Why it matters
Probate is slow, public, and expensive. Beneficiary designations allow bitcoin to transfer directly to named heirs, often within days rather than months. This is one of the clearest advantages of custodial solutions over self-custody for inheritance planning.
How it works
The account holder names one or more beneficiaries through the custody provider's documentation. Upon verified death, the custodian transfers holdings to the designated beneficiaries according to the specified allocation. The transfer happens outside the probate process, governed by the beneficiary designation rather than the will.
Example
A holder names their spouse as primary beneficiary (100%) and two children as contingent beneficiaries (50% each). If the spouse predeceases them, the children inherit directly. The custody provider processes the transfer upon receiving a death certificate and identity verification.
Related terms
- Bitcoin inheritance
- Probate
- Bitcoin trust
- Heir access
- Fiduciary access
- Incapacity planning
- Bitcoin executor
