Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Digital Asset Inheritance is Now Mainstream
Digital Assets | Aug 27, 2025
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Fintechs and Financial Institutions Need to Formalize Digital Estate Planning to Protect Families and Clients
Digital lives now include high value property and high emotion content. Crypto's digital assets and tokens sit next to family photos in the cloud and personal emails, but the rules for accessing them after someone's death (or incapacity) vary widely between platforms and jurisdictions.
See: Fidelity Report Insights on Digital Assets in 2025
In Canada, Bitcoin ownership was about 10% in 2023 per the Bank of Canada’s Canadian Bitcoin ownership in 2023, while the CSA 2024 Investor Index shows that 33% of investors under 35 years old hold crypto assets. Growing exposure combined with the Canada Revenue Agency’s disposition at death requirement, makes digital estate planning a growing mainstream need instead of a niche topic that could get buried (no pun intended).
Canadian Laws and CRA Rules on Digital Inheritance
Four provinces and territories in Canada have passed laws that give executors and trustees specific rights to access digital assets.
- Saskatchewan’s Fiduciaries Access to Digital Information Act came into force on June 29, 2020.
- Prince Edward Island’s Access to Digital Assets Act took effect in 2022.
- New Brunswick passed the Fiduciaries Access to Digital Assets Act in December 2022.
- Yukon enacted the Fiduciaries Access to Digital Assets Act on November 15, 2023.
KPMG notes that these four are the only Canadian jurisdictions with dedicated statutes so far with Alberta adding digital accounts to executor duties through other legislation. Their overview of Canadian gaps notes that most provinces still lack clear rules, a challenge also underlined in the ALRI’s analysis of digital estate law.
See: The Complexities of Auditing Digital Assets
The Canada Revenue Agency states that, “a person who died is considered to have disposed of all the property they own right before death.” That disposition also applies to crypto which is considered a capital property, with gains included on the final return. Executors and advisors need procedures that capture wallet inventories, cost base evidence, and transaction records. See CRA’s guidance on capital gains at death and its crypto asset tax page.
Practical Steps for Digital Inheritance
Big platforms provide inheritance tools that users must enable to access them. Apple’s Legacy Contact and Digital Legacy let a named person request access using an access key plus a death certificate, while Google’s Inactive Account Manager lets users direct data sharing or deletion after a chosen period of inactivity. For custody and to exchange accounts, some platforms offer support such as Coinbase deceased account handling and Binance inheritance appeal show families how to proceed.
Practical client checklist: Confirm a complete inventory of digital property and accounts, enable Apple Legacy Contact or Google Inactive Account Manager where applicable, include digital assets and directions in the will or memorandum, and securely record wallet locations and recovery material.
Read: Trusty Raises $1M to Modernize Estate Planning
Fintechs and advisors should help clients list all their digital accounts, turn on inheritance tools offered by platforms, and record their wishes in estate documents. Advisors can use checklists that follow provincial laws and make sure keys and login details are stored securely. Putting these steps in place builds trust with clients and prevents problems when someone dies or becomes unable to manage their accounts.
Cross-border Compliance in Digital Estate planning
Globally, the tax treatment of digital assets after death remains inconsistent. The UK, US, and Canada all vary in their approach, which can complicate planning for cross-border families. An in-depth analysis of inheritance tax for digital assets across jurisdictions highlights these differences.
For estates with US connections as of 2021, a total of 47 states have enacted laws based on the Uniform Law Commission model, see Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). If users don't enable official legacy features or provide clear authority, custodians could refuse access based on terms of service, forcing families to obtain court orders from foreign jurisdictions.
Outlook
Digital estate planning has moved from fringe cases to everyday expectations. The legal tools exist, platform features are available, and client demand is growing. NCFA members should operationalize digital inheritance today to create and protect real value for families while improving compliance and client experience.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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