Written by Marcia Howards, Senior Associate Solicitor · SRA-regulated · Last reviewed 4 March 2026
Short answer: your cryptocurrency can be inherited in the UK – but only if your executors can access the wallets or exchange accounts (i.e., the private keys/seed phrases or verified probate documents). Otherwise, funds may be locked forever.
Updated for 2026: UK law now recognises digital assets (including crypto) as personal property, strengthening inheritance and recovery rights.
Who this guide is for: crypto holders, executors, and families who want a clear, solicitor‑written plan to pass on (or recover) Bitcoin, Ether, NFTs and other tokens safely and tax‑efficiently across England & Wales.
Prefer to speak to someone now? Call our team on +44 (0)20 3588 3500, or press the Enquire button at the top of this page and we will call you back.
Is Crypto Part of Your Estate in the UK?
- Yes. Digital assets, including crypto‑tokens, are now confirmed as personal property under UK law (Property (Digital Assets etc) Act, Royal Assent Dec 2025), building on the Law Commission’s digital‑assets work. This gives clearer legal footing for inheritance, recovery and remedies.
- Earlier legal statements and court decisions already treated many cryptoassets as property under English private law, a position now reinforced by statute.
Why this matters: executors and courts can treat crypto like other property (subject to unique access issues), enabling inheritance, claims against wrongdoers, and recovery in insolvency/bankruptcy.
Tax Basics at Death
- Inheritance Tax (IHT): HMRC treats cryptoassets as property for IHT — they form part of your estate’s value.
- Capital Gains Tax (CGT): No CGT is charged at the moment of death; assets are re‑based to market value at the date of death. CGT may arise on later disposals by executors or beneficiaries.
Practical tip: keep a dated valuation (exchange screenshots or price feeds) at the date of death for each asset/wallet to support IHT/CGT records.
The #1 Risk: Access to Keys
Blockchains don’t recognise wills or death certificates — they only respond to a valid cryptographic signature. That means heirs need control of the private keys/seed phrases (or exchange‑facilitated transfers after probate). Losing keys usually means losing the assets permanently.
Best‑practice seed phrase security (non‑technical):
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- Keep offline (never cloud/email/photos).
- Consider metal backups, separated from PINs/passphrases, in 2–3 secure locations.
- Avoid single points of failure; consider multi‑sig for larger estates.
For devices/storage disposal, follow NCSC sanitisation principles to prevent accidental disclosure.
How Executors Access Crypto
Most major exchanges don’t let you pre‑name beneficiaries. Executors typically submit probate documents, will, ID and the death certificate to obtain control/transfer.
Self‑custody wallets (hardware/software)
Executors need the seed phrase/private keys (and any wallet‑specific passphrases) and clear steps to restore wallets safely. Without them, funds are unrecoverable.
The 7‑Step Crypto Inheritance Plan
- Inventory everything: coins/tokens, networks, wallets (hot/cold), exchanges, NFTs, domains, password managers, 2FA methods, device locations.
- Name capable executors: your will should authorise access/management of digital assets; consider naming a tech‑competent co‑executor or giving executors authority to engage specialists.
- Crypto Access Annex (private): a sealed letter or encrypted file with the plain‑English recovery steps, device unlocks, seed phrase custody locations, and security rules (do not put secrets in the public will).
- Custody model: for larger holdings, consider multi‑signature or a professional custodian. (We’ll discuss options and risk).
- Valuation & records: capture date‑of‑death pricing and maintain logs for IHT and potential CGT on later disposals.
- Executor playbook: stepwise instructions for safe device handling, wallet restoration, interim cold storage, and eventual transfers to beneficiaries. (We provide a template.)
- Prepare for HMRC CARF (from 1 Jan 2026): UK‑reporting crypto providers must collect user data and report annually; first reports due by 31 May 2027 covering 2026. Expect more HMRC visibility and matching.
Who Actually Holds Crypto in the UK (and Why This Now Matters)
FCA‑commissioned consumer research shows UK crypto ownership has fluctuated in recent years (around 12% in 2024, with subsequent changes reported in 2025), underscoring the scale of the inheritance issue as digital wealth grows.
For assistance with passing on your cryptocurrency, call our team on +44 (0)20 3588 3500, or press the Enquire button at the top of this page and we will call you back.
Frequently Asked Questions / Questions & Answers
Can I put crypto in my will?
Yes. A will can and should cover digital assets. We usually pair it with a private Letter of Wishes containing the access steps, not the secrets themselves.
Is crypto recognised as property in UK law?
Yes. The Property (Digital Assets etc) Act confirms digital assets can be recognised as personal property, building on the Law Commission’s recommendations.
Is there CGT when someone dies holding crypto?
No CGT at the moment of death; assets re‑base to market value at death. Later disposals may create CGT for the estate or beneficiaries.
How do exchanges release funds to an estate?
Typically via a probate process (death certificate, grant, ID, will). Policies vary by platform.
How should I store seed phrases for inheritance?
Keep secrets offline, consider metal backups and separate locations, avoid cloud storage, and document recovery steps for executors.
Will HMRC “see” crypto by default now?
From 1 Jan 2026, UK crypto providers must collect/report user and transaction data under CARF; first reports are due by 31 May 2027. HMRC will match data to tax records.
