Retired With Bitcoin on a Hardware Wallet: How to Pass It to Your Children

Say you're retired, you bought bitcoin early, and it has sat on one hardware wallet ever since. It may now be one of the largest assets you own. You want three things: keep it safe, make sure your children inherit it, and live off it without selling.

Our team hears some version of this often. Inheritance is usually one of the first problems long-term holders want to solve. This page walks through the situation one step at a time.

What's at risk with one hardware wallet

A hardware wallet done well is real security, and many holders run one for years without a problem. The weak point in this situation is the family, not the device. If the seed phrase sits in a drawer and only one spouse knows how to use it, the children inherit a puzzle: a device, a list of words, and no one to call.

The Coldcard vulnerability in 2026 added a second worry. It showed that a device can be sound for years and still turn out to have a flaw. Holders who planned to pass a device down started asking whether the device should be the plan at all. Our hardware wallet guide covers what changed.

Step 1: Move it somewhere your family can reach

Three institutions protect your bitcoin. No one of them can lose it, move it, or use it, and nothing moves without your permission.

Multi-institution custody works like a bank vault that needs two keyholders to open: it takes two of the three (Onramp, BitGo, and CoinCover) to move your bitcoin. The bitcoin sits in a segregated vault titled in your name, which you can verify on-chain at any time. No hardware wallets, seed phrases, backups, or PINs to manage.

The move itself is a standard bitcoin transaction. You open a Core or Private account, select Move bitcoin, then Deposit, and send from your hardware wallet the way you always have. Send a small test amount first, confirm it arrived on a block explorer, then send the rest. Don't wipe the device or destroy the backup until the full transfer has confirmed. Moving bitcoin between wallets you own is generally not a sale, but confirm with a tax advisor before a large transfer. How the move works.

Some holders keep a smaller amount in self-custody alongside the vault. That's a reasonable choice.

Step 2: Name your children as beneficiaries

Once the account is open, you name beneficiaries and sign a transfer on death agreement. For a couple, one setup is one spouse as account owner, the other as primary beneficiary, and the children as contingent beneficiaries. You can update them anytime.

Three things follow:

• No probate for the account. A transfer on death agreement moves the bitcoin directly to the named beneficiary, outside the court process a will goes through.
• A stepped-up basis. Inherited bitcoin held outside a retirement account generally gets a basis equal to its fair market value on the date of death. For bitcoin bought early, that can remove most of the taxable gain on a later sale.
• A handoff, not a recovery. Your heirs present a death certificate and identification, and the Onramp team guides them through the transfer. Every account also includes a recovery kit with plain-English instructions.

How Onramp inheritance works

Step 3: Plan for incapacity, not just death

A transfer on death agreement only applies at death. If one of you is alive but can no longer manage the account, a beneficiary designation does nothing. That takes a durable power of attorney: one person named for the account, authority over financial accounts (ideally mentioning digital assets or bitcoin), and notarized. If it only takes effect on incapacity, expect to be asked for a doctor's letter.

Step 4: Decide whether you need a trust

Most couples in this situation don't need anything complicated. The federal estate tax exemption is $15 million per person and $30 million per married couple in 2026. A couple gets the full $30 million only if the first spouse's executor files a federal estate tax return to pass the unused exemption to the survivor, an election called portability. Below that, beneficiary designations and a revocable trust cover most estates. A vault can be titled in the name of your trust, so probate avoidance and privacy come with you staying in control.

Two things can change the answer:

• Your state. Roughly a dozen states plus DC have their own estate tax, often with a much lower exemption than the federal one, and five have inheritance taxes. Where you live matters more than most people expect. Bitcoin estate tax rules in 2026
• Growth. A position that looks comfortable today can cross the federal exemption by the time it transfers. If it does, a dynasty trust, which is irrevocable, can hold bitcoin outside your taxable estate with no end date. Onramp's Dynasty Trust Services works with First Covenant Trust & Advisors as the regulated trustee under South Dakota law. Onramp does not act as trustee. Bitcoin dynasty trusts

All of these sit on the same custody, so nothing needs to move again if your plan changes.

Step 5: Living off it without selling

Many retirees in this spot would rather not sell. One option is borrowing against the bitcoin. Onramp partners with Arch Lending, an independent company not affiliated with Onramp, for USD loans secured by bitcoin. Bitcoin you pledge as collateral moves out of your vault to a segregated on-chain address at Anchorage, a regulated qualified custodian. Lending on multi-institution custody is coming soon. A loan carries interest, a margin call if the price falls, and partial liquidation of the collateral if a margin call isn't met, so size it with room to spare. To date, no Onramp client with an Arch loan has been liquidated, even partially: our team works with clients ahead of a margin call so they have time to add collateral. Bitcoin-backed loans

What a finished plan looks like

• The bitcoin is in a vault titled in your name or your trust's, protected by three independent institutions.
• Your spouse and children are named as beneficiaries, and they know who to call.
• A durable power of attorney covers incapacity.
• Your estate attorney has looked at your state's estate tax and whether a trust fits.
• Any borrowing is sized so a price drop doesn't force a sale.

FAQ

Do my children need to know how to use a hardware wallet?

No. With the bitcoin in a multi-institution vault and beneficiaries named, your heirs present a death certificate and identification, and the Onramp team guides them through the transfer. For the bitcoin in the vault, there's no seed phrase or device to find. Any amount you keep in self-custody still needs its own written instructions.

Will my children get a step-up in basis?

Generally, yes, for bitcoin held outside a retirement account: the basis resets to fair market value on the date of death. Bitcoin inside an IRA follows IRA distribution rules instead. Confirm your situation with a tax advisor.

Is a transfer on death agreement enough, or do I need a trust?

For most estates under the federal exemption ($15 million per person, $30 million per couple in 2026), beneficiary designations and a revocable trust are enough. State estate taxes and expected growth can change that, so it's worth a conversation with an estate attorney.

What happens if one of us becomes incapacitated?

A beneficiary designation only applies at death. For incapacity you need a durable power of attorney that names one person for the account, gives them authority over financial accounts (ideally mentioning digital assets or bitcoin), and is notarized.

Can I keep some bitcoin on my hardware wallet?

Yes. Many holders keep a smaller amount in self-custody alongside their vault.

Does Onramp carry insurance?

Onramp maintains custody insurance through Canopius, a Lloyd's of London syndicate: up to $50M in aggregate coverage across our custody operations. Onramp pays the premium. Any client can add dedicated cover in their own name, through Native, at about 0.58% a year of the amount insured, with lower rates on larger limits.

What does Onramp cost for a larger balance?

Multi-Institution Custody starts at $100 a month. Core, which includes a vault in your name and inheritance planning, is $250 a month or $2,400 a year. Private, for balances of 10 BTC and up, starts at 0.04% a month. See pricing

This page is educational and is not legal, tax or investment advice. Onramp is not a law firm or tax practice. Consult your own attorney and tax advisor before acting.