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When Trusts Go Digital: Handling Cryptocurrency and Digital Assets in Estate Litigation

As digital assets become an increasingly common part of modern wealth portfolios, they’re beginning to play a central role in estate and trust disputes—especially in high-net-worth regions like Fort Lauderdale, Miami, and across South Florida. From Bitcoin and Ethereum to NFTs and domain names, the legal complexities surrounding digital assets can easily derail an estate plan or spark costly litigation.

At Conrad & Scherer, we’ve seen firsthand how unprepared estates and fiduciaries can face serious legal challenges when digital holdings aren’t properly addressed. In this article, we explore what families, fiduciaries, and legal professionals need to know when digital assets intersect with trusts, wills, and probate disputes.

Understanding Digital Assets in the Context of an Estate

Digital assets refer to electronic records of value or ownership that are stored online or on devices. Common types include: cryptocurrencies like Bitcoin and Ethereum, NFTs (non-fungible tokens), online financial accounts (like PayPal or crypto exchanges), digital wallets, and even websites or domain names. Unlike traditional bank accounts or real estate, digital assets may be encrypted, anonymous, and difficult to locate—creating serious hurdles for heirs or personal representatives.

The Growing Problem: When Trusts Don’t Account for Crypto

Failing to properly disclose or structure digital assets can lead to real issues. Beneficiaries might be unaware of hidden value. Access might be impossible due to lost private keys or two-factor authentication. This lack of preparation can spark legal disputes, claims of mismanagement, and tax complications. In South Florida, where many individuals hold digital investments or international assets, these risks are especially high.

Key Challenges in Digital Asset Estate Litigation

Locating and Valuing the Assets: Many digital holdings aren’t included in traditional financial records. If a trustee or representative doesn’t know where to look, assets may be lost forever. Even when found, the volatile nature of crypto makes valuation difficult. A Bitcoin wallet worth $50,000 one day could plummet or spike by the time it’s discovered.
Access and Legal Authority: Gaining access is often more complicated than identifying the asset. Without passwords, 2FA credentials, or clear legal authorization, heirs can’t retrieve holdings. In some cases, exchanges or wallet providers may legally refuse to cooperate.
Fiduciary Duty and Mismanagement Claims: Trustees or personal representatives are legally obligated to manage assets carefully. If they mishandle crypto—for example, by failing to secure private keys or selling assets during a market dip—they could face lawsuits from other beneficiaries. These disputes are becoming increasingly common in Fort Lauderdale and Miami probate cases.

Best Practices for Families and Fiduciaries

If you’re creating or managing an estate that includes digital assets, a proactive approach is essential. List digital assets clearly in your estate documents, including how they should be accessed and distributed. Store access credentials in a secure way, such as a password manager or physical vault. Consider working with legal and financial professionals who understand cryptocurrency—especially its valuation, tax implications, and security needs. Avoid vague language. Be specific in outlining how crypto or NFTs should be handled and who should be responsible for managing them.

Real-World Example: South Florida Family Dispute Over Bitcoin

In one recent South Florida case, a father’s undisclosed Bitcoin wallet led to a trust dispute between his children. The trustee claimed he couldn’t access the assets due to a missing key. The other siblings accused him of intentionally hiding the funds. What followed was nearly a year of forensic tracing, exchange subpoenas, and emergency court motions. The case illustrates how failing to plan for digital assets can create suspicion, legal battles, and significant financial loss.

Florida’s Legal Landscape on Digital Assets

Florida has adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which gives trustees and personal representatives limited authority to access digital assets. But unless your estate planning documents specifically grant that access, fiduciaries may still be denied entry. For Floridians, particularly those with holdings in crypto or NFTs, explicit authorization in wills or trusts is a must.

Why This Matters in South Florida

Fort Lauderdale and Miami are quickly becoming hubs for crypto investors, blockchain startups, and digital asset owners. That means more estate plans and probate cases involve these modern assets—and more opportunities for disputes. With South Florida’s large number of international residents and complex wealth portfolios, these cases often cross legal, technical, and jurisdictional lines. At Conrad & Scherer, we combine deep litigation experience with modern asset understanding to help clients navigate this evolving area of law.

Planning Ahead to Prevent Litigation

Whether you’re building your estate or resolving a dispute, the best strategy is a well-documented, forward-thinking plan. Don’t wait for problems to arise. Address digital assets clearly, securely, and with the support of experienced counsel. If a conflict has already emerged, working with a firm that understands both probate litigation and digital finance is essential.

Contact Conrad & Scherer

Our trust and estate litigation team represents clients throughout South Florida in complex disputes involving digital assets, cryptocurrency, and high-value estates. If you’re navigating a digital estate issue or suspect mismanagement of crypto holdings, contact our Fort Lauderdale office today.