In short
Crypto at Wealthsimple sits in a non-registered account, so it can’t have a named beneficiary and always goes to the estate. The executor contacts Wealthsimple, receives instructions from the estates team within two to three business days, and sends the death certificate, the will, ID and a letter of direction asking Wealthsimple to liquidate and pay out. Neither the executor nor the heirs need to be Wealthsimple clients.
Why crypto always goes through the estate
Wealthsimple’s crypto account is a non-registered account; crypto can’t be held in a TFSA, RRSP or other registered account there. For those registered accounts a named beneficiary receives the assets directly. For crypto: “you’re unable to designate beneficiaries for non-registered accounts – like your Crypto account. Instead, you’d need to manage this through your estate” (Wealthsimple Help).
So: “For non-registered accounts and registered accounts without a named beneficiary: We’ll payout assets to the estate of the deceased client” (Estate settlement process).
The documents
Wealthsimple says its list “is not inclusive”:
- The death certificate.
- A notarial or certified true copy of the will, if there is one.
- A letter of direction from the executor with instructions to liquidate and pay out the estate.
- The executor’s valid government ID. Photos and scans are accepted.
- In Quebec: a testamentary search from the Barreau du Québec and a search certificate from the Chambre des notaires.
If you already have a probate document, such as a certificate of appointment or a grant of administration, Wealthsimple asks for a notarial or certified true copy. Depending on the province and the size of the estate, expect to be asked for one. See Crypto inheritance in Canada.
Step by step
- Contact Wealthsimple through its contact page and say that a client has died. At this stage, “We can’t disclose any information about the deceased individual’s Wealthsimple profile.”
- The estates team emails instructions within two to three business days. Check your spam folder.
- Send the documents as instructed.
- Wealthsimple pays out to the estate.
What the estate receives
The letter of direction asks Wealthsimple to liquidate and pay out, so plan on the crypto being sold and the estate receiving Canadian dollars. If the heirs would rather keep the crypto, ask the estates team before you sign the letter. “The beneficiary and/or estate executor doesn’t have to be a Wealthsimple client to receive the assets.”
For tax, Canada generally treats the deceased as having sold their capital property, crypto included, at fair market value immediately before death, unless it passes to a spouse or common-law partner (CRA). So the value on that date matters more than the sale price. Ask for a statement for the date of death. Valuing crypto at the date of death.
Good to know
- Joint accounts. Wealthsimple’s joint non-registered accounts pass to the surviving holder everywhere except Quebec, where they’re held as tenants in common (Wealthsimple). Joint accounts are offered for its managed and self-directed investing, not for Crypto, so assume the crypto belongs to the estate.
- The estates team only settles Wealthsimple accounts; it can’t take in assets from other institutions.
- Questions about the law? Wealthsimple’s own advice: “If you have questions or concerns about estate settlement, please contact a lawyer.”