How to Include Cryptocurrency in a Will

Cryptocurrency and other digital assets are increasingly common components of personal estates. Unlike traditional assets such as cash or property, crypto holdings pose unique challenges in estate planning because they are stored in digital wallets, often without formal custodian structures, and access hinges on private keys or recovery phrases. Failing to make clear provisions for cryptocurrency within a will can result in assets being permanently inaccessible, lost to beneficiaries, or difficult to administer during probate. This guide explains how to include cryptocurrency in a will under the legal framework of England and Wales, practical steps executors and testators can take, tax and valuation considerations, and common issues that arise. 

What Is Cryptocurrency in the Context of a Will?

Cryptocurrency refers to digital or tokenised forms of value maintained on a blockchain or digital ledger, such as Bitcoin or Ethereum. Under recent UK law, including the Property (Digital Assets etc) Act 2025, cryptocurrency and similar cryptoassets are formally recognised as personal property that can be owned, inherited, transferred and recovered under legal processes. This recognition gives stronger legal clarity for including cryptocurrency in estate planning alongside traditional assets. 

Cryptoassets differ from conventional property because they lack:

• A central registrar or account provider that automatically facilitates transfer on death.
• Institutional probate procedures analogous to those for bank accounts or land registry.
• Standard beneficiary designation mechanisms within custody platforms. 

These distinctions make advance planning essential.

Why Cryptocurrency Must Be Addressed in a Will

Without explicit instructions:

• Executors may be unaware of the existence or location of crypto holdings.
• Cryptocurrency can remain inaccessible if private keys or recovery phrases are lost or undisclosed.
• Digital wallets may effectively be “lost” if the technical access information cannot be found.
• Assets may be overlooked during estate valuation and probate, jeopardising their inclusion in tax calculations and distributions. 

Cryptocurrency is subject to Inheritance Tax as part of the deceased's estate. Its value at the date of death is added to the estate total when calculating tax liabilities, meaning a failure to account for crypto can affect overall tax planning and distributions under English and Welsh law. 

Legal Framework in England and Wales

Recognition as Property

The Property (Digital Assets etc) Act 2025 establishes that certain digital assets, including cryptocurrencies and non‑fungible tokens (NFTs), are capable of being treated as personal property. This statutory change aligns digital assets with tangible and intangible property classes, allowing them to be owned, inherited and dealt with in wills and probate proceedings. 

Executors' Authority

A will must authorise executors (personal representatives) to manage digital assets. Without clear authority, some providers may refuse access on contractual or technical grounds. The will should therefore include wording granting executors the power to locate, manage, access and distribute cryptoassets. 

Confidentiality and Criminal Law

While a will can direct distribution, you should not include private keys, seed phrases, recovery codes, passwords or PINs in the document itself. Wills become part of the public record once probate is granted, and disclosure of such sensitive information could expose assets to theft or misuse. Instead, access information should be held separately in secure documentation or with a professional custodian. 

Step‑by‑Step: Including Cryptocurrency in a Will

1. Make a Digital Asset Inventory

Prepare a detailed inventory of all cryptocurrency holdings, including:

• Names and types of tokens (e.g. Bitcoin, Ethereum).
• Wallet addresses or exchange accounts where holdings are stored.
• Location of private keys, seed phrases, hardware wallets or secure storage.
• Notes on multi‑signature requirements or custodial arrangements. 

This inventory should be kept securely and updated regularly but not included in the will itself due to privacy concerns.

2. Draft Clear Will Provisions

Your will should:

• Explicitly identify cryptocurrency as part of your estate.
• Specify beneficiaries who should inherit the assets.
• Grant legal authority to executors to access, manage and distribute the holdings.
• Reference an external digital asset schedule or separate secure document for access details. 

Example wording could be:

“I give all my digital assets, including but not limited to my cryptocurrency holdings (such as Bitcoin, Ethereum and other crypto‑tokens), to [Beneficiary's name], and I authorise my executors to take all necessary steps to access, manage and transfer these assets in accordance with the accompanying digital asset schedule.” 

3. Provide Secure Access Instructions

Store access information - such as private keys, seed phrases and password hints - in a secure document outside the will. This could be:

• A password‑protected digital file.
• A sealed letter of wishes held with your solicitor.
• A secure password manager with instructions for executors. 

The will itself should refer to this separate document rather than containing sensitive details.

4. Consider a Digital Executor

Cryptocurrency and other digital assets can involve technical complexities. Where appropriate, appoint a digital executor with specific responsibilities for managing and transferring digital assets, working alongside your primary executor. This person may have the technical expertise to handle wallets, exchanges, custodial platforms and blockchain transactions. 

5. Keep Records and Update Regularly

Because cryptocurrency holdings frequently change in value and location, review and update your inventory and access instructions whenever you make significant changes to your holdings.

Probate Administration and Tax Considerations

Valuation for Probate

Executors must identify and value cryptocurrency assets at the date of death for probate and tax purposes. This is similar to other assets but can involve additional steps such as blockchain analysis or consulting brokers. 

Inheritance Tax and Other Liabilities

Cryptocurrency assets are included in the overall estate value for Inheritance Tax purposes. If the total estate exceeds the nil‑rate band (£325,000, with potential additional allowances), tax may be payable at 40% on the excess. Executors should ensure正确 valuation and compliance with HMRC reporting. 

Additional Taxes

When executors sell cryptocurrency after death to distribute proceeds, Capital Gains Tax may also arise, depending on the timing and how disposal is treated under prevailing tax rules. Detailed records help manage these liabilities and avoid disputes.

Risks and Common Issues

Loss of Access

Cryptocurrency that cannot be accessed due to missing private keys or seed phrases is generally unrecoverable. Without these credentials, holders - including beneficiaries - cannot move or spend the assets. 

Platform Terms and Control

Not all platforms treat digital assets the same. Some exchanges operate under strict contractual terms that limit transfer or access after death. Including clear instructions in your will and separate documentation strengthens the executors' ability to comply with provider requirements. 

Executor Challenges

Executors unfamiliar with blockchain technology may struggle to locate or transfer assets. Appointing a digital executor or specialist can mitigate this risk and support efficient estate administration. 

Common Questions

Can I name a beneficiary directly for specific crypto holdings?
Yes. The will can specify that certain tokens or wallet holdings are to be transferred to named beneficiaries. Ensure this is accompanied by clear access instructions in a separate secure schedule. 

Should I put my private keys in the will?
No. Wills become public when probate is granted. Including sensitive security credentials such as private keys or seed phrases could expose your assets to theft. Keep such information separate and secure, and refer to it in a secure schedule. 

What if I die without mentioning my cryptocurrency?
If cryptocurrency is not addressed, executors may not know it exists or may fail to locate access details. The assets could be unclaimed, lost, or distributed under residuary terms without the clarity that specific instructions provide. 

Key Takeaways

Cryptocurrency can and should be included in wills in England and Wales so that it passes according to your wishes and is properly administered during probate. Because digital assets are now legally recognised as personal property:

• Identify and catalogue your crypto holdings.
• Draft clear will provisions granting executors authority.
• Store access details securely outside the will.
• Consider appointing a digital executor for technical handling.
• Keep documentation up to date.

These steps reduce the risk of digital assets becoming inaccessible, mitigate tax and probate complications, and help executors and beneficiaries manage a modern, digital estate confidently.