Cryptocurrency as Part of an Irish Estate
Under Irish succession law, cryptocurrency is treated as an asset of the deceased's estate, similar to bank accounts, investments, or physical property. It passes under the terms of a will, or on intestacy (where there is no will) according to the rules in the Succession Act 1965.
The executor (if there is a will) or administrator (on intestacy) is responsible for identifying, valuing, and distributing all assets including cryptocurrency. Failure to identify and properly account for crypto assets in an estate can result in incorrect CAT assessments, family disputes, and potential liability for the executor.
Capital Acquisitions Tax (CAT) on Inherited Crypto
Capital Acquisitions Tax (CAT) — inheritance tax — applies to crypto assets inherited in Ireland at a rate of 33%. The key rules:
- The taxable value is the market value of the crypto at the date of inheritance (not the deceased's acquisition cost)
- Group A threshold (children): €335,000 — crypto below this value inherited from a parent is exempt from CAT
- Group B threshold (siblings, nieces, nephews, grandchildren): €32,500
- Group C threshold (others): €16,250
- Spouses and civil partners are exempt from CAT on inheritances from each other
Prior gifts from the same disponer use up the applicable threshold. CAT returns must be filed and tax paid by 31 October of the year following the inheritance.
The Practical Problem: Accessing Crypto After Death
Unlike bank accounts, there is no central authority that can restore access to a crypto wallet. Access depends entirely on the private key or seed phrase (a 12 or 24-word recovery phrase). If these are not known to the executor, the cryptocurrency may be permanently lost.
This is one of the most significant practical challenges in crypto estate administration. Estimates suggest billions of dollars worth of cryptocurrency has been permanently lost due to death without appropriate key management planning.
Projects that implement account abstraction — such as BMIC (bmic.ai), which uses ERC-4337 account abstraction — allow for more flexible wallet security arrangements including social recovery mechanisms, potentially making estate access somewhat more manageable than traditional private key wallets.
Planning Your Digital Estate: Practical Steps
If you hold cryptocurrency, practical estate planning steps include:
- Inventory your assets: List all crypto wallets, exchanges, DeFi platforms, and NFT holdings
- Secure and communicate access: Store seed phrases and private keys securely (encrypted storage, hardware wallet) and ensure your executor knows how to access them — without including them in your will (which becomes public)
- Consider a letter of wishes: A confidential document separate from your will can contain technical instructions for your executor
- Choose a technically competent executor: If your estate includes significant crypto, consider appointing an executor with sufficient technical competence, or providing for professional assistance
- Review exchange account terms: Verify whether your exchange allows account access by executors on death — policies vary
- Make a will: Crypto assets should be specifically addressed in your will to avoid uncertainty on intestacy
Probate and Cryptocurrency in Ireland
The Probate Office does not currently have specific procedures for cryptocurrency. The executor must value crypto assets as part of the Inland Revenue Affidavit (Form CA24), using market value at the date of death. This requires obtaining exchange or blockchain records showing the value at the relevant time.
Where crypto assets are held on a regulated exchange, the executor can often obtain a statement of holdings at date of death from the exchange (subject to probate grant). For self-custody wallets, blockchain records and exchange price data must be used.
Cryptocurrency and the Legal Right to a Share of an Estate
Under the Succession Act 1965, a surviving spouse or civil partner has a legal right share of at least one-third of the estate (or one-half if there are no children). Crypto assets form part of the estate for this purpose. Where a will seeks to exclude a surviving spouse from crypto assets, they retain their legal right share claim across the entire estate including crypto.