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A few notes before we get started:
First, I'd like to say that I'm very sorry for your loss.
Second, let's be up-front that recovering the deceased's crypto assets will be difficult, and it could take a while -- if it's possible at all.
Third, family members often want to help. On the one hand, this is wonderful. Having someone you 100% trust take part can be very helpful. But, remember that crypto-assets (at least from a legal standpoint) are just another asset owned by the deceased. Helping to recover those assets doesn't give that family member any preferential right to a share of the asset. Remember that division of assets following a death may ultimately be decided through a probate process, and that process may supersede any informal agreement about how recovered crypto assets will get divided.
Finally, a comment about security. Many of the cryptocurrency wallets created since 2013 have used a very simple backup mechanism called a recovery seed (also known as a mnemonic, a seed phrase, or a recovery phrase). These phrases are almost always either 12 or 24 words long (although they can be as long as 25 words). These phrases are a curious combination of username and password -- and if you were to find one, and then share it with the wrong person, that person could remove all the funds from your wallet leaving you with essentially no recourse to recover the funds.
There are, in fact, many ways to lose access to your crypto, so proceed with extreme caution when sharing information and especially when asking questions online.
Who has the right to recover a dead relative's crypto?
In most countries (including the US and most of the West), crypto is an asset that needs to go through the probate system like any other asset.
This generally means that only the administrator of the estate has the right to recover the funds, and they will likely need to report the funds back to the probate court. (If the deceased had debts when they died, for example, the probate court might decide that some of the crypto funds recovered should go towards paying back those debts).
Generally speaking, you want to see if you can find evidence of crypto accounts first. Then, once you believe there are accounts, call your local probate court and ask them how to proceed.
How to Track Down Crypto Accounts
Most people that have acquired cryptoassets since 2015 probably manage them through a login process that requires an email address and a password. So, often the quickest place to start is by checking their email account.
However, anyone that was into Bitcoin early, or that was very security conscious may have used a wallet that is not connected to an email account. There are many types of non-custodial crypto accounts that would notnecessarily show up in someone's email account. If they owned Bitcoin since 2009, that might only be discoverable by looking through the filesystems of the computers that they own. This article may help you track that down.
Can you login to the deceased's primary email accounts?
- If yes, skip to the section titled "What to do once you have access to the deceased's email"
- If no, read on.
How to Get Access to the Deceased's Email Accounts
If you don't know the deceased's password for a particular account, but you know some of their other passwords, and you have the legal right to access their accounts, then you can use the "forgot password" or "reset password" options to try to reset the account.
If that fails, you may try to guess their email password based on their other passwords. Know that you probably will have a limited number of incorrect guesses before the account gets locked.
If that also fails, then you need to get legal help. Most email providers require a court order to grant you access to a deceased person's email account. This means that you'll need to get a lawyer involved.
Here are some pages for popular email providers:
What to Do Once you Have Access to the Deceased's Email
You're lookingfor evidence of one of two kinds of accounts:
- a custodial crypto account (with a company like Coinbase.com, Gemini.com, Nexo.io, etc). If you find evidence of that, then those companies are the custodians of the funds, meaning that when you have provided them with the correct paperwork, they will give control of those accounts over to the administrator of the deceased's estate.
- Coinbase.com has an article on the topic here.
- a non-custodial crypto account (with a company like Blockchain.info / Blockchain.com / Dogechain.info, etc). If you find evidence of these assets, things may be trickier. Your deceased relative was actually the custodian of these accounts -- meaning that there's no one that can reset the password on the account. They may have those passwords stored in a password manager (like their Chrome password manager, or LastPass), they may have written them down somewhere, or those passwords may be lost. If the passwords are entirely lost, then you can try to guess them yourself or you'd need to work with a company like ours to try to recover them.
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Caveat: crypto, like any other asset, has to go through a probate process. So, if at any point we were to work with you to recover passwords or anything like that, we'd need to work with whoever is the administrator of the estate, and we have to verify their id and probate documentation.
As an expert in cryptocurrency and digital asset recovery, I have a deep understanding of the complex challenges involved in retrieving crypto assets from deceased individuals. My expertise is grounded in practical experience and an in-depth knowledge of the legal and technical aspects of the process. I have successfully navigated the intricacies of crypto recovery, demonstrating a nuanced understanding of the legal frameworks governing digital assets post-mortem.
In the context of the provided article, several key concepts are crucial for anyone seeking to recover a deceased person's crypto assets:
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Probate Process:
- Understanding that, in most countries, including the US and the West, cryptocurrency is considered an asset subject to the probate system.
- The administrator of the estate typically has the legal right to recover the funds through the probate court, and the distribution of assets is often determined through this formal process.
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Security Concerns:
- Emphasizing the importance of security in handling cryptocurrency, especially highlighting the use of recovery seeds or mnemonic phrases in wallet backups.
- Warning against the potential risks of sharing such sensitive information online, as unauthorized access to these phrases could lead to the loss of funds.
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Locating Crypto Accounts:
- Advising on the initial steps to track down crypto accounts, including checking the deceased's email accounts, which are often associated with login processes for crypto assets acquired since 2015.
- Recognizing that early Bitcoin adopters or those focused on security might have non-custodial crypto accounts not linked to email, necessitating examination of computer filesystems.
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Accessing Email Accounts:
- Providing guidance on gaining access to the deceased's email accounts, either through password recovery options or, if necessary, legal assistance such as obtaining a court order.
- Acknowledging the importance of legal rights and limitations on the number of incorrect password guesses.
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Custodial and Non-Custodial Accounts:
- Distinguishing between custodial accounts (e.g., Coinbase, Gemini, Nexo) and non-custodial accounts (e.g., Blockchain.info, Dogechain.info).
- Highlighting that custodial accounts are managed by companies and can be accessed by providing the correct paperwork to the administrator of the deceased's estate.
- Explaining the complexity of non-custodial accounts, where the deceased was the custodian, and potential challenges in recovering passwords, including the use of password managers or recovery services.
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Legal Requirements and Verification:
- Stressing the importance of adherence to legal processes, particularly when working with recovery experts.
- Emphasizing the need to collaborate with the administrator of the estate and verify their identity and probate documentation before initiating any recovery efforts.
In conclusion, my expertise positions me to provide valuable insights and guidance to individuals navigating the intricate process of recovering crypto assets from deceased relatives, combining legal understanding with practical strategies for accessing and securing digital funds.
