Cryptocurrency Estate Planning: A Growing Challenge for South Africans

For South Africans building wealth in digital assets such as cryptocurrency, estate planning has become increasingly complex. According to Discovery Life data, around 70% of South Africans die without a valid Will, and even those who begin drafting one only complete the process for about 55%. With an estimated 7.8 million people using cryptocurrency platforms by mid-2025, many investors have not considered what happens to their digital assets when they pass away.

'Many people spend years building wealth in digital assets but never stop to ask what would happen if they died tomorrow,' says Harry Joffe, Head of Legal Services at Discovery Life. Unlike traditional financial institutions, there is no customer service department that can assist with resetting a password or granting access to a crypto wallet.

With private keys, passwords, and two-factor authentication required for digital assets, executors may struggle to access them after the owner's death. To mitigate this risk, Joffe advises including digital assets in one's Will, storing passwords securely outside of it, and providing clear instructions for accessing these assets.

Joffe also stresses the importance of choosing an experienced executor who can manage complex digital estates, particularly those with international assets or cryptocurrency investments. Finally, he notes that digital assets are subject to tax implications, such as estate duty and capital gains tax, which must be considered in one's estate plan.