This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Learn how to manage cryptocurrency in estate planning in England and Wales. This guide explains the legal status of crypto as personal property, wills and inheritance, secure access documentation, tax implications and practical steps for executors and beneficiaries. It helps individuals and families ensure digital assets can be accessed and distributed according to their wishes.
Cryptocurrency ownership has become increasingly common in the United Kingdom. When someone dies owning digital assets such as Bitcoin, Ethereum or other crypto‑tokens, these assets must be dealt with as part of their estate. Unlike traditional assets like property or bank accounts, cryptocurrency is accessed through private keys and seed phrases that are not held by central institutions. This raises legal and practical challenges for executors and beneficiaries. Recent statutory developments in UK law have clarified the status of cryptocurrency as personal property, but careful planning remains crucial. This article explains the legal framework in England and Wales, the role of wills and other estate planning documents, practical steps you could consider to secure access, and common pitfalls to avoid.
What Cryptocurrency Is and How It Fits into an Estate
Cryptocurrency is a form of digital asset that typically exists only in electronic form and operates on decentralised networks. In England and Wales, recent legislation – the Property (Digital Assets etc) Act 2025 – confirms that cryptocurrency and similar digital assets can be treated as personal property. This means they can be owned, inherited and dealt with under estate law in a similar way to traditional property.
Under UK tax law, cryptocurrency held at the time of death forms part of the deceased's taxable estate. It is therefore subject to Inheritance Tax (IHT) on its market value at the date of death. Executors must include this value on the estate account submitted to HM Revenue & Customs (HMRC).
Legal Authority and Executors' Powers
When someone dies, their appointed executors (or administrators if there is no valid will) gain legal authority from the grant of probate to deal with the deceased's assets. However, this legal authority does not automatically translate to practical access for digital assets like cryptocurrency. Access controls such as private keys, seed phrases and two‑factor authentication mean that without precise access information, the estate may be unable to recover the digital assets.
Wills and Digital Asset Planning
Including Cryptocurrency in a Will
A valid will can direct who should benefit from cryptocurrency holdings. Because the 2025 Act recognises crypto as personal property, such assets can be specifically bequeathed to named beneficiaries, or included in general gifting provisions. An explicit reference reduces the risk that these digital assets are overlooked during estate administration.
However, you should not include private keys or seed phrases in your will itself. Once a will is admitted to probate, it becomes a public record, and sensitive access information contained within it could be exposed and misused.
Instead, consider the following complementary documents:
- Digital asset inventory: A confidential list of all wallets, exchanges, account details and storage locations for private keys or seed phrases.
- Letter of wishes: A separate document referenced in the will that explains how executors should access and distribute the digital assets. This stays private and allows for more detailed instructions.
Appointing a Knowledgeable Executor
Given the technical nature of cryptocurrency, some people choose to appoint an executor or co‑executor who is familiar with digital assets. This is not a legal requirement, but it can help ensure that the necessary steps to access and manage crypto holdings are followed accurately.
Practical Steps for Managing Cryptocurrency Access
Create a Secure Record of Holdings
Compile a comprehensive inventory of all digital assets, including:
- The type of cryptocurrency and quantity held.
- Where it is stored (exchange platform or wallet type).
- The location of private keys, seed phrases, passwords and any multi‑factor authentication mechanisms.
This inventory should be stored in a secure place, such as an encrypted digital vault, a solicitor's secure storage, or a safe deposit box. Only trusted persons should know how to access it.
Consider Storage Method and Custody
Different storage methods (centralised exchange vs secure hardware wallet) have implications:
- Centralised exchanges (e.g. Coinbase): Executors may need to provide a death certificate and evidence of authority before the platform transfers assets into estate accounts.
- Self‑custody wallets (hardware or paper wallets): Access depends entirely on having the correct private keys or seed phrases. If these are lost, the asset is effectively irretrievable.
Lasting Power of Attorney
If you become incapacitated, a Lasting Power of Attorney (LPA) for property and financial affairs can authorise a trusted attorney to manage your digital assets on your behalf. Make sure the LPA document explicitly covers digital and crypto assets so that your attorney can take appropriate actions without breaching cryptographic or service‑provider restrictions.
Regular Review and Updating
Estate plans should be reviewed regularly, particularly when there are significant changes to your holdings or the platforms you use. Cryptocurrency markets are volatile and the legal landscape continues to evolve, so updating your inventory and instructions ensures relevance and accuracy.
Risks and Challenges
Risk of Losing Access
Without correct access credentials, cryptocurrency can be permanently lost, even though it is part of an estate. There is no central authority that can reset a password or recover lost private keys, meaning careful documentation is essential.
Tax and Valuation Issues
The estate must report and value cryptocurrency for IHT purposes. Given the price volatility of crypto, establishing an accurate market value at the date of death can be challenging. Executors should keep detailed records of market prices and may need professional valuation advice.
Platform Terms and Privacy
Service agreements with exchanges or wallet providers may include privacy provisions that limit what information or access can be granted post‑mortem. Executors often must satisfy stringent requirements to prove their authority before platforms assist with asset transfer.
Common Questions from our Readers
Can cryptocurrency really be inherited under UK law?
Yes. Under the Property (Digital Assets etc) Act 2025, digital assets such as cryptocurrency are recognised as personal property and can be bequeathed and inherited like other property.
Should I include my private keys in my will?
No. Wills become public documents after probate, and including sensitive information like private keys or seed phrases exposes your digital assets to risk. Use a separate confidential inventory or letter of wishes instead.
What if I have cryptocurrency but no will?
If you die without a will, your estate is distributed according to intestacy rules. Your digital assets, including cryptocurrency, are still part of the estate but may not pass to preferred beneficiaries. Executors or administrators must identify holdings and apply intestacy laws accordingly.
Key Takeaways
Cryptocurrency forms an increasingly significant part of many estates in England and Wales. Thanks to recent legal reforms, digital assets such as crypto tokens are now treated as personal property, meaning they can be included in wills and dealt with through established estate administration procedures. However, effective estate planning requires proactive documentation of access information, secure storage of private keys and seed phrases, clear legal instructions outside the will, and regular review to reflect changes in holdings. Executors must be empowered with the information they need to access and manage these assets while complying with legal obligations, including tax reporting.
