How to Challenge a Will With Cryptocurrency

Cryptocurrency and other digital assets have become increasingly prevalent among estates. Historically, English law did not clearly treat cryptocurrencies as property, which complicated their inclusion in wills and estate administration. However, recent legal reforms confirm that cryptoassets such as Bitcoin or Ethereum are capable of forming part of a deceased person's estate and can be inherited, transferred, or otherwise dealt with like traditional property. This article explains how to challenge a will that includes cryptocurrency, the legal principles involved, steps you might take, applicable time limits, and practical considerations under current law in England and Wales.

Understanding Cryptocurrency as Property

The Property (Digital Assets etc) Act 2025 has established that digital assets, including cryptocurrency, can qualify as personal property under English law. This means they can be included in wills and are capable of being inherited, transferred, or used in other legal contexts such as probate and disputes. Prior to this reform, uncertainty existed over whether cryptocurrency holders could treat these assets as part of their estate without bespoke legal arrangements.

Recognition as property aligns cryptocurrency with conventional estate assets. This step helps provide clear legal basis for the inclusion of cryptocurrency in wills and supports the legal rights of executors and beneficiaries in inheritance and disputes.

How Cryptocurrency Is Included in a Will

Cryptocurrency must be addressed explicitly in estate planning to ensure it forms part of a deceased person's estate and is distributed according to their wishes. Key considerations include:

• Inclusion in the Will: Wills should identify which cryptocurrency holdings the testator owns and name the beneficiaries entitled to them.
• Access Instructions: Because access depends on private keys or recovery phrases, these cannot safely be written in the will itself (which becomes public when it is admitted to probate). Instead, access information should be provided separately in a secure document or letter of wishes.
• Executor Authority: The will should authorise the executor to access, manage, and distribute cryptocurrency, while complying with relevant laws such as the Computer Misuse Act 1990 and privacy obligations.
• Digital Inventory: A detailed digital inventory listing all wallets, exchanges, accounts, and access credentials helps reduce uncertainty and supports executors in locating and administering these assets.

Properly planning for cryptocurrency reduces the likelihood of disputes over entitlement or access later on.

Legal Grounds for Challenging a Will

Challenging a will in England and Wales that involves cryptocurrency follows the same legal principles as other will disputes. The main grounds include:

1. Invalid Execution

A will may be invalid if it does not comply with the formal requirements of the Wills Act 1837 (for example, failure to sign in the presence of witnesses). An invalid will may be declared void or replaced by an earlier valid document.

2. Lack of Testamentary Capacity

If evidence shows that the deceased lacked mental capacity when making the will, the document - including provisions for cryptocurrency - can be challenged.

3. Undue Influence

A will may be set aside if a party exerted undue pressure on the testator. This can be relevant in estates where significant cryptoassets are involved, given their potentially high value.

4. Fraud or Forgery

If the will has been forged or obtained by fraud, it can be challenged on these grounds.

5. Failure to Provide Reasonable Financial Provision

Under the Inheritance (Provision for Family and Dependants) Act 1975, certain dependants may claim that the will fails to make reasonable financial provision for them. This is not a challenge to validity, but a claim for provision from the estate.

These grounds apply irrespective of the specific nature of assets, including cryptocurrency.

Practical Steps to Challenge a Will With Cryptocurrency

Once you have considered the legal basis for a claim, here are practical steps typically involved in challenging a will in the context of cryptocurrency:

Step 1: Assess Your Eligibility

You generally need to be someone with a recognised interest in the estate (for example, a spouse, civil partner, child, or dependant) to bring a claim under the Inheritance Act or to challenge validity.

Step 2: Seek Legal Advice Early

Disputes involving cryptocurrency are inherently complex due to issues of valuation, access, and potential volatility. Specialist legal advice helps ensure you meet strict procedural requirements and understand valuation and tax issues.

Step 3: Restrict Probate With a Caveat

If probate has not yet been granted, you can register a caveat at the Probate Registry. This prevents the executor from obtaining probate for up to six months, giving you time to prepare your claim.

Step 4: Gather Evidence

Collect documents supporting your challenge, including the will, digital asset records, valuation reports, and any evidence that supports your grounds for contesting the will. For cryptocurrency, this may include wallet records and documentation of holdings.

Step 5: Consider Mediation or Negotiation

Many disputes are resolved without a full court hearing. Mediation can be less costly and quicker, although not all cases are suitable.

Step 6: Issue Court Proceedings

If a negotiated solution is not possible, your solicitor can issue proceedings in the appropriate court. This may involve hearings to determine validity, quantum of assets including cryptocurrency, and any provision under the Inheritance Act.

Time Limits

• Probate Caveat: A caveat can delay the grant of probate for up to six months. This period can be critical for preparing claims.
• Inheritance Act Claims: These claims should generally be started within six months of the grant of probate. If this deadline is missed, the court has a discretion to allow late claims in limited circumstances.
• Longer‑Term Claims: Other contentious probate claims (for example, challenging validity) may be commenced within longer statutory periods, but delay can weaken the evidence and prospects of success.

Risks and Challenges

Including and challenging cryptocurrency in an estate raises specific issues:

• Valuation Volatility: Cryptocurrency values fluctuate sharply. Determining the value at the date of death (for taxation and distribution) can be complex.
• Access Difficulties: Without access to private keys or seed phrases, assets may be inaccessible. Missing access credentials can make it impossible for executors to transfer cryptocurrency, even if the will directs it.
• Public Record Risks: Wills become part of the public record once probate is granted. Sensitive details (like access instructions) should never be included directly in the will.
• Technical Complexity: Executors or beneficiaries may lack the expertise to manage or transfer cryptocurrency, which can prolong disputes.

Common Questions from our Readers

Can a will that leaves cryptocurrency to someone be invalid if the crypto is not found?
A will is not automatically invalid because cryptocurrency holdings are unknown or inaccessible. However, missing access information can affect how the estate is administered and may lead to disputes over entitlement or valuation.

Is cryptocurrency subject to inheritance tax?
Yes, cryptocurrency is treated like other assets for inheritance tax purposes. Its value at the date of death is included in the estate calculation.

Should I write private keys in my will?
No. Because wills become public documents, private keys should be stored securely elsewhere and referenced separately in a confidential document.

Key Takeaways

Challenging a will that includes cryptocurrency in England and Wales requires an understanding of both contentious probate principles and the practical realities of digital assets. Cryptocurrency is now recognised as property under the Property (Digital Assets etc) Act 2025, which allows it to be included in wills and estates. Challenges can be based on traditional grounds such as invalid execution, lack of capacity, undue influence, fraud, or failure to make reasonable provision. Procedural steps such as lodging a caveat, gathering evidence, and seeking specialist legal advice are crucial. Cryptocurrency presents additional valuation, access, and technical challenges that should be addressed with careful planning. Claims under the Inheritance (Provision for Family and Dependants) Act 1975 generally must be commenced within six months of the grant of probate. Understanding these factors helps beneficiaries and executors navigate disputes involving cryptocurrency effectively.