?”

Regulator:

• Focus on standards, not control
• Encourage disclosure and planning
• Avoid stifling innovation

Crypto Founder:

• Mandates risk undermining decentralisation
• Education > regulation

Legal Expert:

• Some minimum standards needed
• Otherwise fiduciary duties cannot be fulfilled

Bank Executive:

• Hybrid model likely: self-custody + regulated services

Me: “So we’re balancing innovation… against people losing their life savings forever. Let’s fast forward five years. What does a well-functioning system look like?”

Regulator:

• Interoperable digital identity frameworks
• Recognised standards for digital estate planning

Crypto Founder:

• Seamless, user-friendly inheritance tools
• Smart contract-based transfer mechanisms

Legal Expert:

• Clear integration of digital assets into wills
• Executors with technical pathways to act

Bank Executive:

• Trusted intermediaries offering optional custody and recovery
• AI-driven financial management across lifecycle events

Me: “Let me bring in the audience. How many of you have documented your digital assets in your will?

Half the audience raised hands.

And how many of you are confident your family could actually access them?”

Most hands went down.

“Let’s close with one sentence from each of you: Who is responsible for making sure your money doesn’t die with you?”

• Regulator: “We create the framework, but individuals must act.”
• Crypto Founder: “Self-sovereignty means self-responsibility.”
• Legal Expert: “Without planning, rights are meaningless.”
• Bank Executive: “Trust still needs an institution.”

My closing summary: “We’ve built a financial system where money moves instantly across borders. Now we’re debating how to make it move across generations. And perhaps the real takeaway is this: Technology has solved control, but not continuity. Thank you.”