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 include cryptocurrency such as Bitcoin and other digital assets in estate planning in England and Wales. This comprehensive guide explains legal status, will drafting, access planning, executor roles, taxation and practical steps to ensure crypto holdings are safely passed on to beneficiaries.
Cryptocurrency and digital currencies are increasingly held alongside traditional assets such as property, pensions and savings. In England and Wales, recent legal developments confirm that digital assets like cryptocurrency can form part of a person's estate and be passed on when they die. However, because of the way these assets are accessed and stored, they pose unique challenges for estate planning that many people do not face with conventional assets. This guide explains the legal position on cryptocurrency as part of estate planning, sets out practical steps to include crypto in your plans, and highlights key issues including access, taxation, documentation and executor responsibilities.
What Is Cryptocurrency for Estate Planning Purposes?
Cryptocurrency refers to digital assets that use cryptographic technology on distributed ledgers, such as Bitcoin, Ethereum and other tokens. In estate planning, cryptocurrency is treated as an asset capable of being owned, transferred, gifted or bequeathed. Under the Property (Digital Assets etc) Act 2025, digital assets including cryptocurrency are expressly recognised as personal property in the UK. This gives greater legal certainty that these assets can be inherited like traditional property.
Key Legal Status
- Recognised as personal property: Crypto and similar digital assets now fall within UK property law, meaning they can be included in wills and trusts, and are capable of being owned, inherited and recovered in relevant legal actions.
- Subject to probate and taxation rules: Cryptocurrency forms part of the deceased's estate and must be declared for probate and for Inheritance Tax purposes in the usual way.
Why You Should Include Cryptocurrency in Your Estate Plan
Cryptocurrency differs materially from physical assets and even most financial assets held in banks:
- No central authority: There is no bank or institution that automatically transfers or manages crypto on death. Without clear instructions, executors may struggle to locate or access these assets.
- Access depends on keys and wallets: Ownership of crypto depends on private keys or seed phrases. If these are lost or unknown, the asset can be lost forever.
- Executors need authority and information: Executors must have legal authority in a will and practical access information to manage and transfer crypto holdings.
Step‑by‑Step: Including Cryptocurrency in Estate Planning
1. Identify and Document Your Cryptocurrency Holdings
Start by creating a comprehensive inventory of all crypto holdings:
- List each type of cryptocurrency and amount held.
- Record where the crypto is stored: self‑custodied wallets (hardware or software), exchange accounts and custodial services.
- Note whether the wallet is multisignature or requires special access arrangements.
- Indicate where private keys, recovery phrases, PINs or password manager access can be found.
Documenting holdings is essential because many executors may not be familiar with crypto or aware of its existence if not clearly recorded.
2. Do Not Include Private Keys in the Will
Because wills become public documents once probate is granted, you should not include private keys, recovery phrases or passwords directly in a will. If this information is public, thieves could use it to steal the assets. Instead:
- Store access details securely (such as in a sealed letter of wishes, a safety deposit box, or a password manager with emergency access).
- Keep a note in the will referencing where this secure information can be found without disclosing it in the will itself.
3. Appoint a Digital Executor or Trustee
In addition to naming one or more executors in your will, consider appointing someone with technical understanding of cryptocurrency as a digital executor or trustee. This person can assist the primary executors in locating and accessing crypto assets.
Whether this digital executor is named formally in the will or through a separate letter of wishes, select someone who is trustworthy and capable of managing technical information securely.
4. Draft Clear Will Clauses
A will that includes cryptocurrency should:
- Explicitly identify the cryptocurrency holdings as part of the estate.
- Give executors authority to access, manage and distribute the assets.
- Refer to the secure location of access information and any separate digital inventory.
- Specify how the crypto should be distributed - for example, gifted to named beneficiaries, held on trust for specific purposes, or sold on behalf of the estate.
Clear wording reduces the risk of confusion or dispute during estate administration.
5. Plan for Tax and Valuation
Cryptocurrency is part of the taxable estate:
- For Inheritance Tax (IHT), the value of all crypto holdings at the date of death is included when calculating the estate's value.
- If crypto is sold to pay taxes or distributed to beneficiaries, Capital Gains Tax (CGT) may also arise depending on the circumstances. Accurate records and valuations at the date of death are essential.
Executors should be informed about these taxation issues so they can prepare accurate probate accounts and settle any tax liabilities.
6. Review and Update Regularly
Cryptocurrency holdings and technology change rapidly. Review your estate plan and digital inventory:
- After significant changes in your holdings
- When you open or close wallets or exchange accounts
- After major market or personal financial events
Regular updates help ensure that the plan remains accurate and executable.
Practical Challenges and Legal Considerations
Exchange and Wallet Provider Policies
Some cryptocurrency exchanges and wallet providers have their own procedures for dealing with accounts after death. Even with a will, executors may need to satisfy the platform's requirements for identity verification and proof of authority. Be prepared for possible additional documentation or delays.
Legal Authority and Access
While the will gives executors legal authority under probate law, it may not automatically grant access under platform terms or technological requirements. A thoughtful combination of legal documentation and practical access planning is crucial.
Data Protection and Privacy
Handling sensitive information such as wallet access information and personal data requires compliance with privacy laws. Executors must balance access needs with appropriate confidentiality.
Common Questions
Can cryptocurrency be inherited in the UK?
Yes. Under UK law, cryptocurrency is recognised as personal property that can be included in wills, inherited and transferred, provided it is properly documented and referenced in estate planning documents.
Should I include private keys in my will?
No. Because wills become public documents after probate, private keys, seed phrases and passwords should never be included directly in the will. Rather, store them securely and reference their location.
Do executors need special skills to manage crypto assets?
It is often advisable to appoint a digitally capable executor or trustee to assist with technical aspects of accessing and transferring cryptocurrency.
How is cryptocurrency taxed on death?
Cryptocurrency is included in the estate for Inheritance Tax. Valuation at the date of death determines the taxable estate, and any subsequent sale of assets may involve Capital Gains Tax responsibilities for the estate.
Final Thoughts
Including cryptocurrency in estate planning is essential for safeguarding digital wealth and ensuring beneficiaries can access and benefit from it. In England and Wales:
- Cryptocurrency is legally recognised as property that can be inherited.
- Estate planning should include clear documentation, secure access planning, and appropriately drafted will clauses.
- Executors must be given authority and practical guidance without exposing sensitive access information.
- Taxation and valuation issues must be understood and managed by those handling the estate.
A well‑structured plan reduces risk, supports efficient estate administration, and preserves both financial and sentimental value for beneficiaries.
