Digital Assets in Your Will: Cryptocurrency, Accounts, and Passwords

constitute a growing category of heritable property — cryptocurrency wallets, online brokerage accounts, domain names, digital intellectual property, and platform accounts. Under Israel's Inheritance Law (1965), all transferable property owned by the deceased at the moment of death forms part of the estate. However, many platforms' terms of service restrict inheritance or account transfer, and assets without documented access credentials are effectively lost to heirs. A will that specifically identifies digital assets, their location, and access instructions ensures they are discoverable and transferable. The Law Office of Adv. & CPA Shoshi Arbib integrates digital asset planning into every comprehensive estate engagement.

What Is a Digital Estate and Why It Matters for Your Will?

Digital assets have become a significant part of personal wealth: cryptocurrency holdings, digital brokerage accounts, domain names, intellectual property in digital form, and valuable online business assets. Yet most Israelis have no plan for passing these assets to heirs — and the law has not fully caught up with the technology.

What Can Be Included in a Will

Israeli law allows a testator to bequeath any asset they own, including digital assets. However, a will must be practicable — meaning heirs must be able to access what they receive. For digital assets this requires: (1) a complete inventory of accounts and holdings, (2) access credentials (passwords, seed phrases for crypto), and (3) instructions on how to transfer or liquidate each asset.

Practical Planning Steps

  • Create a sealed inventory of all digital assets and access credentials, stored separately from the will itself (for security).
  • Instruct your executor or a trusted person on where to find the inventory.
  • For cryptocurrency, ensure seed phrases or hardware wallet access is available — without these, crypto assets are permanently lost.
  • Review the terms of service of major platforms — some accounts are non-transferable under their terms.

Can I leave cryptocurrency to my heirs in an Israeli will?

Yes — cryptocurrency and other digital assets can be bequeathed in an Israeli will like any other asset. The critical challenge is ensuring your heirs can actually access the assets after your death. Seed phrases, hardware wallet pins, and exchange account credentials must be securely stored and made available to the executor. Without access keys, cryptocurrency is effectively lost forever — the will cannot unlock a blockchain wallet.

What Can Be Included in a Will?

Israeli law allows a testator to bequeath any asset they own, including digital assets. However, a will must be practicable — meaning heirs must be able to access what they receive. For digital assets this requires: (1) a complete inventory of accounts and holdings, (2) access credentials (passwords, seed phrases for crypto), and (3) instructions on how to transfer or liquidate each asset.

Official References: Israel Ministry of Justice — Succession · Israeli Courts Administration · Israel Land Authority · National Insurance Institute of Israel · Israel Tax Authority

4 Steps to a Valid Will in Israel

  1. Initial legal consultation — Meet with a specialist inheritance attorney to review your assets, pension rights, and intentions.
  2. Choose the type of will — Handwritten, witnessed, authorised (before a judge or notary), or oral — each has distinct legal requirements under the Inheritance Law 5725-1965.
  3. Draft and sign — The will is drafted to meet statutory requirements and signed in the presence of two independent witnesses who are not beneficiaries.
  4. Deposit for safekeeping — Lodge the will with the Registrar of Inheritance Affairs for official registration and legal validity.

Shoshi Arbib Law Office — Attorney | CPA | Mediator, Netanya, Israel.

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Digital Assets in Your Will: Cryptocurrency, Accounts, and Passwords

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