Inheritance of Crypto Without a Will: Guide to Intestate Succession

Intestate succession (without a will) refers to inheritance that follows the legal order established in the Civil Code when the deceased did not leave a will. The presence of cryptocurrencies adds layers of complexity to this process.

The Order of Heirs in Intestate Succession (Civil Code)

1. Children and descendants (in equal parts).
2. Parents and ascendants (if there are no children).
3. Surviving spouse (with variable rights depending on the existence of other heirs).
4. Siblings and their descendants.
5. Collateral relatives up to the 4th degree.
6. State/Autonomous Communities (if there are no heirs).

Important: The spouse does not inherit as a universal heir in intestate succession; their rights depend on the coexistence with children or ascendants.

Step 1: Locate the Deceased's Cryptocurrencies

The biggest challenge in crypto inheritances without a will is finding the digital assets. Typical steps include:

Search in Centralized Exchanges

• Check the deceased's email for communications from exchanges (Binance, Coinbase, Kraken, ByBit, etc.).
• Attempt to locate accounts using the deceased's NIF/NIE directly on the exchanges.
• Major exchanges have specific processes for account recovery in case of death.

Search in Hardware Wallets

• Look through drawers, safes, and documents of the deceased for devices like Ledger, Trezor, Keystone, or other hardware wallets.
• The seed phrase (12-24 words) may be written on paper or metal.
• Without the seed, access to the funds is impossible.

Search in Software Wallets

• Check for installations of MetaMask, Exodus, Trust Wallet on the deceased's devices.
• Look for passwords in password managers (Bitwarden, 1Password) that the heir may have access to.

Step 2: Declaration of Heirs

In intestate succession, the following is required:

1. Notarial declaration of intestate heirs: The notary certifies who the legal heirs are.
2. Inventory of assets: Include all located cryptocurrencies with their value as of the date of death.

Valuation for the inventory: Market price of each cryptocurrency on the date of death. Use CoinMarketCap or the closing price of the main exchange.

Step 3: Inheritance and Gift Tax (ISD)

Each heir is taxed under the ISD for the portion of the inheritance they receive:

• Individual taxable base: Value of the legacy received by that heir.
• Rate: Varies by Autonomous Community (0% in Andalusia/Madrid for direct inheritances, up to 34% in some regions).

For cryptocurrencies: They are included in the inventory at their market value.

The ISD must be filed within 6 months from the date of death (extendable by another 6 months).

Step 4: Division of the Inheritance

With multiple heirs (e.g., 3 children), the inheritance must be divided:

• Option 1: One heir keeps the crypto, and the others receive other assets of equivalent value.
• Option 2: The crypto is sold, and the money is distributed.
• Option 3: The crypto is divided (each child receives 1/3).

Dividing the crypto: Centralized exchanges allow transfers to the heirs' accounts once the inheritance is verified.

Step 5: Heir's Income Tax (IRPF) Upon Selling

Once the heir possesses the crypto:

• Acquisition cost = value declared in the ISD.
• Upon selling → Capital Gains Tax (GPO): difference between the sale price and the ISD value.

Example: You inherit BTC valued at €50,000 in the ISD and sell it years later for €80,000 → GPO of €30,000.

The Critical Case: Unlocated Crypto and False Omission

If the heirs fail to locate all the crypto and the AEAT discovers it later (through exchange reports under DAC8):

• Serious infraction for concealing inherited assets.
• The heir who should have declared it may be sanctioned.
• The undeclared ISD may generate debt with surcharges and interest.

Obligation: If you suspect the deceased had digital assets you did not find, you must conduct all reasonable investigations before signing the inheritance declaration.

Hiring a Crypto Recovery Specialist

There are specialized services for:

• Forensic analysis of the deceased's devices.
• Searching for seeds in papers, images, emails.
• Recovering wallets with forgotten passwords.

If you hire this service and recover crypto → the cost of the service may be considered an inheritance expense (deductible in the ISD as an inheritance administration expense).

Summary Table of the Intestate Process with Crypto

Updated: April 2026 | Fiscal Year: 2025