Custodial vs. Non-Custodial Crypto
Custodial Crypto (Held on an Exchange)
Examples include large exchanges and trading platforms where the user logs into an account and the platform holds the private keys.
In many cases, these assets are recoverable through a process that may require:
-
A death certificate
-
Letters Testamentary / Letters of Administration
-
Proof of identity (and sometimes additional documentation)
Even then, timelines and access can be affected by platform terms, verification procedures, and jurisdictional issues.
Non-Custodial Crypto (Self-Hosted Wallets)
Examples include hardware wallets, software wallets, paper wallets, and self-custody setups where only the owner controls the private key.
Here’s the key point:
If the private key (or seed phrase) is lost, the crypto may be lost forever.
There is no “reset,” no customer service department, and no court order that can force access. The blockchain recognizes control of the key, not probate authority.
Legal Authority vs. Practical Access
This is where many families get stuck.
An executor can have full legal authority to administer the estate and still be unable to access crypto. With cryptocurrency, technical access can matter as much as legal authority.
If the private key or seed phrase isn’t available, the asset may remain inaccessible—regardless of what the will says.
Digital Asset Laws and Their Limits
Pennsylvania has adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which provides a framework for fiduciary access to certain digital assets and records.
In practice, RUFADAA can be helpful for:
-
Confirming an account exists
-
Requesting certain records from custodians/platforms
-
Navigating access to custodial accounts (depending on platform rules)
But it does not “unlock” self-custody wallets or require disclosure of private keys. The law helps with process and records—not cryptographic control.
How We Help Families and Fiduciaries
When crypto is suspected or confirmed, we help clients approach the situation carefully and methodically. Depending on the facts, our work may include:
-
Advising executors and administrators on reasonable discovery steps
-
Identifying whether assets are likely custodial or non-custodial
-
Communicating with custodians/exchanges and helping prepare required documentation
-
Coordinating with tax and financial professionals when reporting and valuation is needed
-
Advising on estate planning steps to reduce the risk of future loss
Planning Ahead: The Best Time to Solve This Problem
The most effective solution is planning while the owner is alive and competent.
Modern estate plans increasingly include:
-
Clear digital asset authority language
-
Instructions that distinguish custodial vs. non-custodial holdings
-
Secure methods for storing access details (without exposing them publicly)
-
Coordinated planning to reduce the chance of permanent loss
Crypto is one of the few asset classes where a failure to plan can result in total, permanent loss—even when heirs have every legal right to inherit.