When a Canadian dies, their crypto does not pass on by itself, and the exchange will not simply hand it over. The CRA treats the deceased as having sold their capital property, crypto included, at fair market value just before death, and the tax comes out of the final return. Then the executor has to prove their authority to the exchange, and if the coins sat in a self-custody wallet, they need the keys. No keys, no coins.
Canada has no inheritance tax, but income tax on the final return and provincial probate fees both apply. Spouse and common-law partner transfers are the main exception to the deemed sale.
- Do now: write down where every account and wallet is and how an executor could prove their access
- Do not: put a seed phrase in a will, since I would not want a recovery phrase in a document an executor passes around
- Check tax: a large unrealised gain can mean a big bill on the final return
| Where The Crypto Sits | What An Executor Needs | What The Platform Does |
|---|---|---|
| Coinbase account | Death certificate, probate documents, photo ID of the person named in them, and a signed letter directing the transfer | Freezes the account when it learns of the death; does not support naming a beneficiary; transfers to a new account opened by the fiduciary |
| Kraken account | Colour image of the death certificate, proof of appointment as legal representative, valid photo ID, and a signed and dated letter confirming the death | Has a claims process but does not offer a beneficiary option |
| Self-custody wallet | The seed phrase or hardware wallet and its PIN | Nothing. There is no company to ask. Lost keys mean lost coins |
| Other exchanges | Ask each platform for its deceased account policy | Varies. Offshore platforms are the hardest to deal with |
What Happens To My Crypto On A Canadian Exchange When I Die?
The account is frozen until someone with legal authority steps forward. On Coinbase, the process starts once the company receives legal documentation of the death, and the assets move into a new account opened by the executor, not by a family member. Kraken asks for a death certificate, proof of the legal representative's appointment, photo ID and a signed letter. Neither platform lets you name a beneficiary on an individual account, so your will or provincial intestacy law decides who gets the account.
That is the reason I tell people to keep their holdings on platforms that have a clear Canadian process. A registered platform has a Canadian legal entity and an address to send the executor's papers to. With some of the offshore platforms I label in my ranking, an executor may be dealing with a company in another country that refuses to deal with Canadian estates, or does not answer. See my best crypto exchanges in Canada for the registered options, such as Coinbase, Kraken and Newton.
How Is Crypto Taxed When Someone Dies In Canada?
The CRA says capital property, which includes investments such as crypto-assets, is deemed to be sold immediately before death at fair market value. That can create a capital gain or loss, reported on Schedule 3 of the final return. The gain is the fair market value on the date of death minus the adjusted cost base. Half of a capital gain is included in income under the CRA's current rules.
There is a major exception: when the property goes to a surviving spouse or common-law partner, the deemed sale generally does not apply and the tax can be deferred. If it goes to children or anyone else, the estate pays tax on the gain on the final return, before the heirs get the coins. This is why cost records matter. Without the date and price you paid, the executor has a hard time working out the gain. My crypto taxation guide explains cost base and records, and the CRA says to keep them for six years.
Is There An Inheritance Tax On Crypto In Canada?
No. Canada has no federal inheritance or estate tax on beneficiaries. What exists instead is the deemed sale above and provincial probate charges. Ontario, for example, charges an Estate Administration Tax of $15 for every $1,000 of estate value over $50,000, and nothing on estates of $50,000 or less. Other provinces use different fee schedules, so ask a local estate lawyer. Crypto counts toward the estate's value like any other asset.
How Do I Make Sure My Executor Can Find My Crypto?
- List every account and wallet. Exchange name, email used, and where the second factor lives. Update it each time you move coins.
- Name an executor who understands crypto, or who will hire someone who does. The will can say who gets what. It cannot recover a lost seed phrase.
- Store recovery information separately from the will. A sealed letter in a safety deposit box or with a lawyer, with instructions on how to use it. A will that goes to probate can end up in a court file, which is a bad place for a seed phrase.
- Keep cost records. Dates, amounts and CAD values of every buy and sale. Tools like Koinly and CoinLedger can export a history that the executor can hand to an accountant.
- Review once a year. Wallets change, platforms close and passwords get rotated.
Can A Hardware Wallet Help With Estate Planning?
It can make the coins safer while you are alive, but it does not solve inheritance on its own. A Ledger or Trezor protects the keys, and the PIN and recovery phrase are what the executor needs. Two separate pieces of paper, stored in different places and explained in your instructions, are a sensible start. My best crypto wallets for Canadians page compares the options. This is general information, not legal or tax advice. Talk to an estate lawyer in your province.
What Should A Crypto Letter Of Instruction Include?
- A list of every exchange, with the email address on each account and where the second factor lives.
- Which wallets exist, what type they are and where the hardware devices are kept.
- How to find the recovery phrases, stored apart from the letter, with whoever holds them named.
- Your cost records or the name of the tool that has them.
- Who to call: your lawyer, your accountant and one person who understands crypto.
- What you do not want done: for example, not to send coins to anyone who contacts the family claiming they can unlock the wallet.
Update it whenever you move coins or change platforms. A letter that lists a closed exchange sends your executor on a dead end, and the next section shows how often that happens.
What Happens If The Exchange Closes Or Leaves Canada?
It has happened more than once, and an estate can arrive after the window has closed. Uphold stopped supporting Canadian accounts on June 11, 2025 with a withdrawal deadline of September 8, 2025. BitMEX shut its exchange on September 23, 2026, with only withdrawals remaining. Robinhood's purchase of WonderFi on June 1, 2026 means Coinsquare and Bitbuy customers are moving to the Robinhood app. An executor who finds a Coinsquare account in 2027 will need to know that. When the platform fails outright, the outcome can be poor: QuadrigaCX creditors received about 13% of their proven claims, as The Globe and Mail reported in May 2023.
The simple defence is to check your list once a year, withdraw balances from any platform that is closing or leaving, and keep your holdings on a platform in my best crypto exchanges in Canada ranking that is registered in Canada. See Coinbase at 9.9 out of 10, Kraken at 9.6 and Newton at 9.3.
What Changed For Crypto Estates In October 2026?
- The CRA's cryptocurrency guide page on reporting income from crypto transactions was updated, and still states that half of a capital gain is included in income.
- Canadian crypto platforms began collecting customer data for the CARF reporting regime, with the first reports to the CRA due in 2027 for 2026 activity, according to CPA Canada.
- Robinhood completed its WonderFi purchase, so some Canadians' platforms are changing, which makes your account list worth checking.
Frequently Asked Questions
What Happens To My Crypto If I Die In Canada?
An exchange account is frozen until your executor proves their authority. A self-custody wallet cannot be recovered without the keys. The CRA treats your capital property as sold at fair market value just before death.
Can I Name A Beneficiary On Coinbase Or Kraken?
Not on individual accounts, according to both platforms' help pages. Your will, or your province's intestacy rules, decide who receives the account.
Is There Inheritance Tax On Crypto In Canada?
No. There is income tax on the final return through the deemed sale, and provincial probate fees such as Ontario's Estate Administration Tax.
Does The Deemed Sale Apply If My Spouse Inherits My Crypto?
A transfer to a spouse or common-law partner generally avoids the deemed sale and defers the tax. Ask an accountant about your estate.
Should I Put My Seed Phrase In My Will?
I would not. Keep recovery information in a separate sealed document with clear instructions, because wills can be filed in court records.
How Long Should My Executor Keep Crypto Records?
The CRA says to keep crypto records for six years from the end of the last tax year they relate to.