Cryptocurrency in an Ontario Estate: What Executors Need to Know

If the person you're settling an estate for owned Bitcoin, Ethereum, or other cryptocurrency, you're dealing with an asset class that doesn't behave like anything else in the estate. There's no bank branch to call, no statement mailed to the house, and no customer service line that can simply hand assets over once you show a death certificate.

Cryptocurrency is still property, and it still has to be found, valued, and distributed as part of the estate. But the practical mechanics — access, security, and proof of ownership — are genuinely different from a chequing account or a mutual fund, and an estate trustee who doesn't understand that difference can lose the asset entirely.

This article walks through what an Ontario executor needs to know before touching a deceased person's crypto holdings.

Why Cryptocurrency Doesn't Work Like Other Estate Assets

A bank knows who its account holders are and has a legal process for releasing funds to an estate trustee once probate documents (where required) are provided. Cryptocurrency exchanges may have similar processes, but a lot of crypto isn't held on an exchange at all.

Many holders keep some or all of their cryptocurrency in a "self-custody" wallet — software or hardware that they alone control, secured by a private key or a recovery phrase ("seed phrase"). Nobody — not the executor, not a court — can access that wallet without the key. There is no password reset. If the private key is lost, the cryptocurrency is generally lost permanently, regardless of what the will says. Find the access information first, and treat it as irreplaceable.

Step 1: Confirm the Cryptocurrency Exists and Where It's Held

Before you can do anything else, you need to establish what the deceased owned and where it's stored. Common starting points include:

• Exchange accounts — emails from platforms, saved browser logins, or bank/credit card statements showing transfers to a named exchange
• Hardware wallets — physical devices (often USB-like) that store private keys offline, sometimes found among the deceased's belongings
• Software wallets — apps on a phone or computer, or browser extensions
• Written records — seed phrases and passwords sometimes written down with other important papers or stored in a password manager
• Tax records — past filings may reference specific platforms if the deceased reported crypto transactions

If nothing turns up but you have reason to believe cryptocurrency exists, a methodical review of devices, email, and financial records is usually the only path forward — see our companion article on locating online accounts when there's no list.

Step 2: Secure Access Before Doing Anything Else

Once you've located a wallet or exchange account, securing access — without triggering a loss — is the priority.

• Don't guess repeatedly at passwords or PINs. Many wallets permanently wipe themselves after a set number of failed attempts, a security feature that can destroy the asset if an executor experiments carelessly.
• Don't move funds until you understand the wallet. Sending cryptocurrency to the wrong address, or the wrong network, generally cannot be reversed.
• Store any private keys or seed phrases securely — on paper or another offline medium, not photographed or emailed, kept somewhere only the executor can reach.
• Get help early if the wallet is complex. Beyond a straightforward exchange account, it's often worth involving the estate's lawyer before attempting access.

Step 3: Value the Cryptocurrency for the Estate

Cryptocurrency forms part of the value of the estate, the same as any other asset, and needs to be accounted for:

• Valuation date. Estate assets are generally valued as of the date of death. Cryptocurrency prices can swing significantly day to day, so record the value as of that specific date with dated supporting documentation.
• Tax treatment. A deceased person's capital property, including cryptocurrency, is generally deemed disposed of at fair market value immediately before death, which can trigger a reportable gain on the final tax return even though nothing was actually sold — worth discussing with the estate's accountant.
• Estate Administration Tax. In Ontario, the estate's value — cryptocurrency included — factors into Estate Administration Tax when an estate certificate is applied for, and must be reported on the Estate Information Return filed with the Ministry of Finance.

Step 4: Distribute According to the Will (or Intestacy Rules)

Once secured and valued, cryptocurrency is distributed like any other estate asset — under the will, or under Ontario's intestacy rules if there is no will. This usually means either transferring the cryptocurrency to a beneficiary's own wallet, or selling it and distributing the proceeds, depending on what the will directs. As with any fiduciary duty, the estate trustee should keep clear records of how and when any transfer or sale happened.

A Quick Checklist for Executors

• [ ] Search devices, email, and financial records for signs of cryptocurrency holdings
• [ ] Identify whether assets sit on an exchange, in a hardware wallet, or in a software wallet
• [ ] Secure any private keys or seed phrases without attempting risky guesswork
• [ ] Record the value of each holding as of the date of death
• [ ] Loop in the estate's lawyer and accountant on tax and valuation questions
• [ ] Distribute or liquidate according to the will or intestacy rules, with records kept throughout

Frequently asked questions