Rabby Wallet for Inheritance Planning: Setting Up Watch-Only Access for Beneficiaries

An estate planner working with a client who holds significant cryptocurrency positions faces a practical problem: how to document digital assets clearly enough that heirs can find and assess them after the client’s death, while keeping private keys secure until that event occurs. Traditional estate documents describe real estate, bank accounts, and investment portfolios by institution and account number. Cryptocurrency requires a different approach because the assets exist on public blockchains, accessible only through cryptographic keys, yet the heir cannot begin moving them without those keys.

The watch-only feature in Rabby Wallet addresses that gap directly. By allowing a user to monitor wallet addresses without holding the corresponding private keys, watch-only access creates a transparent record of digital asset positions—balances, transaction history, and token holdings—that an executor or beneficiary can examine before and after the account holder’s death. Combined with careful planning, contact management within the wallet, and a secure method for eventually passing private keys or recovery phrases to heirs, this approach transforms a cryptocurrency portfolio from an invisible asset into a documented part of the estate.

Why traditional inheritance planning fails for cryptocurrency

Estate planning typically relies on written documentation, institutional custodians, and regulatory frameworks. A will specifies who receives a house. The executor works with a title company. The bank has records of account ownership and will, within limits, cooperate with authorized family members. Cryptocurrency breaks each of these assumptions. There is no institution that “has” the bitcoin or Ethereum—the blockchain maintains an immutable record, but only the holder of the corresponding private key can move the funds. No will or court order can force the creation of a private key if it was never written down or shared.

This creates three immediate planning gaps. First, the heirs may not know the assets exist, because cryptocurrency holdings are often invisible to legal documents and tax returns. Second, even if the heirs know the addresses, they cannot verify control or access the funds without the private keys. Third, the secure storage and eventual transfer of those keys is itself a security problem. Email, cloud services, and bank safe-deposit boxes create different risks: the keys might be compromised before they are needed, found by the wrong person, or lost entirely.

Watch-only wallets bridge the visibility gap without solving the key transfer problem directly. That distinction is important. A watch-only address shows balance, transaction history, and token holdings on-chain, but it cannot approve movement of funds. The heir can see what the estate contains and verify it is real. The account holder retains sole control of how and when the private keys themselves are eventually shared, and through which method.

This separation also reduces the risk of accidental disclosure during the planning process. An estate planner who receives a written list of addresses and balances can draft comprehensive instructions without ever touching a private key. An attorney drafting a will or executor’s letter can reference those addresses without creating a single point of failure in digital form. The security of the assets remains with the account holder alone until the moment when the keys must genuinely be transferred.

Setting up watch-only addresses in Rabby Wallet

A watch-only address in Rabby can be added by clicking “Add Address” and selecting the watch-only option, then entering the public address you wish to monitor. This is the entire transaction required: a single string of hexadecimal characters copied from a blockchain explorer, a transaction receipt, or another wallet application. The address does not need to be in a particular format or stored specially; it is public information by design. Once added, Rabby displays the balance, transaction history, and token holdings for that address across supported networks—Ethereum, Polygon, Arbitrum, Optimism, Base, and others.

For an estate planning context, this means a user can add multiple addresses representing different holdings. A bitcoin address can be monitored through a separate Bitcoin-specific watch-only setup. Ethereum addresses, token positions, and NFT holdings appear in one interface. Layer 2 and sidechain positions become visible in a single portfolio view. The result is a consolidated snapshot of the account holder’s cryptocurrency position without requiring that person to enter any private keys or recovery phrases into Rabby. The data is read-only; even a compromised browser extension cannot move the funds.

The practical workflow begins before any technical setup. The account holder should enumerate all addresses holding significant balances or tokens, across all blockchains and networks where they hold assets. This includes layer 1 addresses on Ethereum mainnet, positions on layer 2 networks, holdings on other chains such as Polygon or Arbitrum if relevant, and separate Bitcoin addresses if Bitcoin is part of the portfolio. For each address, obtain the balance and list any non-standard or valuable tokens. That list becomes the foundation for both the watch-only wallet and the documentation given to the executor or heir.

Once the list is compiled, add each address to Rabby as a watch-only account. Organize them by type—Ethereum holdings in one group, Polygon in another, separate sections for each significant asset. This organization helps the heir understand what is held where and prevents confusion between separate positions. Some account holders may add a note or comment within the contact management feature to label what each address represents: “Primary Ethereum holdings,” “NFT collection,” “Layer 2 trading account,” or similar. These notes do not appear on-chain; they are stored locally within Rabby and aid understanding during the inheritance process.

Using Rabby’s contact management to document beneficiary access

Rabby includes a contact management feature that allows users to create and organize address labels and notes. In an inheritance context, this becomes a planning tool. Create contacts for each significant address, using clear names that will make sense to an executor or heir who may not be deeply familiar with cryptocurrency. Instead of “0x742d35Cc6634C0532925a3b844Bc9e7595f42bE,” use “Primary ETH wallet—main holdings” or similar.

This contact database serves multiple purposes. For the account holder, it clarifies their own understanding of their portfolio. For the heir, it becomes documentation that reduces confusion and prevents incorrect transfers. An executor who sees a list of addresses with descriptions is far more likely to successfully verify and transfer the assets than one handed a list of address strings with no context. The contact notes can also indicate which addresses hold which types of tokens or assets—”Contains staking rewards,” “Layer 2 only—do not send Layer 1 assets,” or “Hardware wallet backup address—do not use for new transactions.”

Some account holders use the contact system to also track the location of private keys or recovery phrases. Rather than storing the keys themselves in Rabby, add a contact that says “Recovery phrase stored in Safe Deposit Box A at [Bank], left with [Executor Name]” or “Private key backed up at [hardware solution].” These are pointers to the actual keys, not the keys themselves. The contact management system has the advantage that it exists within Rabby alongside the watch-only addresses, creating a self-contained reference that the heir can review in one place.

For more complex estates, contacts can also include information about institutional wallet integration. If the account holder uses Safe for multi-signature control, for example, the watch-only setup can monitor the Safe’s address, while the contact notes explain that the assets are multi-sig protected and require coordination with co-signers. Similarly, if assets are held in custody arrangements or through institutional providers, the contact can reference those relationships and point to the documentation or agreements that govern access.

Integrating watch-only monitoring with private key security

Watch-only access solves the visibility problem; it does not solve the key transfer problem. The account holder must still decide how and when to share the private keys or recovery phrases necessary for the heir to eventually take control. This decision is among the most important in cryptocurrency inheritance planning, and it cannot be separated from the watch-only setup.

The simplest approach for smaller portfolios is to write down recovery phrases on paper, store them in a physical safe-deposit box or home safe, and include clear instructions in a will or executor’s letter describing where the keys are and how to use them. The watch-only Rabby wallet becomes the evidence that the keys are worth finding. The heir sees the addresses, verifies the balances on-chain, and then retrieves the keys from the physical location. This method separates the knowledge of what assets exist from the ability to access them, and it does not rely on digital storage or third parties.

For larger or more complex portfolios, some account holders use a combination of approaches. Private keys might be split among multiple storage locations, with recovery instructions distributed to multiple trustees or held by an attorney. Some keys could be protected by multi-signature schemes, where the account holder and a spouse or trusted advisor each hold one key, requiring both signatures to move funds. In these cases, the watch-only setup in Rabby allows the executor to monitor the assets while waiting for the legal process to establish authority and gather the keys from their dispersed storage locations.

A critical practice is to test the inheritance process before it is needed. The account holder should verify that the watch-only addresses show the correct balances, that the contact notes are clear enough for someone unfamiliar with the portfolio to understand, and that the method of storing and accessing private keys actually works. An executor should ideally be brought in to rehearse the key retrieval and understand the process. This testing prevents surprises when the actual transfer occurs and often reveals missing information or unclear instructions that can be corrected while the account holder is alive.

Hardware wallet integration also plays a role in this planning. If the account holder uses a Ledger, Trezor, or other supported device, the watch-only Rabby wallet can monitor the corresponding addresses without requiring the hardware device itself to be passed to the heir immediately. The heir can see the assets exist, while the hardware device remains in secure storage until the account holder’s death. Only then does the device and its PIN or passphrase need to be transferred according to the predetermined plan.

Documentation and legal framework for cryptocurrency inheritance

A watch-only Rabby wallet and its contact notes are important tools, but they are not legal documents. An executor or heir still needs clear legal authority to transfer the assets. In many jurisdictions, cryptocurrency holdings are not explicitly addressed in estate law, and courts may not be familiar with how blockchain assets are inherited. This uncertainty makes proper documentation critical.

The account holder should prepare a detailed letter of instruction to be delivered with their will or separately to the executor. This letter should include: a complete list of all cryptocurrency addresses and their corresponding chains or networks, the approximate balances or types of assets held at each address (based on the watch-only portfolio), the location and method for accessing private keys or recovery phrases, and step-by-step instructions for verifying and transferring the assets. It should also include the address of the executor’s own wallet where the assets should be transferred, and instructions for handling any complex holdings such as staking positions or NFTs that may have special considerations.

Some wealthy individuals consult with an attorney who specializes in digital asset inheritance to prepare formal instructions or even a separate “digital assets will” that specifically addresses cryptocurrency. This document can be referenced in the main will and provides the executor with detailed guidance that goes beyond the legal authority of a standard will. If you are get started with watch-only monitoring as part of your inheritance planning, the letter of instruction should walk through how to access and interpret the Rabby wallet itself.

Tax implications should also be documented. In most jurisdictions, inherited assets receive a “step up in basis,” meaning the heir’s cost basis for tax purposes is the fair market value at the date of death, not the account holder’s original purchase price. This is a significant benefit, but it only applies if the inheritance is properly documented and reported. The executor should be instructed to record the value of the cryptocurrency holdings as of the date of death, using blockchain data and market prices. The watch-only portfolio in Rabby provides a clear snapshot of what existed at that moment.

Multi-signature and institutional approaches for larger estates

For accounts holding very large amounts or held by families or organizations rather than individuals, watch-only access can be combined with multi-signature or institutional wallet solutions. Rabby supports integration with Safe, a multi-signature smart contract platform, as well as institutional custody solutions such as Fireblocks and Cobo. These approaches allow the account holder to authorize multiple signers—such as a spouse, trustee, or co-executor—without giving any single person complete control.

A Safe wallet, for example, can be configured to require signatures from the account holder plus one or both of their children, or the account holder plus a professional trustee. When the account holder dies, the remaining signers can authorize transfers without waiting for probate or legal authorization, because the smart contract already defines the rules. The watch-only setup in Rabby allows the heirs to monitor the Safe’s balance while the multi-signature structure ensures that no single person can move the funds unilaterally.

Institutional custody solutions like Fireblocks or Cobo are designed specifically for this use case. They provide professional storage, insurance, and defined access controls. An institution holding crypto assets can provide a beneficiary with read-only access to verify what is held, while keeping the actual keys in secure custody. When properly documented in the estate plan, the institution will transfer the assets to the beneficiary upon presentation of a death certificate and proper legal authority. This approach trades some independence—the heir no longer has direct blockchain control—for professional security and a clear process.

Regardless of which approach is chosen, the watch-only Rabby wallet serves the same function: it creates a transparent record of what is held and where. The heir can verify that the described assets actually exist on-chain before engaging with the more complex process of actually accessing them.

What to communicate to executors and beneficiaries

An executor or beneficiary who has never used cryptocurrency may find a Rabby wallet confusing if not properly guided. The account holder should prepare a brief explanation covering: what a blockchain address is and why there can be multiple addresses holding different assets, how to verify balances using a blockchain explorer, what the watch-only feature means (they can see the balance but cannot move the funds), and where to find the private keys when the time comes to actually transfer the assets.

It is helpful to include a screenshot or printed view of the Rabby wallet showing the addresses and balances, along with a simple guide to interpreting the interface. Explain that Ethereum addresses can hold multiple tokens, that layer 2 networks like Polygon are separate from Ethereum mainnet, and that Bitcoin requires a separate wallet application entirely. These distinctions seem obvious to someone familiar with cryptocurrency, but they are sources of confusion and mistakes for heirs approaching the process for the first time.

Some account holders also provide a glossary of cryptocurrency terms relevant to their own portfolio. If they hold NFTs, explain what an NFT is and where to find the collection in the wallet. If they stake assets or farm yield, explain the current arrangements and what happens to rewards when the account is transferred. If they hold tokens with governance rights or receive airdrops, explain how those should be handled. This background reduces the chance that the heir sells something too early, sends a transfer to the wrong address, or loses assets through confusion.

Finally, the account holder should designate someone—ideally the executor or a trusted family member—as the primary contact for technical questions during the process. This might be the adult child who is most comfortable with technology, a professional advisor, or a specialized service. Giving the executor permission to contact this person and providing contact information removes the barrier of not knowing where to turn if something goes wrong.

The limits of watch-only planning and future considerations

Watch-only monitoring in Rabby is a practical tool for inheritance planning, but it has real limitations that should be understood. It shows only the balances and transaction history that are visible on-chain; it does not capture assets held in custodial arrangements, on centralized exchanges, or in private smart contracts. If the account holder has funds on Coinbase, Kraken, or another exchange, those accounts require separate documentation and planning. Similarly, assets wrapped or bridged to other chains may show on-chain but may have wrapped versions that should also be documented.

Watch-only access is also static. If the account holder regularly moves assets between addresses or changes holdings, the will and letter of instruction become outdated. Unlike a bank account, where the executor simply contacts the bank, cryptocurrency holdings require the executor to understand the current state of the account holder’s portfolio. This argues for periodic review and updating of the watch-only setup and related documentation—perhaps annually or whenever significant changes occur.

The broader challenge is that cryptocurrency inheritance law is still developing. Courts have not yet settled many questions about digital asset ownership, access after death, and tax treatment. An approach that is sound today may need revision as law and regulation evolve. The account holder should periodically review their plan with an attorney familiar with both cryptocurrency and estate planning, rather than treating it as a one-time setup.