Virtual assets, investors are increasing… preparations for asset transfer such as inheritance procedures remain insufficient

Holders of virtual assets (cryptocurrencies) such as Bitcoin (BTC) and Ethereum (ETH) are increasing, and experts point out that cases are rising in which digital assets are not transferred in time during the inheritance process, causing assets to be tied up in court or permanently lost.

On the 6th (Korea time), CNBC, citing data from the National Association of Unclaimed Property Administrators (NAUPA), reported that one in seven virtual asset investors are not properly claiming assets left to them.

As interest in virtual assets grows, the importance of long-term inheritance and gifting issues related to virtual assets is being further highlighted.

Gallup and the Pew Research Center estimated that 14~17% of U.S. adults have had experience owning virtual assets in recent years. However, experts commonly point out that many holders do not include digital asset transfer procedures in wills or estate plans, or that heirs still do not know how to access accounts.

Azriel Bear, an attorney at Farrell Fritz, said, "Traditional financial assets have relatively clear inheritance procedures, but virtual assets face access-rights issues that can invalidate inheritances or pose a high risk of permanent loss."

Since last year, following the approval of spot Bitcoin exchange-traded funds (ETFs), spot Ethereum ETFs have been approved in succession, and investment in virtual assets is further expanding. Experts said, "Investing indirectly through ETFs can reduce the risk of losing actual virtual assets," but emphasized, "Preparations for inheritance by direct holders are still insufficient."

In particular, old wills often do not specify access rights to digital assets, so heirs must request separate approval from the court. Patrick Owens Buckalter, an attorney, explained, "It can take months for heirs to secure authority, and during that period they cannot sell even if market prices plunge."

Experts also cite failure to share access rights as the biggest problem. Bear said, "There have been cases where tens of millions of dollars worth of virtual assets were never passed on to heirs," and emphasized, "It is essential to leave access information, including private keys, in a separate secure manner rather than in the will."

In addition, trustees or estate executors may be unfamiliar with virtual asset trading and experience confusion. Some financial institutions even refuse to serve as trustees.

Tax issues also need to be addressed. The 2025 U.S. federal estate tax exemption is $13.99 million per individual, and substantial estate taxes may arise depending on the size. Also, when considering lifetime gifting, if the cost basis is not recorded accurately, taxation may become impossible.

Experts said, "Virtual asset inheritance is not simply a technical issue but a complex challenge involving taxes, law, and management responsibilities," and advised, "Holders should prepare a structured plan during their lifetime."