Your Tangem wallet holds crypto that’s meaningful to your family’s future. Your seed phrase (or Tangem cards) sit somewhere safe. You’ve never told your spouse or kids exactly where they are or how to use them. And you’ve quietly realised that if something happens to you tomorrow, your crypto might as well not exist because they can’t access any of it.
Crypto Estate Planning NZ
This is the practical framework for solving that. Crypto estate planning NZ how to pass down Bitcoin legally isn’t only about writing “my Bitcoin goes to my daughter” in your will. It requires three things working together: a legally valid will, a recoverable custody plan for your seed phrase or cards, and a designated person who both understands what to do AND has the technical capability to execute it.
The short answer what NZ crypto estate planning actually requires
Passing down Bitcoin (or any crypto) in New Zealand requires three things working together: (1) a legally valid will that specifically references your crypto assets, (2) a secure but recoverable custody plan for your seed phrase or hardware wallet cards, and (3) a designated executor or family member who knows what to do and can technically execute the transfer.
Missing any of the three, and your crypto is effectively lost after your death. The wallet balance still exists on the blockchain but no one can access it.
Why crypto is genuinely different from traditional inheritance
Traditional inheritance works because assets are held by institutions banks, share registries, land titles offices, insurance companies. These institutions maintain records independent of the deceased. When someone dies, their executor contacts the institution, provides probate documents, and the assets are transferred.
Self-custody crypto has no such institution. If your seed phrase or Tangem cards can’t be recovered after your death, no bank, no exchange, no probate court, and no government agency can recover your assets. The wealth exists on the blockchain but it’s functionally destroyed. Estimates suggest 20% of all Bitcoin ever mined is permanently lost, largely to deaths without inheritance planning.
The self-custody trade-off
Self-custody gives you complete control while you’re alive. That’s genuinely valuable no exchange freezes, no bank refusals, no institutional intermediary. But it also means you carry complete responsibility for what happens after. There’s no support desk to call, no forgotten-password recovery, no “prove your identity and we’ll help you” fallback.
What NZ’s IRD sees vs what your executor can access
The IRD may know you own crypto (through exchange data-sharing agreements). Your bank records may show fiat purchases of crypto. Your executor can see these records but that visibility doesn’t grant technical access. Knowing you have crypto and being able to move it are two entirely different problems.
NZ succession law what applies to your crypto
New Zealand’s succession law treats crypto as property under your estate. Your will controls its distribution to beneficiaries. Without a will, the Administration Act 1969 distributes assets according to intestacy rules typically your spouse and children in defined proportions. Your crypto is legally covered by NZ law; the challenge is practical access.
The role of your executor
Your executor has legal authority granted by the will and probate court to distribute your assets. But legal authority doesn’t confer technical capability an executor who can’t recover a seed phrase or operate a hardware wallet is stuck, regardless of what powers your will grants them. This is the single biggest structural weakness in most NZ crypto estates.
The Family Protection Act 1955
Your spouse, children, and certain other family members can potentially claim provision from your estate under the Family Protection Act 1955 if they believe your will inadequately provides for them. This applies to crypto assets like any other property. If you’re planning to leave your crypto entirely to one person while excluding others, discuss this with your estate lawyer the Act may override your intentions.
Testamentary trusts for crypto
For substantial crypto holdings, a testamentary trust created by your will can hold crypto for the benefit of minors, family members with special circumstances, or beneficiaries you want to receive assets gradually rather than in a lump sum. Setting up a testamentary trust that actually works for crypto (with clear technical instructions for the trustee) requires specialist legal advice.
The seed phrase custody problem the hard part
Your will can legally direct crypto to beneficiaries, but only if your seed phrase or hardware wallet can actually be recovered. This creates a security paradox: seed phrases must be secure enough that no one steals them during your lifetime, but findable enough that someone recovers them after your death.
Four common solutions each have legitimate trade-offs:
Solution 1: Full disclosure to spouse or executor
Tell your spouse or trusted executor where the seed phrase is and how to use it. Simplest solution; works reliably. Risks: family dynamics changes (divorce, disputes), one person having complete control while you’re alive, potential coercion if someone learns they know the seed.
Solution 2: Physical vault with instructions in your will
Store your seed phrase in a bank safe deposit box or a home safe. Reference its location and access procedure in your will. Only accessible after probate is granted. Risks: probate takes 3-6+ months (long time to leave crypto inaccessible), executor still needs technical knowledge, bank access requires documentation.
Solution 3: Shamir Secret Sharing (SSS) or Multisig
Split your seed phrase across multiple trusted parties (e.g., 3 of 5 shares needed to recover). Or use a multisig wallet requiring multiple signatures. Best for large holdings. Risks: technical complexity, requires all custodians to remain alive and cooperative, requires clear documentation of the recovery process.
Solution 4: Professional crypto estate service
Third-party services that hold your seed phrase or cards under release conditions triggered by death certificate. Growing category. Risks: trust in the service provider, ongoing fees, service provider longevity, jurisdiction concerns.
Comparison of the four solutions
| Solution | Security During Life | Ease of Recovery | Cost | Best For |
|---|---|---|---|---|
| Full disclosure to spouse | Medium | High | Free | Strong family trust, moderate holdings |
| Physical vault + will | High | Medium (delay) | Low | Solo owners, medium holdings |
| Shamir/Multisig | Very High | Complex | Low-Medium | Large holdings, technical family |
| Professional estate service | High | High | Ongoing fee | Large holdings, non-technical family |
How Tangem specifically handles crypto inheritance
Tangem’s card-based hardware wallets handle inheritance differently from traditional seed-phrase wallets. Because Tangem stores the private key on the physical card itself (with optional backup cards purchased at wallet setup), inheritance becomes primarily a physical asset transfer problem pass the cards and the access PIN to the beneficiary, and they have full control.
This is genuinely simpler than seed-phrase inheritance for many families.
Backup cards as inheritance strategy
Tangem wallets come as 2-card or 3-card sets. The typical inheritance strategy:
- Card 1: your daily-use card, kept with you
- Card 2: sealed and stored in a location known only to you (home safe, bank safe deposit)
- Card 3: sealed and stored with your executor OR referenced in your will’s location instructions
After your death, your beneficiary receives Card 2 or 3 (whichever is designated). They know the PIN through your will’s instructions. They import the card into their own device, and full access transfers cleanly. No seed phrase to lose or steal.
The PIN problem passing PINs without exposing them during life
Your Tangem PIN protects the card during your lifetime. But your beneficiary needs the PIN to actually use the inherited card. Solutions:
- Include the PIN in a sealed envelope stored with your will and opened only by your executor
- Use a professional will-storage service (like Public Trust or a family lawyer) that stores sealed documents until needed
- Document the PIN retrieval procedure clearly in your will’s schedule of assets
Never write the PIN directly on the card or in obvious storage. The PIN is worthless without the card, but the card is worthless without the PIN.
Compared to seed-phrase wallet inheritance
Tangem’s card-based approach reduces two major seed-phrase risks: transcription errors (a beneficiary miscopying a 24-word phrase and losing everything) and partial recovery (finding some words but not others). With Tangem, either the card works or it doesn’t no partial-recovery scenarios.
Building your crypto estate plan the practical checklist
A working NZ crypto estate plan requires eight documented items. Skip any one, and your beneficiaries face potentially unsolvable access problems:
- Written will that specifically references your crypto assets by category (Bitcoin, Ethereum, etc.) not just “digital assets”
- Named executor with (or connected to) technical capability
- Inventory of all crypto assets — which wallets, which exchanges, approximate balances
- Seed phrase or card custody plan with documented recovery procedure
- PIN and access credential documentation — stored separately from the cards themselves
- Beneficiary designations with clear division instructions (percentages or absolute amounts)
- Step-by-step technical transfer instructions written for a non-technical executor to follow
- Regular review — annually or after any major life event (marriage, divorce, new children, new wallets)
Missing item 7 is the most common failure. Executors often have legal authority but no clue how to actually move crypto instructions that a competent non-crypto person can follow are what makes the plan actually work.
The executor question who actually receives your crypto
Your executor has the legal authority to distribute your crypto, but usually lacks the technical capability to execute the transfers. Most successful NZ crypto estates involve one of three arrangements:
Option 1: Technically capable family member as co-executor
Name a technically-comfortable family member (adult child, sibling) as co-executor alongside your traditional executor (lawyer, family friend). The technical co-executor handles crypto; the traditional executor handles fiat assets, real estate, and probate paperwork.
Option 2: Professional crypto estate service
Growing category of specialist services (typically internationally-based) that assist with crypto transfer under estate authority. Costs range from setup fees to percentage of assets transferred.
Option 3: Detailed written instructions
Write step-by-step technical instructions detailed enough that a non-crypto executor can follow them exactly. Include screenshots, specific button presses, and expected outcomes at each step. Test the instructions with a small amount of crypto before finalising. This works surprisingly well when done thoroughly.
Tax implications for NZ crypto inheritance
Under current NZ law, inherited crypto isn’t immediately taxable to the beneficiary at the moment of inheritance NZ has no inheritance tax (unlike the UK or some US states). However, when the beneficiary later disposes of the crypto, standard NZ crypto tax rules apply based on the market value at the date of inheritance.
The cost basis at inheritance
The beneficiary’s cost basis is the NZD market value on the date of your death. If your Bitcoin was worth NZ$100,000 at your death and later sold for NZ$150,000, the beneficiary’s taxable gain is NZ$50,000 (not the full NZ$150,000 they received). This is significantly more favourable than inheriting stocks in some other jurisdictions.
What the beneficiary owes when they eventually sell
Your beneficiary faces the same NZ crypto tax rules any holder faces see our Crypto Tax in New Zealand guide for Tangem Users for the full framework. Key point: the tax event happens when they sell, not when they inherit.
Common mistakes NZ Tangem users make
Four patterns cause most crypto inheritance failures in New Zealand:
- No documentation of assets: family doesn’t even know you own crypto, let alone how much or where
- Seed phrase or cards inaccessible: secured so thoroughly that legitimate recovery becomes impossible
- Executor without technical capability AND without clear instructions: legal authority alone doesn’t move crypto
- No update after major life events: divorce, remarriage, new children, moved crypto to new wallets
Any single failure can destroy the entire inheritance. All four combined make crypto estate planning essentially theatre.
FAQs
Do I need to include my Bitcoin in my will?
Yes. Without specific reference in your will, your crypto still legally passes under intestacy rules but with much more difficulty. A will that specifically references crypto assets (by wallet type and approximate holdings) makes executor authority clearer and reduces disputes.
What happens to my crypto if I die without a will in NZ?
Distribution follows the Administration Act 1969 intestacy rules typically your spouse and children in defined proportions. But without documented seed phrase or card recovery information, the crypto may be legally allocated but practically inaccessible. Intestacy is genuinely worse for crypto than for traditional assets.
Can I put crypto in a family trust in NZ?
Yes, but requires specialist legal advice. Living trusts and testamentary trusts can both hold crypto but the trustees need clear instructions and technical capability. Trust structures work well for large holdings that benefit from long-term controlled distribution.
Is my seed phrase private information or an estate asset?
Both. During your life, it’s private information you control. After your death, its content (the crypto it accesses) becomes an estate asset but the physical seed phrase itself remains sensitive. Store and transfer it with the security appropriate to what it accesses.
What if my beneficiary is a minor?
You typically need a testamentary trust or appointed guardian to hold the crypto until they reach the age you specify (usually 18 or 21+ in NZ). Direct transfer to a minor isn’t legally clean and can create tax complications. Discuss with your estate lawyer if any of your beneficiaries are children.
Does NZ have inheritance tax on crypto?
No. New Zealand has no inheritance tax. Your beneficiaries don’t owe tax at the moment of inheritance. They will owe capital gains tax on future disposals, calculated from the market value at inheritance date.
Should I tell my spouse my seed phrase now?
Depends on your specific situation and relationship dynamics. Full disclosure to a trusted spouse is genuinely the simplest solution but consider whether family circumstances make that appropriate. Sealed instructions accessible only after death is a middle-ground approach that preserves lifetime privacy while ensuring after-death recovery.
