California Crypto Estate Planning: How to Pass Cryptocurrency to Your Heirs

Ryan Stenzel
Feb 16
1 min read

Can You Name a Beneficiary for Your Cryptocurrency?

Many Californians assume cryptocurrency can be passed to heirs using payable-on-death (POD) or transfer-on-death (TOD) designations, similar to a bank or brokerage account. For most crypto held on centralized exchanges, this is not possible.

Why POD/TOD Does Not Apply to Cryptocurrency

California law allows POD and TOD for traditional accounts, enabling assets to bypass probate. However, major exchanges—such as Coinbase, Kraken, and Gemini—do not offer built-in beneficiary designations.

Crypto held on these platforms generally becomes part of the estate, requiring heirs to provide legal documentation and navigate the exchange’s claims process.

How to Protect Your Digital Assets in California

Effective California crypto estate planning ensures your assets pass smoothly. Key strategies include:

Revocable Trusts: Place cryptocurrency in a trust to avoid probate.
Explicit Instructions in Wills or Trusts: Clearly identify digital assets and beneficiaries.
RUFADAA Authorization: Give fiduciaries legal authority to access and manage digital accounts.
Secure Self-Custody Planning: Document access for hardware wallets or other non-custodial crypto.

Bottom Line

Without careful planning, cryptocurrency may be delayed, frozen, or lost during probate. California law gives executors and trustees tools to manage digital assets, but there is currently no automatic POD or TOD for most exchange-held crypto.