To write a digital-asset letter of instruction, build a private, non-public document that lists each wallet, exchange, and custodian, names who should act, and points to where access materials are stored, without ever writing a seed phrase or private key into it. Work top-down: people first, then asset inventory, then access pointers, then warnings. Keep it current and store it where a trusted fiduciary can reach it.
What a Letter of Instruction Is (and Is Not)
A digital-asset letter of instruction is the operational companion to your will or trust. The legal documents say who inherits; this letter says where the assets are and how a fiduciary reaches them. It is usually guidance rather than a binding legal instrument, so it supports your plan rather than replacing it. For the definition and where it fits, see what is a digital asset letter of instruction. This page is the fill-in structure: the template and the order to write it in.
One rule sits above all others. Never put a live seed phrase, private key, exchange password, or 2FA seed into the letter itself. The letter is a map to your assets, and a map that contains the keys becomes a single point of catastrophic failure if it is ever read by the wrong person.
Step-by-Step: How to Build the Letter
- Write a short cover statement. State that this is a non-binding letter of instruction meant to help your fiduciary administer digital assets, that it is subordinate to your will and trust, and the date you last updated it.
- Name the people. List the executor or trustee, any successor, and the advisors, estate counsel, CPA, and custody contacts who can help. Give names, roles, and how to reach them.
- Inventory the assets by location, not by amount. For each holding, record the type (self-custody wallet, exchange account, Cryptocurrency qualified custodians have emerged to serve institutional requirements. Qualified custody may be required for register">qualified custodian, entity-held), the platform or device, and the approximate asset categories. Avoid live balances, which go stale fast.
- Record ownership and entity notes. Flag anything held inside an LLC or trust so the fiduciary knows the legal owner is the entity, not you personally.
- Point to access materials, do not copy them. Describe where recovery sheets, hardware devices, and any password manager live, and how the fiduciary obtains the credentials to reach them through a secure, separate process.
- Add safety warnings. Note that transfers are irreversible, that scammers target estates, and that the fiduciary should verify addresses and slow down before moving anything.
- Sign, date, and set a review cadence. Update whenever wallets, custodians, people, or devices change.
Section-by-Section Template Structure
Use these headings as the skeleton of the document. Fill each with your own facts; leave the secrets out.
- Cover and purpose, what this is, what it is not, last-updated date.
- Key people, executor/trustee, successors, advisors, counsel, CPA, custody contacts.
- Asset inventory, one row per wallet/account/custodian: type, platform/device, asset categories, entity owner if any.
- Where access lives, physical and digital locations of recovery materials and devices, and the secure path to the credentials (not the credentials).
- Procedures and cautions, irreversibility, phishing, address verification, "go slow" guidance.
- Documents this supports, pointers to the will, trust, and LLC operating agreement that actually control ownership.
For the secrets the letter points to, plan the storage separately using seed phrase storage for estate planning, and confirm the legal and operational layers line up with the digital asset estate planning checklist. The letter is one layer in a full plan; see the crypto estate planning hub for the rest.
Related Questions
Can I list my seed phrase in the letter if I store the letter in a safe?
No. Keep the secret material out of the letter entirely, even in a safe. A letter is meant to be findable and updatable, which is the opposite of how a seed phrase should be handled. Document the path to the secret through a secure, separate method designed with qualified professionals, so a single document is never enough to drain the assets.
How is this different from a will?
A will is a legal instrument that directs who inherits and is generally validated through probate. A letter of instruction is operational guidance that helps the fiduciary find and administer assets; it usually does not control ownership. Compare the two vehicles in crypto will vs crypto trust, and treat the letter as support for whichever you choose.
How often should I rewrite it?
Whenever something it references changes, a new wallet, a closed exchange account, a new custodian, a different trustee, or a moved device. A letter that drifts out of date can send a fiduciary to a wallet that no longer holds anything, or omit the account that holds the most.
Sources
- IRS: Digital assets, https://www.irs.gov/filing/digital-assets
Compliance Note
This article is for general educational purposes and is not legal, tax, custody, or security advice. A digital-asset letter of instruction does not transfer legal authority and does not replace a will, trust, or entity documents. Estate and trust drafting is the practice of law; Digital Ascension Group coordinates with qualified estate attorneys, tax professionals, and security specialists rather than drafting documents itself. Investment advisory services are provided through DAG Wealth. Never store live private keys or seed phrases in this document. Review any template with qualified counsel before use. Registration does not imply a certain level of skill or training.