How to Challenge a Will With Digital Assets

As digital technologies evolve, so too does the nature of personal estates. In addition to traditional property, money and physical possessions, many people now hold significant digital assets - such as cryptocurrencies, digital wallets, online investment accounts, domain names, intellectual property, cloud‑stored files and other assets that exist only in digital form. These digital holdings can form part of a deceased person's estate and may become subject to will challenges and disputes under the law of England and Wales. This article explains what digital assets are, how they are treated in wills and probate, the legal grounds for challenging a will that deals with digital assets, step‑by‑step procedural guidance, key time limits and risks, and answers common questions that arise. The focus is on clear, practical explanations for both non‑lawyers and solicitors.

What Are Digital Assets?

Digital assets are broadly defined as assets that exist only in a digital environment and have identifiable ownership or value. Recent legislative change in the UK has formally recognised certain digital assets - including crypto‑tokens and other tokenised assets - as a distinct category of personal property. This means they can now be inherited, sold, recovered and included within estate proceedings in the same way as physical property or financial investments. 

Examples of digital assets include:

• Cryptocurrencies such as Bitcoin or Ethereum.
• Digital wallets and online accounts holding value.
• Non‑fungible tokens (NFTs) and tokenised securities.
• Domain names, websites and monetised online content.
• Cloud‑stored business or personal files and intellectual property rights.
• Online investment profiles or digital bank accounts. 

Some digital items - such as social media profiles or email accounts - may not have proprietary value in themselves but can still be significant components of a person's digital estate and raise complex issues on access and transfer after death. 

How Digital Assets Fit Into Wills and Probate

Digital assets can form part of a deceased person's estate if they have recognised proprietary value and legal ownership. The Property (Digital Assets etc) Act 2025 confirms that many digital assets are personal property capable of being dealt with in a will. 

However, unlike traditional assets, digital asset distribution faces practical and legal challenges:

• Identification: Executors may not be aware of all digital assets, especially if they are encrypted or stored behind passwords. 
• Access: Digital assets may be protected by service provider terms or data protection laws, meaning executors or beneficiaries cannot access them without proper authority. 
• Valuation and control: Some digital holdings fluctuate significantly in value and require specialist valuation, particularly for Inheritance Tax purposes. 
• Transferability limitations: The terms of service of many digital platforms may restrict the transfer of accounts or content to successors. 

Given these issues, disputes can arise over whether and how digital assets should be included, managed or distributed under a will.

Legal Grounds for Challenging a Will Involving Digital Assets

Challenging a will with digital assets uses the same legal principles that apply to traditional estate contests, but digital features can influence both how disputes emerge and how they are resolved.

1. Validity of the Will

A will that attempts to dispose of digital assets can be contested if it is legally invalid. General grounds for contesting validity include:

• Lack of testamentary capacity: Arguing that the deceased did not understand their estate or the legal effect of the will when it was made.
• Lack of knowledge and approval: Claiming the deceased did not know or approve the will's contents, including digital asset clauses.
• Undue influence or coercion: Alleging another party pressured or manipulated the deceased in making the will.
• Improper execution: A will must be in writing, signed by the testator and witnessed by two independent witnesses to be valid under the Wills Act 1837. Any failure in formal requirements can render it invalid. 

Electronic wills currently do not have formal statutory recognition in England and Wales, and any attempt to rely on entirely digital execution without satisfying statutory formalities is vulnerable to challenge. 

2. Claims Under the Inheritance (Provision for Family and Dependants) Act 1975

Even where a will is valid, a person may argue that insufficient provision has been made for them from the estate, including from digital assets that form part of the estate's value. Eligible claimants - such as spouses, children or dependants - can apply to the court for reasonable financial provision under the 1975 Act. This can include claims against both traditional and digital assets if they contribute to the estate's overall value.

3. Equitable Claims and Proprietary Interests

In some cases, a person may claim they were led to expect certain digital assets - for example, access to a digital business or online platform - and that they relied upon those expectations. Although less common, equitable remedies such as proprietary estoppel may be relevant in rare circumstances where representations were made about digital holdings.

Practical Steps for Challenging a Will With Digital Assets

Step 1: Establish the Nature and Location of Digital Assets

A key early task is to identify all digital assets and determine whether they are recognised as personal property under current law. Executors and potential challengers should:

• Check device storage, digital wallets, service accounts and online investment platforms.
• Secure usernames, passwords and private keys for cryptocurrency or other encrypted holdings.
• Review the deceased's will and any associated digital asset inventory or “letter of wishes”. 

Without clear access information, valuable holdings can become effectively lost, even where legal entitlement exists.

Step 2: Review the Will's Treatment of Digital Assets

Consider whether the will adequately addresses digital assets, including:

• Whether specific digital asset clauses exist.
• Whether executors are authorised to access accounts and data.
• Whether beneficiaries are clearly identified. 

Ambiguities or omissions in the will may form part of a challenge, particularly if they lead to real detriment.

Step 3: Preserve Legal Position Promptly

If you intend to challenge a will, acting quickly is essential:

• Consider lodging a caveat with the Probate Registry before the grant of probate is issued to prevent the estate being administered while a dispute is prepared.
• Preserve evidence such as correspondence, access records and technical logs that demonstrate ownership or control of digital assets.

Time limits apply under English law for certain types of probate challenges. For example, claims under the Inheritance Act generally must be brought within six months of the grant of probate. 

Step 4: Engage Specialized Legal and Technical Advice

Digital asset disputes often require both legal and technical expertise:

• Solicitors experienced in wills, probate and digital asset law can advise on legal standing and strategy.
• Technical specialists may assist with accessing encrypted data or valuing digital holdings.

Digital complexities - such as blockchain technology underlying cryptocurrencies - can demand specialist insight.

Step 5: Explore Alternative Dispute Resolution

Mediation or negotiation may resolve disagreements without full court proceedings. Given the sensitivities around digital access and privacy, consensual resolution may be preferable and less costly.

Step 6: Commence Court Proceedings if Necessary

If alternative resolution fails, court proceedings may be issued in the Chancery Division of the High Court or appropriate county court, depending on the grounds and value of the estate. The court will assess legal validity, evidence and the extent of digital asset holdings.

Risks and Complications

Challenging a will involving digital assets carries several risks:

• Access barriers: Service provider restrictions and privacy laws may impede access even where legal entitlement exists.
• Valuation challenges: Digital asset values can fluctuate widely and lack established valuation protocols, complicating estate administration.
• Complex evidence: Proving ownership, access rights or testator intent regarding digital assets can require detailed technical and factual evidence.
• Costs and delays: Disputes over digital assets can increase legal costs and delay estate distribution.

In some cases, failing to act quickly can result in digital assets being overlooked or permanently inaccessible.

Common Questions from our Readers

Are all digital assets automatically included in a will?
Not necessarily. Only assets recognised as property and properly identified can be included, and access may depend on technical and legal arrangements made before death. 

Can I challenge an online will (digital will)?
Yes, like any will, a digital will may be challenged on conventional grounds such as lack of capacity, undue influence or improper execution. However, fully electronic wills currently lack statutory recognition in England and Wales and are more vulnerable to dispute. 

What happens if private keys for crypto are lost?
If private keys or passwords are lost, executors may be unable to access those assets, potentially rendering them irrecoverable. Keeping secure records and appointing someone with technical knowledge can help. 

Key Takeaways

Challenging a will that involves digital assets under the law of England and Wales involves the same fundamental legal principles as other will contests but adds layers of technical and practical complexity. Digital assets are now formally recognised as property under UK law and can form part of an estate. Identifying, accessing, valuing and distributing these assets requires careful planning and specialist knowledge. Grounds for challenge include will validity arguments and statutory claims for inadequate provision. Acting promptly, securing evidence, engaging appropriate legal and technical expertise, and understanding time limits are essential steps in protecting rights and resolving disputes involving digital asset estates.