Bitcoin Estate Documents Needed

Required Document Categories for Bitcoin Estates

This memo is published by CustodyStress, an independent Bitcoin custody stress test that produces reference documents for individuals, families, and professionals.

Legal Authority Documents

Estate planning for bitcoin involves document categories that differ from traditional asset planning. Understanding what bitcoin estate documents are needed reveals the gap between standard estate documents and bitcoin-specific requirements. Traditional wills and trusts may address who inherits but not how they access. Technical documentation may address access but not legal authority. Both layers exist, and gaps in either can defeat succession.

Bitcoin creates unique documentation requirements because legal ownership and practical access operate independently. Having legal right to inherit bitcoin means nothing without the technical ability to access it. Having technical access means nothing without legal authority to take possession. These parallel requirements demand parallel documentation.

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Legal Authority Documents

Legal documents establish who has authority over assets after death. These traditional estate planning instruments apply to bitcoin as they apply to other property, but their application to self-custody bitcoin raises considerations that traditional assets do not.

Wills name beneficiaries and may reference bitcoin holdings. A will that mentions cryptocurrency indicates the asset exists but does not enable access. The will grants legal authority; it does not provide technical capability. Without technical documentation, the legal authority cannot be exercised.

Trusts can hold bitcoin and specify how they are managed and distributed. A trust structure may provide advantages around probate, privacy, and control that wills do not. However, the trust document itself does not contain seed phrases or access instructions. The trust establishes the legal framework; technical documentation must exist separately.

Powers of attorney address incapacity scenarios that wills do not cover. An agent empowered to manage financial affairs during the holder's incapacity needs both legal authority and technical access. The power of attorney provides the former but cannot provide the latter without additional documentation.

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Technical Access Documentation

Technical documentation enables physical access to bitcoin that legal documents authorize. This layer of documentation has no traditional estate planning parallel—conventional assets do not require separate technical instructions for access.

Inventory documents record what exists and where. A list of wallets, accounts, and holdings tells heirs what to look for. Without an inventory, heirs may not know bitcoin exists or may fail to find all holdings. The inventory does not enable access but directs attention to what needs accessing.

Location documentation specifies where custody components are stored. Seed phrases, hardware wallets, backup materials—each has a physical or digital location. Heirs cannot retrieve what they cannot find. Location documentation bridges the gap between knowing something exists and knowing where it is.

Procedural documentation explains how to use the materials. Having a seed phrase means nothing if the heir does not know how to restore a wallet. Instructions that walk through recovery, transaction signing, or whatever actions are needed transform materials into actionable access.

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The Gap Between Document Types

Legal and technical documents serve different purposes and are typically created by different people using different frameworks. This separation creates gaps that neither type of document addresses alone.

Estate attorneys prepare legal documents but typically do not address technical access. The attorney drafting a will may know bitcoin is an asset but not how bitcoin custody works. Their documents establish legal authority without bridging to technical capability.

Technical documentation created by the holder may not coordinate with legal documents. Instructions written for heirs may not align with how the will distributes assets. The holder who manages technical documentation separately from legal planning may create inconsistencies between the two layers.

Updates to one type may not propagate to the other. When the holder changes their custody setup, technical documentation needs updating. When the holder changes beneficiaries, legal documents need updating. These updates may not happen in coordination, creating drift between the legal and technical layers.

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Executor and Fiduciary Documentation

Executors and trustees need specific documentation about their bitcoin-related responsibilities. Standard estate documents appoint these fiduciaries but may not address what their role involves for cryptocurrency.

Role clarification documents explain what the fiduciary is expected to do with bitcoin. Are they to liquidate and distribute proceeds? Transfer bitcoin directly to beneficiaries? Hold bitcoin in trust for a period? Without clarity about their role, fiduciaries may not know what they are supposed to accomplish.

Authority documentation establishes that the fiduciary has power over the specific bitcoin holdings. Letters testamentary and trust certificates provide general authority, but specific relationships to particular custodial arrangements may need additional documentation—especially if third-party services are involved.

Guidance documentation helps fiduciaries who are unfamiliar with cryptocurrency. An executor who has never handled bitcoin faces a learning curve. Documentation that anticipates their unfamiliarity and provides context, resources, or contacts for assistance addresses capability gaps that appointment alone does not.

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Multisig and Multi-Party Documentation

Custody arrangements involving multiple parties require documentation that single-holder setups do not. Coordination information, contact details, and agreement records become additional documentation requirements.

Configuration documentation records how the multisig was set up. What threshold applies? Which keys belong to which parties? What wallet software was used? This configuration information enables recovery but lives separately from the keys themselves. Missing configuration documentation can make held keys unusable.

Party identification records who holds what role. Heirs may not know who the other key holders are, how to contact them, or what arrangements exist for their cooperation. Documentation that identifies parties and their roles enables the coordination that multisig recovery requires.

Agreement documentation may establish terms between parties. If key holders have commitments to each other—agreements about when to sign, conditions for cooperation, or compensation for their role—these terms affect how inheritance proceeds. Undocumented agreements leave heirs unaware of obligations or rights they inherit.

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Tax and Compliance Documentation

Estate administration involves tax and regulatory requirements that need supporting documentation. Bitcoin transactions and valuations create records that estate settlement requires.

Cost basis records establish what the holder paid for their bitcoin. This information affects capital gains calculations for the estate and beneficiaries. Without cost basis documentation, tax preparation becomes guesswork that may disadvantage the estate or trigger compliance problems.

Transaction history provides a record of what occurred during the holder's lifetime. Transfers, sales, and purchases all have tax implications. Complete transaction records enable accurate reporting that incomplete records prevent.

Valuation methodology documentation addresses how bitcoin holdings are valued for estate purposes. Date of death valuation, alternative valuation methods, and the records supporting whatever method is used all constitute documentation the estate may need. Valuation without documentation is assertion without support.

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Service Provider Documentation

Bitcoin custody often involves third-party services whose role needs documentation. Exchanges, custody providers, and other services create relationships that heirs must navigate.

Account information documents what services the holder used. Login credentials, account numbers, and contact information for each service constitute documentation heirs need to access or close accounts. Unknown accounts remain in limbo—neither closed nor transferred.

Terms and procedures documentation captures how each service handles inheritance. Different services have different processes for estate access. Knowing what each service requires allows heirs to prepare appropriate requests. Without this documentation, heirs discover procedures only through trial and error.

Contact records provide people at services who can assist. A named contact at a custody service may expedite what would otherwise be slow third-party processes. Documentation that includes who to contact and how represents practical assistance beyond generic account information.

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Gaps When Documents Are Missing

Absent documents create specific failure modes. Each missing piece blocks something that heirs or executors need to accomplish.

Missing legal documents leave authority unclear. Who can act? Who receives what? Without clear legal documentation, disputes can arise, courts may need to intervene, and resolution takes longer and costs more than clear documentation would.

Missing technical documentation blocks access. All the legal authority in the world cannot move bitcoin if no one knows how. Heirs with clear legal rights may be unable to exercise those rights without technical instructions.

Missing coordination documentation prevents multi-party recovery. Keys held by others cannot be utilized if those others cannot be identified and reached. Coordination that depends on documentation fails when documentation is absent.

Missing compliance documentation creates tax and regulatory problems. Estate administrators guessing at cost basis or transaction history face audit risk. Beneficiaries who receive assets with uncertain tax status inherit problems along with value.

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Summary

Understanding what bitcoin estate documents are needed reveals multiple documentation layers: legal authority documents, technical access documentation, fiduciary guidance, multi-party coordination records, tax and compliance materials, and service provider information. Each layer serves different purposes, and gaps in any layer can defeat succession.

Traditional estate documents establish legal authority but do not provide technical access. Technical documentation enables access but does not establish authority. These layers must both exist and coordinate for bitcoin inheritance to succeed.

Missing documents create specific failure modes—unclear authority, blocked access, failed coordination, or compliance problems. The documentation requirements for bitcoin inheritance exceed those for traditional assets because legal and technical dimensions operate independently and both must be addressed.

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System Context

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Bitcoin Inheritance Proof Documentation

What Legal Documents for Bitcoin

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