Why it matters
Probate is slow (often 6-18 months), public (filings are court records), and expensive (legal fees and court costs). For bitcoin, probate also introduces technical risks: heirs may gain legal authority but lack technical access, or the estate may need to liquidate holdings to pay costs.
How it works
Upon death, the executor files the will with a probate court. The court validates the will, authorizes the executor to act, and oversees asset inventory and distribution. Creditors are paid, taxes settled, and remaining assets distributed to heirs. Throughout, the process is a matter of public record.
Example
A holder dies with 10 BTC in self-custody. The executor must petition the court for authority to act, inventory the bitcoin as estate property, determine its value, pay any estate taxes, and finally distribute to heirs. This takes 14 months and costs $15,000 in legal fees. The entire process is public record.
Related terms
- Bitcoin inheritance
- Beneficiary designation
- Bitcoin trust
- Bitcoin executor
- Fiduciary access
- Heir access
- Inheritance failure modes
