Crypto estate planning: two mistakes to avoid

Full transcript

0:10 Hey, I’m Max Dilendorf. I’m a New York-based attorney, and I work with clients across the U.S. and internationally on crypto estate planning and wealth protection.

0:22 As attorney, I’ve been focused on digital assets and crypto law since 2017.

0:29 Over the years, I’ve handled some of the most challenging cases involving crypto custody disputes – often triggered by cyberattacks and account takeovers.

0:41 I’ve also helped clients rebuild their estate plans and asset protection strategies after those events. And if there’s one thing I’ve learned, it’s this: without the right legal structure, your crypto is exposed—especially when it comes to legacy planning. Today, I want to talk about two of the biggest mistakes I see people make when it comes to crypto and estate planning.

1:08 Mistake number one: keeping assets on centralized exchanges. I get it -exchanges are convenient.

1:16 But exchanges are not designed for long-term storage, and definitely not for estate planning or asset protection. Take a close look at the user agreements for most U.S.-based exchanges. You’ll find they all say the same thing: if your account gets hacked, SIM-swapped, or compromised—the exchange isn’t liable. The risk of loss is entirely on you.

1:43 When you create an account, you’re agreeing to “as-is” terms of service. No guarantees.

1:51 No insurance. No obligation to help your heirs recover your funds if something happens to you.

1:58 Crypto Theft in 2025: The Alarming Numbers In fact, in its 2024 report, the FBI found that the Americans lost over $5.6 billion to crypto-related cybercrime.

2:08 In 2025, that number could exceed $7 or $8 billion.

2:13 And just last week—on June 19, 2025—it was confirmed that over 16 billion passwords from Apple, Facebook, Google, and other platforms were leaked online. That’s not just a privacy issue—it’s a major security risk for crypto holders who reuse credentials across platforms.

2:36 With collapses like FTX still fresh in memory, it’s clear: if you pass away and your crypto is sitting on an exchange, your family might not be able to access it—even if they have the right legal documents. Mistake number two: relying on a basic will to pass down your crypto. Here’s the problem: wills become public during probate. That means information about your wallets and holdings could be exposed—to creditors, hackers, or anyone who knows where to look. Second, probate can drag on for 6 to 24 months.

3:15 Meanwhile, your crypto could be sitting idle, vulnerable to volatility, poor key management, or total loss due to cyberattacks. Better Approach: Revocable Trust + Multi-Sig Wallet So what’s the better approach?

3:24 For most clients, I recommend setting up a revocable trust.

3:28 It’s private, avoids probate, and keeps things simple. You stay in control as trustee while you’re alive, and you name someone to step in if something happens.

3:40 And here’s where crypto-specific planning comes in—you can pair the trust with a multi-signature wallet. You hold one key, your trustee holds another, and maybe a third is by a professional custodian. That way, no single point of failure, and your estate plan stays secure. For Larger Estates: Offshore Trusts and Swiss Custody Now, for larger estates or clients with more complex goals, we also explore irrevocable trusts—either domestic or offshore.

4:16 These might involve setting up Swiss custody, Liechtenstein foundations, or Cook Islands structures. In fact, secure crypto custody in the US can cost up to five times more than comparable solutions in Switzerland.

4:33 Bottom line: if you’ve accumulated substantial crypto wealth, an exchange account and a simple will are not enough.

4:41 If you found this valuable, consider subscribing. We’ll continue exploring advanced strategies to help you protect and preserve your digital assets I’m Max Dilendorf, and I’ll see you in the next episode.

A transcript of the recording, so it reads as speech rather than as prose. It explains the law in general terms and is not advice on your own situation, which turns on facts this video cannot know.