Economy
How to Tackle the Challenges of Crypto Estate Planning
Learn about the challenges you’ll face with crypto estate learning and discover three possible ways to go about it.
While traditional assets like real estate, stocks, or cash are relatively easy to incorporate into estate plans, the decentralized and private nature of cryptocurrencies introduces new complexities.
Keep reading as we discuss the primary challenges of crypto estate planning and explore three viable options for addressing them.
What Makes Crypto Estate Planning Challenging?
Crypto estate planning presents unique difficulties that go beyond traditional financial assets.
Unlike bank accounts or physical property, cryptocurrencies operate on decentralized networks and are protected by private keys, making them more difficult to locate and access.
Additionally, the lack of clear regulations and the growing threat of cyberattacks further complicate the process. Transferring crypto assets to beneficiaries can become a legal and logistical nightmare without the right strategies.
Let’s discuss some of these challenges even further.
Locating and Accessing Crypto Assets
One of the biggest challenges with crypto estate planning is simply knowing where and how to locate the assets. The decentralized nature of cryptocurrencies makes it challenging to locate and access them after the owner’s death.
Digital wallets, often secured with private keys, may be difficult to find or require specialized knowledge to access. This is especially true if the owner has used multiple wallets or exchanges over time. These wallets can exist across multiple platforms or exchanges, and the decentralized nature of the blockchain means there’s no “help desk” to call if the executor of your estate can’t access them.
What’s worse, private keys are often long strings of random characters, impossible to guess or recreate. Without them, access to cryptocurrency is lost permanently.
Even if an heir knows you have Bitcoin (BTC) or Ether (ETH), they can’t unlock it without the necessary credentials. This situation makes it essential to have a secure but accessible way of sharing this information as part of your estate plan.
Fiduciary and Oversight Concerns
Traditional estate planning mechanisms, such as wills and trusts, may not be well-suited for managing crypto assets. Cryptocurrencies are less regulated than traditional financial assets. This raises questions about how fiduciaries—such as estate executors, trustees, or legal guardians—can legally manage or oversee these assets.
Bitcoin estate planning becomes particularly complex due to the legal uncertainties and the technical knowledge required to handle these digital assets. Fiduciaries may lack the technical expertise or understanding to manage these digital assets effectively. They may also face challenges in ensuring the security of the assets and protecting against potential losses due to market fluctuations or hacking.
Additionally, some jurisdictions are still figuring out how to treat cryptocurrencies in the context of estate planning.
Are they considered property, currencies, or securities? The classification matters because it determines how taxes apply and what legal rights your heirs have.
Until there’s greater regulatory clarity, crypto estate planning remains murky and filled with legal uncertainties.
Cybersecurity Threats
Cryptocurrency is a lucrative target for cybercriminals. Estate planning involves sharing sensitive information, such as private keys and wallet passwords, which introduces vulnerabilities to your assets.
If your information is compromised, your heirs may not only lose their inheritance but could also face the additional legal and financial burden of trying to recover stolen assets.
Unlike traditional assets that can be frozen or recovered through legal action, once cryptocurrency is stolen, it is extremely difficult—if not impossible—to retrieve. Therefore, cybersecurity is a critical aspect of crypto estate planning.
The risk of unauthorized access to digital wallets increases the complexity of estate planning, as it requires robust security measures to protect the assets. Proper encryption, secure storage, and limiting the number of people with access to sensitive information are all essential in protecting these digital assets from crypto hacks and scams.
Here Are Three Crypto Estate Planning Option That Work
Failing to plan effectively for the transfer of these assets after death can lead to lost wealth or legal challenges for heirs.
Will
While a will is a fundamental estate planning tool, it may not be sufficient for crypto assets. It’s essential to include specific instructions regarding the location of digital wallets, private keys, and any necessary access codes.
Consider appointing a tech-savvy executor who can navigate the complexities of cryptocurrencies. However, be aware that wills can be public documents, so sensitive information about private keys should be handled with care.
Trustee
A more secure option is appointing a trustee who has specific knowledge about how to manage crypto assets. This individual or entity would be responsible for managing and distributing your cryptocurrency holdings according to the instructions in a trust document.
By setting up a trust, you can avoid the public probate process, thereby keeping sensitive information, like private keys, out of the public domain. The trustee can also implement security measures to protect the assets from unauthorized access.
LLC
Another increasingly popular option is to establish an LLC in the United States to hold your cryptocurrency assets. This option allows you to separate your digital holdings from your personal estate, providing both legal protection and privacy.
Upon your death, the LLC would continue to exist, and ownership can be transferred according to the rules you’ve set in place.
An LLC can be particularly beneficial for people with significant crypto holdings, as it offers a legal structure that allows for smoother transitions of ownership. It can also help minimize tax liabilities and protect assets from creditors.
You can establish detailed instructions for how the LLC should be managed after your passing, including the distribution of crypto assets.
The LLC option provides a robust solution to many estate planning challenges. However, setting up and managing an LLC in the U.S. requires careful consideration and involves legal and financial professionals.
Final Take
Crypto estate planning requires a thoughtful and proactive approach. By understanding the challenges and exploring the available options, individuals can ensure that their crypto assets are protected and transferred according to their wishes.
It’s advisable to consult with legal and financial professionals who specialize in cryptocurrencies to develop a comprehensive estate plan that addresses the unique needs of digital assets.
Remember to also regularly review and update your plan as the crypto landscape evolves.
By Adedapo Adesanya
The Nigerian Insurers Association (NIA) has disclosed that seven additional insurance companies have secured full recapitalisation approval from the National Insurance Commission (NAICOM), bringing the industry-wide recapitalisation exercise to a successful conclusion.
In a statement on Friday, NIA Chairman, Mrs Ebelechukwu Nwachukwu, said the milestone represented significant progress towards building a stronger, more competitive and trusted insurance market in Nigeria.
She said the seven companies, alongside the 41 insurance companies and two reinsurance companies earlier approved, had demonstrated resilience, financial discipline and corporate strength by successfully completing the final verification process.
“Having successfully navigated the rigorous final verification process, these companies, alongside the earlier approved 41 insurance companies and two reinsurance companies, have demonstrated exceptional resilience, corporate fortitude, and financial discipline,” Mrs Nwachukwu said.
She added that the successful recapitalisation had positioned the companies to deliver greater value to policyholders and contribute to deeper insurance penetration nationwide.
Mrs Nwachukwu commended NAICOM for its regulatory oversight during the exercise, describing the commission’s approach as fair, structured and focused on strengthening market integrity.
“NAICOM’s strategic foresight and structured execution have elevated the Nigerian insurance industry, reinforcing its position within the broader financial sector as a substantially stronger, highly resilient, and globally competitive market,” she said.
The NIA chairman reaffirmed the association’s commitment to supporting insurance companies as they adapt to new regulatory requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
She said the association would continue to work with NAICOM to promote a sustainable and future-ready insurance sector.
Mrs Nwachukwu also assured policyholders, investors and other economic stakeholders that the recapitalised industry was better positioned to support economic growth.
“With this recapitalization complete, the Nigerian insurance sector enters a transformative era. The industry is fully equipped to settle genuine claims promptly, absorb higher local and international risks, and serve as a cornerstone of financial stability, directly supporting President Bola Ahmed Tinubu’s vision of achieving a $1 trillion economy by 2030,” she said.
By Aduragbemi Omiyale
Capital market operators have been directed to immediately freeze the assets, funds, and other economic resources belonging to six individuals and three entities designated as terrorist financiers by the Nigeria Sanctions Committee (NSC).
This directive was given by the Securities and Exchange Commission (SEC) via a circular to all Capital Market Regulated Entities (CMREs), warning that failure to comply would constitute a violation of the Investments and Securities Act, 2025, and the SEC Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Rules and Regulations.
It said violations could attract regulatory sanctions, including fines, suspension of operations or revocation of registration, reminding capital market operators that all unusual or suspicious transactions must be promptly reported to the NFIU.
The regulator, which stated that the designations were made in line with the Terrorism Prevention and Prohibition Act (TPPA) 2022, listed the six individuals as Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu and Yakubu Ogirima Ibrahim. The three designated entities are Nine to Nine BDC Ltd, Generation Currency BDC Ltd and Abbal Bako & Sons Bureau de Change.
According to the SEC, Hammajama was listed on June 18, 2026, for involvement in terrorism financing and support for the Islamic State West Africa Province (ISWAP), while Usman was designated for providing material support to a designated terrorist organisation through repeated financial transactions.
The commission said Abubakar was listed for involvement in terrorism financing and membership of ISWAP, while Chiroma was designated for allegedly using Bureau De Change (BDC) operations and related corporate entities to facilitate the movement of funds linked to terrorist activities.
Muktar Muhammad Adamu was listed on June 15, 2026, for providing financial support and facilitating transactions linked to the financing network of the ISWAP Okene cell, while Ibrahim was designated for providing material and financial support to the ISWAP Kogi cell.
The SEC said the three entities were listed for their alleged involvement in facilitating and channelling funds connected to the ISWAP Okene financing network.
The commission directed CMREs to immediately identify and freeze, without prior notice, all funds, assets and other economic resources in their possession belonging to the designated persons and entities.
They are also required to report frozen assets and other compliance actions, including attempted transactions, to the Secretariat of the Nigeria Sanctions Committee.
In addition, the SEC directed regulated entities to immediately file suspicious transaction reports with the Nigerian Financial Intelligence Unit (NFIU) for further analysis of the financial activities.
It further instructed operators to report as suspicious transactions all cases of name matches in financial transactions, whether occurring before or after receipt of the sanctions list.
The regulated entities are also required to prohibit dealings with the designated persons and entities and continue monitoring for transactions involving them.
The SEC said any findings should be reported to the Nigeria Sanctions Committee through its designated reporting channel.
By Adedapo Adesanya
Dangote Sugar Refinery Plc, Nigeria’s biggest sugar producer, has raised N486 billion ($356 million) through an oversubscribed rights issue as the company moves to reduce its debt burden and strengthen its capital base after three consecutive years of losses.
The company, founded by Mr Aliko Dangote, raised the funds through the issuance of 8.1 billion ordinary shares at N60 per share, according to a filing with the Nigerian Exchange (NGX) Limited on Friday.
The development follows shareholders’ approval of the capital-raising plan at the company’s 20th Annual General Meeting held in April.
In a statement signed by the Company Secretary, Mr Temitope Hassan, the sugar firm said the rights issue is part of efforts to improve its financial position and provide funding to support its long-term growth plans.
The company’s directors are authorised to raise up to N500 billion through a rights issue, on terms and at a time to be determined by the Board.
Dangote Sugar increased its share capital to accommodate the new shares issued under the rights issue. The sugar producer’s board also authorised to allot the shares and the management of any fractional holdings in accordance with regulatory requirements.
The organisation said any shares remaining unallotted after the offer would be cancelled as permitted by law, describing the capital raise as one of the largest rights issues in Nigeria’s corporate history.
The capital raise comes against the backdrop of improved revenue performance but continued losses at the company.
In its 2025 audited results, Dangote Sugar recorded a 24.56 per cent increase in revenue to N829.2 billion, compared with the previous year. The growth was driven largely by strong demand for 50kg sugar, which generated N807 billion in revenue.
Retail sugar sales contributed N17.7 billion, while molasses and freight income generated N4.02 billion and N66.4 million, respectively.
Cost of sales increased by 11.35 per cent to N706.5 billion, largely due to raw material costs of N573.3 billion. This resulted in a gross profit of N122.6 billion.
Despite the improvement in revenue and gross profit, the company recorded a pre-tax loss of N72.2 billion in 2025, although this represented a significant improvement from the N270.8 billion loss reported in 2024.
Lagos remained the company’s largest market, accounting for 55.82 per cent of regional sales, followed by the North with 35.35 per cent, the West with 6.45 per cent and the East with 2.38 per cent.
The fresh capital is expected to provide Dangote Sugar with additional financial capacity as it works to reduce its debt obligations, strengthen its balance sheet and advance its long-term expansion plans.
