How to Calculate Crypto Estate Plan

What is Crypto Estate Plan?

The Crypto Estate Planning Calculator helps estimate the value of cryptocurrency holdings that would be passed to heirs, calculates potential estate tax liability, and highlights the importance of secure key management and succession planning for digital assets.

Formula

Taxable Estate Value = Crypto FMV at Death - Estate Tax Exemption; Estate Tax = Taxable Value × Rate (up to 40%)

FMV: Fair Market Value ($) — Total crypto portfolio value at date of death
EX: Estate Exemption ($) — Federal estate tax exemption amount
TR: Tax Rate (%) — Marginal estate tax rate (up to 40%)
CB: Stepped-Up Basis ($) — New cost basis for heirs equal to FMV at death

Step-by-Step Guide

1Enter total cryptocurrency holdings across all wallets and exchanges
2Apply the current estate tax exemption ($13.61M per person in 2025)
3Calculate estate tax on crypto value exceeding the exemption at graduated rates (18-40%)
4Plan for key management — if private keys are lost, heirs cannot access the funds

Worked Examples

Input

100 BTC at $65,000 = $6.5M, single person, no other estate

Result

Below $13.61M exemption — no federal estate tax. But heirs need access to wallet keys.

Input

500 BTC at $65,000 = $32.5M, married couple, exemption $27.22M

Result

Taxable estate = $5.28M, Estimated tax = $5.28M × 40% = $2.1M

Common Mistakes to Avoid

✕Not documenting wallet addresses and private keys in a secure way for heirs
✕Forgetting that crypto gets a stepped-up cost basis at death — no capital gains tax on appreciation
✕Leaving crypto on exchanges without named beneficiaries or transfer-on-death designations

Frequently Asked Questions

What happens to crypto when someone dies without a plan?

If private keys are not documented and accessible, the crypto is permanently lost. Unlike bank accounts, no court order can recover crypto from a blockchain. An estimated 3-4 million BTC are believed permanently lost.

Do heirs owe capital gains tax on inherited crypto?

No — inherited crypto receives a stepped-up cost basis to the fair market value at date of death. All prior capital gains are eliminated. This makes crypto inheritance tax-advantaged compared to selling during life.

How should I store private keys for estate planning?

Use a combination of hardware wallets, seed phrase backups in fireproof safes, and multisig arrangements. Some people use estate planning services like Casa or Unchained that support inheritance protocols.