Bitcoin estate planning, defined
The vocabulary of self-custody and digital asset succession, explained in plain English for holders, executors, solicitors and accountants.
Multisig
Multisig (multi-signature) is a Bitcoin wallet structure where more than one private key is required to authorise a transaction - for example, a 2-of-3 wallet needs any two of three keys to sign.
Read definitionSelf-custody
Self-custody means you hold the private keys to your own Bitcoin, so no exchange, broker or custodian can freeze, lend or lose your assets.
Read definitionSeed phrase
A seed phrase (recovery phrase) is an ordered list of 12 or 24 words that encodes the master secret for a Bitcoin wallet. Anyone with the words can rebuild the wallet and spend the funds.
Read definitionDigital asset directive
A digital asset directive is a technical document recording what digital assets exist, how they are secured, and the steps an executor and beneficiaries must follow to access them - designed to be referenced by a will or codicil.
Read definitionExecutor (digital assets)
An executor administers a deceased estate. For self-custodied Bitcoin, that means locating keys, reconstructing signing authority, valuing holdings at the date of death, and transferring or realising assets for beneficiaries.
Read definitionIn-specie transfer
An in-specie transfer moves the asset itself - the Bitcoin - to a beneficiary, instead of the estate selling it and distributing cash.
Read definitionDate-of-death valuation
A date-of-death valuation records the market value of each digital asset holding at the date of death, in Australian dollars (AUD), with the sources and methodology documented for the estate's tax and audit records.
Read definitionSMSF (self-managed super fund) crypto custody
Self-managed super fund (SMSF) crypto custody is the arrangement by which a fund holds Bitcoin in fund-owned wallets, separated from members' personal assets, with inventories, ownership evidence and valuations that support audit.
Read definitionKey ceremony
A key ceremony is the structured, documented session in which wallet keys are generated on trusted devices, backups are created, the wallet is verified, and each key is placed in its intended location.
Read definitionProbate risk (digital assets)
Probate risk for digital assets is the combined risk that a will exposes sensitive access information once it becomes a court document, or that the estate cannot access self-custodied holdings at all.
Read definition2-of-3
A 2-of-3 wallet uses three private keys and requires any two to authorise a transaction. One key alone cannot move the Bitcoin.
Read definitionNon-custodial
Non-custodial means the service provider does not hold your private keys or seed phrases and cannot sign transactions or move your Bitcoin. You remain responsible for control and safekeeping.
Read definitionCustodian
A Bitcoin custodian holds or controls the private keys needed to move Bitcoin on behalf of a client. An exchange that controls withdrawals can act as a custodian.
Read definitionHardware wallet
A hardware wallet is a physical device that stores private keys and signs transactions without exposing those keys to the connected computer. The Bitcoin is recorded on the network, not inside the device.
Read definitionPrivate key
A private key is a secret number that lets a wallet produce a digital signature authorising a Bitcoin transaction. It is not an account password and there is no password-reset service.
Read definitionDigital agent
A digital agent is a person nominated to help with digital assets or records, for example by helping an executor follow documented recovery instructions. The label alone does not give legal authority or access to Bitcoin.
Read definitionCodicil
A codicil is a legal document used to amend an existing will without replacing the whole will. In Australia, validity and signing requirements depend on the law applying to the estate.
Read definitionWrench attack
A wrench attack is a plain-language name for coercion: someone uses threats or physical violence to force a person to reveal secrets or approve a Bitcoin transaction. It does not require breaking encryption.
Read definitionCounterparty risk
Counterparty risk is the chance that a company or person you rely on fails, refuses access or does not do what they promised. With a Bitcoin custodian, that can mean being unable to withdraw your holdings.
Read definitionGST (Goods and Services Tax)
GST (Goods and Services Tax) is an Australian tax of 10% on most goods and services. Treatment depends on the supply and the supplier’s circumstances; ask your accountant about your position.
Read definitionGo deeper
Structured lessons in the Learning Hub, side-by-side breakdowns in our comparison guides, and longer analysis in Insights.
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