Do you own any crypto currency? Surveys from Gallup and Pew Research estimate 14% to 17% of American adults own cryptocurrency. As the number of crypto owners increases, so do the chances of crypto being lost upon death. A recent CNBC article, “Why your crypto wealth may never make it to the next generation,” notes that holdings are often tied up in court or lost forever when no estate planning is in place.
Many people either neglect to include cryptocurrency in their estate plans or fail to instruct executors on how to access it. If there’s no will or transfers haven’t been made before death, untangling an estate is difficult, but doable. In the case of cryptocurrency, a large share of inherited assets can be lost permanently and easily.
One way to mitigate this is to use crypto EFTs, which are becoming more popular with investors since their approval in 2024. These funds allow investors to access the crypto asset class without directly owning crypto, reducing the risk of investment loss.
Wills need to include provisions addressing digital assets, including cryptocurrency and the umbrella term "digital assets," which covers websites, social media, photos, airline miles, online accounts and more.
Part of the problem arises when people fail to update their wills for 10 years or more. Without specific language regarding digital assets, heirs may need to go to court to grant the executor authority to access crypto accounts.
While a standard will is appropriate for many people, estate planning attorneys today recommend using revocable living trusts as part of an estate plan. The living trust offers greater privacy and can reduce the time and expense of probate after death.
By transferring crypto assets to a revocable living trust, the trustee has immediate access to the assets upon the owner’s death. If crypto is included in a will, it could take six to eight months, or longer, for the will to be settled in probate. During this period, the executor won’t be able to manage the crypto, the heirs won’t have access and, given the volatility of this asset class, considerable value could be lost.
A revocable trust is paired with a pour-over will, so assets not included in the trust at the time of the person’s death are transferred to the trust.
For Oregon residents, the first 1 million dollars of an estate is exempt from Oregon estate tax; anything above that may be taxed at rates between 10% and 16%. Any cryptocurrency a deceased Oregon resident owns outright is counted toward that estate value at its fair market price on the date of death and may also be taxed at the federal level, if the estate is large enough.
For larger Oregon crypto positions, speak to your tax advisor or estate planning attorney.
Reference: CNBC (Dec. 6, 2025) “Why your crypto wealth may never make it to the next generation”
