What happens to your crypto after your death?

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 have never considered.

Around 70% of South Africans still die without a valid Will. Even among those who begin drafting one, Discovery Life 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.

“Many people spend years building wealth in digital assets but never stop to ask what would happen if they died tomorrow,” says Harry Joffe, Head of Legal Services at Discovery Life. “Unlike a bank account, crypto isn't something an executor can simply access by presenting a death certificate.”

Why digital assets require different planning

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.”

Digital assets require private keys, passwords, and two-factor authentication – credentials that only you have access to. A private key is proof of ownership. Lose it, and the cryptocurrency could become permanently inaccessible. Even if your family knows the assets exist, they may never be able to recover them.

Five steps to protect your digital assets

The good news is that the solution is not complicated. You do, however, need to act deliberately, and sooner rather than later.

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.”

Choose an experienced estate planning organisation with expertise across traditional and digital assets, as well as secure processes for storing and transferring passwords, encryption keys and other critical access information.

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 them, 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.

Estate planning isn’t something you do once and forget.

“As your financial life evolves, so should your estate plan,” says Joffe. “If you’ve invested in cryptocurrency, opened offshore accounts or built wealth through digital assets, your Will and estate plan need to reflect that. This ensures that the wealth you have built can be passed on as intended.”

Listen to the Own What’s Yours podcast series on Spotify and iono.fm. Hosted by Harry Joffe, Head of Legal Services at Discovery Life, the series offers holistic, practical and professional estate planning advice.