Digital Inheritance — What Happens to Your Money When You Die?

Quick Answer

When you die, banks and brokers freeze your accounts the moment they learn of the death, and heirs cannot touch the funds until inheritance proceedings finish — typically 3–12 months. In Poland you can bypass this for cash by filing a "death disposition" (dyspozycja na wypadek śmierci), paying designated relatives up to ~150,000 PLN immediately and outside the inheritance estate. The bigger risk is invisibility: if your family does not know an account, crypto wallet, or brokerage holding exists, they may never find it.

The Problem Nobody Talks About

You have a bank account, an IKE retirement account, crypto on Binance, ETFs on XTB, treasury bonds, and three streaming subscriptions. Now the question: does anyone close to you know where all of this is and how to access it?

In the digital era, our assets are scattered across dozens of platforms. Traditional wills cover real estate and bank accounts, but rarely mention crypto wallets, brokerage accounts, or loyalty points worth thousands of złoty.

This isn't a topic for "someday." According to Poland's Central Statistical Office, over 400,000 people died in Poland in 2024. Statistically, some of them left digital assets that their loved ones never found.

What Happens to a Bank Account After Death?

Individual Account

After the owner's death, the bank freezes the account immediately upon receiving information about the death (usually from a death certificate or the PESEL system). Family members cannot withdraw funds until the inheritance proceedings are completed.

Step-by-step process:

1. Bank freezes the account
2. Heirs file for confirmation of inheritance acquisition (court) or a notarial deed of inheritance (notary)
3. After obtaining the inheritance document, the bank releases funds according to inheritance shares
4. The entire process typically takes 3–12 months

Death Disposition (Dyspozycja na wypadek śmierci)

Few people know this, but every bank account holder in Poland can file a death disposition (also called a bank bequest). This allows you to designate people who receive money immediately after death — without waiting for inheritance proceedings.

Limits (2025):

• Maximum of 20 times the average salary (~150,000 PLN)
• Can designate: spouse, children, grandchildren, parents, grandparents, siblings
• Funds are paid outside the inheritance estate

This is one of the simplest ways to protect your loved ones — yet fewer than 5% of Poles use it.

What About Investments?

Brokerage Account (XTB, mBank, Bossa)

Brokerage accounts are frozen similarly to bank accounts. Stocks, ETFs, and bonds become part of the inheritance estate. Heirs can:

• Transfer securities to their own brokerage accounts
• Order their sale and divide the proceeds

The problem: If your loved ones don't know you had a brokerage account, they may never find it. Brokers don't actively search for heirs.

IKE / IKZE (Individual Retirement Accounts)

These are among the best-regulated products for inheritance purposes:

• When opening IKE/IKZE, you designate a beneficiary
• Funds go to the beneficiary without inheritance proceedings
• Withdrawal from IKE after death is exempt from inheritance tax (though IKZE is subject to income tax)

PPK (Employee Capital Plans)

PPK funds are also inherited. If you designated an authorized person — they receive the money directly. If not — it enters the inheritance estate.

Cryptocurrency — The Hardest Case

Crypto is the most commonly lost asset after death. Why?

• Private keys to a hardware wallet (Ledger, Trezor) are known only to you
• The seed phrase (24 words) is the only way to recover funds
• Exchanges (Binance, Bybit) require 2FA — without access to the phone and email, loved ones can't log in
• There's no central registry — nobody knows how much crypto you own

An estimated 3–4 million BTC (worth ~$200 billion) are permanently lost — some belonging to deceased individuals whose keys nobody could access.

What to Do

1. Write down your seed phrase and store it in a safe or with a notary
2. Inform a trusted person about the existence of your crypto wallet
3. Consider multisig solutions (e.g., Casa) — requiring multiple keys for authorization
4. If using an exchange, ensure someone has access to your email and 2FA

Subscriptions and Digital Accounts

After death, charges continue for Netflix, Spotify, cloud storage, domains, hosting. This can cost the family hundreds of złoty per month before someone realizes they need to cancel.

What to do:

• Create a list of all subscriptions and linked payment cards
• Indicate which are critical (e.g., business domain) and which can be immediately cancelled
• Consider a password manager (Bitwarden, 1Password) with emergency access for a trusted person

How to Prepare a Digital Will

Step 1: Inventory Your Digital Assets

Create a list of:

• Bank accounts (bank name, account number)
• Brokerage and investment accounts
• Cryptocurrency (exchanges, wallets, seed phrases)
• Life insurance policies
• Retirement accounts (IKE, IKZE, PPK, OFE)
• Subscriptions and digital services
• Loyalty programs (points can be worth thousands)

Step 2: Secure Access

• Password manager with emergency access
• Crypto seed phrases in a safe
• Login list and 2FA codes with a notary (in a sealed envelope)

Step 3: Inform Your Loved Ones

• Tell a trusted person where the list is
• Designate beneficiaries on IKE/IKZE/PPK
• File a death disposition at your bank

Step 4: Update Regularly

Review your digital will once a year. New accounts, closed services, changed passwords — everything needs updating.

How Freenance Helps Organize Your Finances

One of the biggest problems in inheritance is the lack of a complete financial picture. When assets are scattered across a dozen platforms, things get missed. Freenance aggregates data from banks, brokers, and crypto exchanges in one place — showing the full financial picture. This centralized asset map isn't just convenient during your lifetime — it's invaluable information for your loved ones if something happens.

FAQ

Can I inherit cryptocurrency in Poland?

Yes — cryptocurrency enters the inheritance estate like any other asset. The problem is technical access. If you don't have the seed phrase or access to the exchange account, the funds are practically unrecoverable. They're legally yours, but physically — unreachable.

How much does inheritance proceedings cost in Poland?

Court confirmation of inheritance acquisition costs 100 PLN (court fee). A notarial deed of inheritance costs 150–500 PLN. Additional costs include estate division and potential inheritance tax (spouses, children, and parents are exempt if reported within 6 months).

Is it worth making a will if I only have a bank account and an apartment?

Yes — even a simple will prevents family disputes and speeds up estate division. A notarial will costs ~100–200 PLN and clearly specifies who gets what. Without a will, statutory inheritance rules apply, which may not align with your wishes.

How can I pass on access to my crypto wallet after death?

A standard will transfers legal ownership, but it does not solve the technical access problem — heirs still need the seed phrase or exchange credentials to recover the funds. Some people record their seed phrase securely (for example in a safe or with a notary) and inform a trusted person that a wallet exists, while others use multisig setups. It is worth reviewing your arrangement periodically, since lost keys generally mean permanently lost assets.

What is a death disposition and how does it differ from a will?

A death disposition (dyspozycja na wypadek śmierci) is filed directly with your bank and lets designated close relatives receive funds soon after death, outside the inheritance estate. A will, by contrast, covers your broader estate and takes effect through inheritance proceedings, which can take months. The disposition is generally capped at around 20 times the average salary, so it complements rather than replaces a will.

Do my loved ones have to pay tax on inherited bank money?

Inheritance tax rules in Poland generally exempt the closest family — spouses, children, and parents — provided the acquisition is reported to the tax office within the required deadline. More distant heirs may owe inheritance tax depending on the amount and relationship. Because thresholds and reporting deadlines change, it is worth checking the current rules at the time of inheritance.

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