What it is
A crypto or digital asset is a digitally represented holding whose control may depend on a provider account or private cryptographic keys. It is different from an insured bank deposit.
Why it exists
Household planning needs to establish that a holding exists and how an authorized person can find the legitimate custody process without exposing the means to transfer it.
When it may help
It helps when documenting an existing holding, identifying its custodian and preserving safe transaction records for later administration.
When it may not fit
It is not a stable substitute for emergency cash or a reason to store a seed phrase in a household planning app.
Tradeoffs and access
Prices can be volatile; platforms can fail or restrict withdrawals. Self-custody places recovery responsibility on whoever controls the keys. Network fees, irreversible transfers and scams make informal access instructions especially risky.
Tax considerations
The IRS treats digital assets as property for federal tax purposes. Sales, exchanges, payments and rewards can have different reporting consequences. Transaction history and basis matter even when the asset remains on one platform.
Common mistakes
Avoid equating a wallet address with ownership proof, assuming swapping tokens is never taxable, or sharing a recovery phrase with someone claiming to provide support.
Fictional example
Fictional Morgan records the custodian’s name and the location of a separate professionally reviewed access plan. Morgan does not paste the wallet seed into Planstead.
Questions to ask
Who is the custodian? What authority is required after incapacity or death? Where are transaction records? Can the recovery process work without exposing secrets?
What to record in Planstead
Record existence, ownership, custody type and safe instructions location in Digital Estate or Assets. Never record private keys, seed phrases, passwords or recovery codes.
Next step
Review the provider’s official succession process and discuss tax records and authority with qualified professionals.
Sources
Primary sources reviewed 2026-09-14. A source describes its own rules; the fictional examples illustrate questions, not a recommendation.