What Happens to Your Crypto When You Die? Crypto Estate Planning in Australia

Written by Ben Simpson, TEDx speaker and founder of Collective Shift (Melbourne, 2020). Collective Shift teaches the 5-step SHIFT Method, a written crypto plan that members build and run themselves, backed by 4.8 out of 5 from 135+ Trustpilot reviews.

Key points (TL;DR)

Why is crypto different from other assets when you die?

Most assets move through the estate process with paperwork. A bank or share registry can transfer ownership once your executor proves who they are. Crypto held on an exchange works in a similar way, although it can take time.

Self-custody is different. If your crypto sits on a hardware wallet and nobody knows it exists, where the backup is, or how to use it, the coins do not disappear. They simply stay on the blockchain until someone can get in, and if nobody can, they stay there for good.

“The last thing you want is to leave your family or your legacy in a place where they can’t actually get access.”

Collective Shift estate planning workshop, Sep 2026

Watch: Ben Simpson on this topic

Key takeaway: Ben covers account security first: two-factor authentication through an authenticator app, secure backup emails, and self-custody with a hardware wallet whose 24 recovery words you protect.

What happens to crypto held on an exchange?

Exchanges are the easier case. Your executor contacts the exchange and follows its deceased estate process, which usually asks for a death certificate, the will and letters of administration or probate. Your family should never try to log in as you. Using the exchange’s formal process protects them and the account.

Your exchange history is also your tax record trail. It shows every purchase, sale and withdrawal, which helps your family and accountant work out what you still hold. See what records you need for crypto tax in Australia.

What should never go in a will or estate document?

Never write a seed phrase, passphrase, PIN, private key or password into a will, an email, cloud storage or a document you hand to a solicitor. Wills can become public, and a document that holds a secret becomes a target.

The Academy’s estate plan worksheet sets two rules before you write anything:

1. The document never holds a secret. It records what exists and who to call, never the keys themselves.
2. The document is still private. Store it physically, keep it out of cloud storage and email, and tell one person it exists.

Write it for an executor who has never used a hardware wallet and is reading it in the hardest week of their life.

What are the five questions in a crypto estate plan?

1. The assets: what do you hold? List each asset by its full name, not just the ticker. No amounts, balances or locations.
2. The record trail: which exchanges have you used? Every platform, including closed ones, with the email each account is registered to and whether a recurring buy is set up.
3. The physical things: what devices and backups exist? Name each hardware wallet, phone and backup, and against each one name a person (not a place) who knows where it is kept. Answer yes or no to whether a passphrase is in use.
4. Your people: who does your family call? An executor, a technical helper, a solicitor and an accountant, each with a phone number. The first step is always a phone call, not an action.
5. The warnings: what must they never do? Never type a seed phrase into a website or app, never give it to anyone claiming to be support, never pay an upfront fee to a recovery service found online, never mention crypto in a death notice, and never rush.

The technical helper is the role most people leave blank, and it is often the most useful. Choose someone who understands hardware wallets, who has agreed in advance, and who your family can ring before touching anything.

“I just recorded my top 9 things every serious investor needs to get right for building a large digital asset portfolio.

1. Fees & spreads
2. OTC
3. Tax structures & SMSF
4. Core Bitcoin holdings + portfolio strategy
5. Entry strategy
6. Exit strategy
7. Custody, protecting large holdings
8. Multi-sig wallets
9. Estate planning”

Ben Simpson on X, 24 Jul 2026 · View on X

How should you set up self-custody so your family can access it?

The workshop compared several common approaches for passing on self-custody, including multi-signature set-ups where more than one key is needed to move funds. Each has strengths and trade-offs, and the main lesson was not to overcomplicate it. A set-up your family can actually follow beats a clever one nobody understands.

• Keep your own accounts secure first. The workshop noted the bigger everyday risk is usually your own account being phished, not an exchange failing.
• Use two-factor authentication through an authenticator app and secure backup emails.
• Tell your family what to do once they have access, for example whether to hold or sell, because many next of kin are not familiar with crypto price swings.
• Link your exchanges to your accountant or tax software now, so the record trail already exists.

For the security basics, see our cold storage guide and how to use Ledger Live.

“Never rush, nothing expires. The crypto will sit there until you get proper access.”

Collective Shift estate planning workshop, Sep 2026

How do you get started today?

1. Write the five answers on paper this week, even if some are incomplete.
2. Tell your executor and technical helper the plan exists, and what their role is.
3. Ask your solicitor to have your will reference the plan without repeating its contents.
4. Store the plan physically, note where any second copy lives, then sign and date it.
5. Set a reminder to review it every 12 months, or after any big change to your set-up.

Collective Shift members work through this as Step 07 of the Academy, with a live workshop and a printable worksheet. Collective Shift does not hold your crypto or manage your money.

This page is general information only, not tax, legal or personal financial advice. Speak with a registered tax agent or solicitor about your own situation.

What is your next step?

If you would like a structured way to apply a complete crypto plan, from buying to inheritance, the Collective Shift Accelerator membership runs for 12 months and opens with 4 live cohort weeks, followed by ongoing access to research, workshops and the Live Crypto Portfolio (see our analysts’ portfolio buys and sells). It carries a 14-day guarantee. You can read member results from members, or check the company facts on our page Is Collective Shift legit?

Where this guide comes from

• Live Workshop: How To Build Your Crypto Estate Plan Live (So Your Family Never Loses Access), Collective Shift members’ workshop, 23 Sep 2026
• Your Crypto Estate Plan (Step 07 of the Collective Shift Academy), member worksheet
• YouTube: 9 Things Every Smart Investor Must Know Before Deploying $500K+ Into Crypto, Ben Simpson, 2026-07-23

Collective Shift live sessions and Academy lessons are available to members. This guide is general education only and is not personal financial advice.

Last updated 31 Oct 2026. Written by Ben Simpson, Founder and CEO of Collective Shift.

General information only. Collective Shift provides research and education, not personal financial advice. We don’t manage your money or hold your crypto. Consider your own circumstances and speak with a licensed adviser and a registered tax agent before acting. Past performance is not a reliable indicator of future performance.