Crypto Estate Planning and Inheritance in France: Complete Legal Guide

Table of Contents

1. Introduction: Crypto Assets and Inheritance Law
2. French Legal Framework
3. Inheritance Taxation of Crypto Assets
4. Estate Transmission Planning
5. Technical Transmission Solutions
6. Special Cases and Estate Structures
7. MiCA and Regulatory Developments
8. Practical Checklist
9. FAQ
10. Sources and References

Summary: Transferring crypto assets raises unique legal, tax, and technical challenges. This comprehensive guide covers the French legal framework, reporting obligations, estate planning, and practical solutions for passing on your Bitcoin and other digital assets. Fully sourced with references to statutory texts.

Table of Contents

1. Introduction: Crypto Assets and Inheritance Law
2. French Legal Framework
3. Inheritance Taxation of Crypto Assets
4. Estate Transmission Planning
5. Technical Transmission Solutions
6. Special Cases and Estate Structures
7. MiCA and Regulatory Developments
8. Practical Checklist
9. FAQ
10. Sources and References

Introduction: Crypto Assets and Inheritance Law

Crypto assets pose unique legal challenges that traditional law struggles to address.

A Sui Generis Asset Class

Crypto assets represent an atypical asset class under French law. Unlike traditional assets:

• No trusted third party — Neither a bank nor a notary holds your keys
• Complex technical transmissibility — The seed phrase IS ownership
• Volatile valuation — Difficulty assessing value for inheritance tax purposes
• Recent legal framework — The PACTE law (2019) laid the first foundations

The Estate Planning Challenge

According to estimates from ADAN (Association pour le Developpement des Actifs Numeriques — the French Association for Digital Asset Development), approximately 8% of French citizens held crypto assets in 2024. Many have made no arrangements for transmission.

Without proper planning, your Bitcoin may be permanently lost upon your death.

French Legal Framework

The PACTE law laid the first legal foundations for digital assets.

Legal Qualification of Crypto Assets

The PACTE Law (2019)

Law No. 2019-486 of May 22, 2019 (the PACTE law — Plan d'Action pour la Croissance et la Transformation des Entreprises) introduced the first legal definition of digital assets into the French Monetary and Financial Code (Code monetaire et financier — CMF):

Article L. 54-10-1 CMF: "Digital assets include:

1. Tokens [...] representing, in digital form, one or more rights [...];
2. Any digital representation of value that is not issued or guaranteed by a central bank or a public authority [...]"

Source: Legifrance - Article L54-10-1 CMF

Legal Nature: Intangible Movable Property

Case law and legal doctrine classify crypto assets as intangible movable property (biens meubles incorporels), which implies:

• Application of the civil law of property (Articles 516 et seq. of the French Civil Code)
• Transmissibility through succession
• Seizability (civil enforcement proceedings)
• Inclusion in the taxable estate

Source: Conseil d'Etat (Council of State) Report, 2018, "Digital Technology and Fundamental Rights"

Applicable Succession Rules

General Succession Law

Crypto assets are subject to the general rules of succession (French Civil Code, Book III, Title I):

• Reserved portion (reserve hereditaire — Article 912, Civil Code) — Descendants are entitled to a minimum share of the estate
• Disposable share (quotite disponible) — The deceased may freely dispose of the remainder
• Reporting of prior gifts (rapport des liberalites) — Previous donations are accounted for in the estate settlement

Notary Obligations

The notary handling the estate must:

1. Inventory all of the deceased's assets, including crypto assets
2. Value them as of the date of death
3. Include them in the inheritance tax return (declaration de succession)

Source: Article 78 of the French General Tax Code (Code general des impots — CGI)

Declaration and Valuation

Declarable Value

Article 758 of the CGI requires declaration of all of the deceased's assets:

"Movable property [...] shall be assessed at its value on the date of transfer"

For crypto assets, this means:

• Value in euros on the date of death
• Based on a reference price (CoinGecko, CoinMarketCap, or a major exchange)

Required Documentation

The notary may require:

• Acquisition history (to calculate latent capital gains)
• Wallet addresses
• Portfolio valuation as of the date of death

Inheritance Taxation of Crypto Assets

Crypto assets are subject to the same inheritance taxes as traditional assets.

Transfer Duties on Gratuitous Transfers

Applicable Tax Schedule

Crypto assets are subject to inheritance duties according to the schedule in Article 777 CGI:

Direct line transmission (parents to children):

Direct line allowance: EUR100,000 per parent per child (Article 779 CGI)

Source: Legifrance - Article 777 CGI

Transmission Between Spouses / PACS Partners

Full exemption from inheritance duties for the surviving spouse or PACS partner (Article 796-0 bis CGI). PACS (Pacte civil de solidarite) is the French civil partnership.

Source: Legifrance - Article 796-0 bis CGI

Latent Capital Gains

The Capital Gains Purge at Death

Crucial point: latent capital gains are purged upon death.

The heir inherits the crypto assets with a new acquisition cost equal to the value declared in the estate.

Example:

• The deceased purchased 1 BTC at EUR5,000
• Value at death: EUR50,000
• Latent capital gain: EUR45,000 (not taxed)
• The heir receives 1 BTC with an acquisition cost of EUR50,000

This "purge" can represent substantial tax savings compared to selling followed by a gift.

Source: Article 150 VB of the CGI and administrative guidance BOI-RPPM-PVBMC-20-10

Specific Reporting Obligations

Form 2725 (IFI — Real Estate Wealth Tax)

If the deceased was liable for IFI (Impot sur la Fortune Immobiliere — the French real estate wealth tax), crypto assets are not included in the IFI tax base (they are not real estate assets).

Source: BOI-PAT-IFI-20-10 §1

Estate Tax Return

The estate tax return (forms 2705, 2705-S, 2706) must include:

• Nature of the crypto assets (Bitcoin, Ethereum, etc.)
• Quantity held
• Value on the date of death
• Location (wallet, exchange)

Estate Transmission Planning

Planning the transmission of your crypto assets is essential to prevent their permanent loss.

Traditional Tools Adapted to Crypto Assets

Wills

A will allows you to specify precisely who will receive the crypto assets:

Article 895, Civil Code: "A will is an act by which the testator disposes, for the time when he or she shall no longer exist, of all or part of his or her property [...]"

Recommendations:

• Authentic will (executed before a notary) for substantial crypto estates
• Explicitly mention crypto assets
• Provide for the mechanism of key transmission (see the technical section)

Donations (Gifts Inter Vivos)

Donating crypto assets is possible (Article 894, Civil Code) but entails:

• Immediate taxation of the donor on the capital gain (flat tax of 30%)
• Gift duties according to the applicable schedule (but allowances are renewable every 15 years)

Strategy: Successive donations within the allowance limits (EUR100,000 per child every 15 years).

Dismemberment of Ownership (Demembrement de propriete)

Dismemberment of ownership can be applied to crypto assets:

• Usufruct (usufruit): Right to the "fruits" or income (e.g., staking rewards)
• Bare ownership (nue-propriete): Right to the capital

Practical limitation: The usufruct of a "dormant" Bitcoin generates no income. Dismemberment is more relevant for staked assets.

Source: Articles 578 to 624, Civil Code

Life Insurance and Crypto Assets

Crypto Unit-Linked Policies (Unites de Compte)

Some life insurance contracts offer unit-linked funds (unites de compte — UC) with exposure to crypto assets:

• Bitcoin/Ethereum ETFs (via trackers)
• Specialized crypto funds
• Indexed certificates

Tax advantages:

• Partial exemption from inheritance duties (EUR152,500 per beneficiary for premiums paid before age 70)
• Outside the civil estate

Major limitation: This is not actual Bitcoin. You hold a claim against the insurer, not crypto assets in self-custody.

Luxembourg Life Insurance

Luxembourg contracts offer greater flexibility:

• Unlisted assets potentially eligible
• Custom dedicated funds (fonds dedies)
• Triangle of security (enhanced protection — the Luxembourg regulatory framework separating insurer assets from policyholder assets)

Caution: Consult a specialized wealth management advisor — structuring is complex.

Future Protection Mandate (Mandat de protection future)

Article 477 of the Civil Code: The future protection mandate allows you to plan ahead for incapacity.

For crypto assets, the mandate can designate:

• Who will have access to the keys in case of incapacity
• The powers of the mandatary (hold, sell, transfer)

Recommendation: A notarized mandate for significant crypto estates.

Technical Transmission Solutions

Transmitting private keys without losing control is the central dilemma.

The Fundamental Problem

Transmitting crypto assets requires transmitting access to the private keys, which creates a dilemma:

• Giving the keys during your lifetime → Total loss of control
• Hiding the keys → Risk of permanent loss at death

Solution 1: Sealed Transmission Letter

Draft a detailed letter covering:

1. The existence of crypto assets
2. The location of the seeds (safe, multiple locations)
3. Step-by-step recovery procedure
4. Technical contacts if assistance is needed

Storage: With the notary (in a sealed envelope) or in a bank safe deposit box.

Solution 2: Seed Phrase Splitting (Shamir Secret Sharing)

Shamir's Secret Sharing scheme allows splitting a seed into N shares, of which M are required to reconstruct it:

3-of-5 example:

• 5 shares are created
• 3 shares are sufficient to reconstruct the seed
• 2 shares reveal nothing

Implementations:

• Trezor (native Shamir Backup)
• Seedsigner
• Open source scripts

Possible distribution:

• Share 1: Personal safe
• Share 2: With the notary
• Share 3: Trusted person #1
• Share 4: Trusted person #2
• Share 5: Bank safe deposit box

Solution 3: Multisig with Heir

2-of-3 configuration with:

• Key 1: You (everyday use)
• Key 2: You (secure backup)
• Key 3: Heir/spouse (active only upon death)

Upon death, the heir uses their key plus the backup to access the funds.

Solution 4: Crypto Succession Service (Dead Man's Switch)

Some services offer a "dead man's switch":

• You periodically confirm your activity
• In case of prolonged non-response, transmission to designated heirs

Examples: Casa (USA), certain self-hosted solutions

Caution: You are introducing a trusted third party. Evaluate the risk accordingly.

Solution 5: Bitcoin Timelock

Bitcoin supports timelocks (CLTV — CheckLockTimeVerify / CSV — CheckSequenceVerify):

• Pre-signed transaction to the heir
• Locked until a future date
• Renewable regularly during your lifetime

Advantage: No trusted third party Disadvantage: Technical complexity, requires periodic renewal

Special Cases and Estate Structures

Holding company structures offer flexibility but add complexity and costs.

Holding Through a Company

Patrimonial Holding Company

Crypto assets can be held through a holding company:

Advantages:

• Separation of personal and business assets
• Transmission of company shares (not the crypto directly)
• Potentially advantageous tax treatment

Disadvantages:

• Structural costs (accounting, filings)
• Specific tax regime (corporate income tax — IS, dividends)
• Administrative complexity

Structure: The most common form is a SAS (Societe par Actions Simplifiee — a simplified joint-stock company), which offers governance flexibility.

Source: See the patrimonial holding regime (Article 145 CGI for the parent-subsidiary regime)

SCI and Crypto?

The SCI (Societe Civile Immobiliere — a French real estate holding company) has the corporate purpose of holding real estate. Purchasing crypto assets constitutes an act outside the corporate purpose which can:

• Trigger personal liability of the managers
• Lead to tax reclassification

Recommendation: Do not hold crypto assets through a standard SCI.

Expatriation and Succession

Tax Residence at Death

The place of tax residence at death determines the applicable duties:

• French resident → French law applies to worldwide assets
• Non-resident → French law applies only to assets located in France

Complex question: Where are crypto assets "located"? Legal doctrine generally considers that they follow the holder's residence.

Tax Treaties

International tax treaties may modify the applicable rules. Consult a tax attorney for cross-border situations.

Spouse Protection

Preciput Clause (Clause de preciput)

A preciput clause in a marriage contract allows the surviving spouse to take certain assets before the estate is divided:

Article 1515, Civil Code: "The spouses may agree, in their marriage contract, that the survivor shall take [...] such portion of the community property"

This can be applied to crypto assets held as community property.

Matrimonial Advantages

Other matrimonial advantages (unequal sharing clause, preciput in full ownership) can be adapted to protect the surviving spouse.

Recommendation: Consult your notary to adapt the matrimonial regime to your crypto estate.

MiCA and Regulatory Developments

The European regulatory framework brings clarification but also new constraints.

The MiCA Regulation

Regulation (EU) 2023/1114 (Markets in Crypto-Assets) is being applied progressively:

• December 2024: Stablecoins (Titles III and IV)
• December 2024: Crypto-assets and CASP (Titles I, II, V, VI, VII)

Source: MiCA Regulation - EUR-Lex

Impact on Estate Management

Mandatory Licensed Service Providers

MiCA requires licensing of crypto-asset service providers (CASP — Crypto-Asset Service Providers). Consequences:

• Only licensed CASPs will be able to provide custody services
• Crypto estate advisory services will be regulated
• Enhanced traceability (see Travel Rule)

Legal Clarification

MiCA provides clarification on the nature of holders' rights over crypto-assets:

• Asset-referenced stablecoins confer rights over the underlying assets
• Utility tokens have a clarified contractual nature

This clarification will facilitate the handling of crypto assets in estate proceedings.

DAC8: Automatic Exchange of Information

Directive DAC8 (2023/2226) requires from 2026 onward:

• Automatic exchange of information on crypto holders
• Reporting by CASPs to tax authorities
• Increased transparency on crypto holdings

Estate impact: Concealing crypto assets will become virtually impossible.

AMLR and Travel Rule

The AMLR (Anti-Money Laundering Regulation) and the Travel Rule impact transfers:

• Mandatory identification for transfers above EUR1,000
• Origin and destination traceability of funds
• Enhanced due diligence for significant amounts

Practical Checklist

This checklist guides you in securing the transmission of your digital assets.

Crypto Estate Inventory

• List all crypto assets held
• Document wallet addresses
• Calculate the acquisition cost of each position
• Assess the current total value
• Identify latent capital gains

Technical Preparation

• Back up seed phrases on durable media (steel)
• Choose a transmission method (letter, Shamir, multisig)
• Test the recovery procedure
• Document the procedure step by step
• Train a trusted person on the technical aspects

Legal Preparation

• Inform the notary of the existence of crypto assets
• Draft or update your will
• Assess the value of making a donation (within allowance limits)
• Verify the matrimonial property regime
• Consider a preciput clause if married

Documentation to Maintain

• Complete purchase history (dates, amounts, sources)
• Exchange statements (download regularly)
• Copies of tax filings (form 3916-bis for foreign accounts, form 2086 for capital gains)
• Secured transmission letter
• Contact details for advisors (notary, tax attorney)

FAQ

What happens if nobody knows about my crypto at death?

The crypto assets will be permanently lost. The estate settlement will only cover known assets. This underscores the critical importance of preparing the transmission.

Can a notary access my wallets?

No, the notary has no technical means to access your wallets. It is up to you to arrange key transmission, either to the notary (sealed envelope) or to an heir/executor (executeur testamentaire).

Do I have to declare my crypto to my notary during my lifetime?

No, you have no obligation to declare your crypto estate to your notary during your lifetime. It is a voluntary estate planning step.

Are crypto assets on an exchange transferable to heirs?

Yes. Heirs can contact the exchange with the death certificate and certificate of inheritance (certificat d'heredite) to request transfer of the assets. Procedures vary by platform.

Can I gift Bitcoin to my children?

Yes. Donating crypto assets is subject to standard gift duties (tax schedule and allowances). The donor pays the flat tax (30%) on the capital gain at the time of the donation.

How should I value my crypto for the estate?

The value used is the value on the date of death. Use a reference price (average of several exchanges, or the price from a major exchange such as Kraken or Coinbase). Keep supporting documentation.

Sources and References

Legislative and Regulatory Texts

Administrative Guidance

Case Law

Case law specifically addressing crypto estate successions remains rare in France. Courts apply the general rules governing intangible movable property.

Additional Resources

• ADAN (Association pour le Developpement des Actifs Numeriques): adan.eu
• AMF — Crypto section: amf-france.org
• Legifrance: legifrance.gouv.fr

Related Articles

Article updated December 21, 2025. This guide is for informational purposes only and does not constitute personalized legal advice. Consult a notary and/or a tax attorney for your specific situation.