Digital Assets, Cryptocurrency and Your Will: A Practical Guide for England and Wales
A modern estate can be held in places no family member can see.
It may sit behind an exchange login, a hardware wallet, a recovery phrase, a domain registrar, a payment processor or an online storefront. It may continue to earn income through advertising, subscriptions, licensing or digital products. It may also contain photographs, creative work and private records that have personal value even where no market value can easily be measured.
Traditional assets usually leave a trail. A bank may write to an address. A property appears on a title. A shareholding may be traced through company records. Digital assets can be different. If nobody knows they exist, where they are held or how they can lawfully be accessed, they may remain beyond the reach of the very people intended to inherit them.
This is the central difficulty of digital estate planning. Legal ownership and practical access are connected, but they are not the same thing.
The Property (Digital Assets etc) Act 2025 provides legal certainty that certain digital assets can attract property rights, including assets that do not fall within traditional categories of personal property.
However, this does not mean that every online account, file, or licence is automatically property that can be transferred. The nature of the asset, the contract with the provider, the ownership structure, and the terms of the will still matter.
For anyone holding cryptocurrency, operating an online business, or building value online, a will should now be considered alongside a secure digital asset plan.
What counts as a digital asset?
There is no single practical list that fits every person. A digital asset may have financial value, business value, intellectual property value, sentimental value or a combination of all four.
Digital assets, accounts and related rights can be grouped as follows:
Property and Rights with Potential Value
- Cryptocurrency and cryptoassets
- NFTs
- Domain-name interests
- Copyright and other IP
- Business assets
- Payment balances
- Contractual rights
Accounts and Platforms
- Exchanges
- Social media
- Cloud storage
- Hosting
- Creator platforms
- Payment platforms
Items Governed by Provider Terms
- Gaming items
- Loyalty balances
- Licences
- Subscriptions
- Virtual items
What You Own, What You License and What You Can Transfer
The distinction between an asset and an account is important. A person may own copyright in photographs stored on a platform without owning or being able to transfer the platform account itself. A balance may belong to the estate while the login remains governed by the provider’s security and bereavement procedure. A licence may end on death even though related intellectual property continues.
Digital estate planning therefore begins with classification; What is owned? What is licensed? What is held by a company? What is merely a right to use a service? What can be transferred, and what is governed by separate terms?
Can cryptocurrency and other digital assets pass under a will?
Property owned by a person can generally form part of their estate and pass under a valid will. A properly drafted gift of the residue may already be wide enough to include many digital assets, but relying on broad wording alone may not solve the practical problems.
Cryptocurrency can be legally included in an estate. HM Revenue & Customs expressly includes cryptoassets, such as cryptocurrency and Bitcoin, when estimating and valuing an estate for Inheritance Tax purposes.
However, the treatment of a digital asset depends on what it actually is.
- A self-custody wallet may give the holder direct technical control through private keys.
- Cryptocurrency held through a centralized exchange is usually accessed through the provider’s account and bereavement process.
- A domain name is governed by registration arrangements and renewal requirements.
- An online business operated by a sole trader may involve assets owned personally.
- An online business operated through a company usually involves company-owned assets. The shareholder’s estate may inherit the shares, not each underlying company asset.
- Copyright and other intellectual property may be owned personally, by a company or under a contract with a client, publisher or platform.
- Some accounts, licences, credits or virtual items may be non-transferable under the provider’s terms.
A will should be drafted around the true ownership position. It should also avoid instructions that conflict with a company’s constitution, shareholder agreement, partnership agreement, licence or platform contract.
If a person dies without a valid will, the intestacy rules determine who receives the estate. Those rules do not identify a forgotten wallet, preserve a domain renewal or tell an administrator how to reach a secured account. The absence of a will can therefore compound an already difficult access problem.
Ownership is not the same as access
This is the most important point in cryptocurrency estate planning.
A will can identify who should inherit an asset and who should administer the estate. It cannot recreate a lost private key, recovery phrase or authentication device.
With a bank account, an executor can usually approach the institution with the appropriate evidence and grant. With cryptocurrency held in self-custody, there may be no central institution with a password-reset process. If the only recovery information has been lost, legal entitlement may exist while technical access remains impossible.
The reverse problem is equally serious. A person who has a private key may be able to move cryptocurrency, but technical control does not by itself decide who is legally entitled to the asset. Executors and beneficiaries should not treat possession of a recovery phrase as permission to transfer estate property without proper authority, records and advice.
Where cryptocurrency is held on an exchange, the executor will usually need to follow the platform’s deceased-customer process. Identity documents, a death certificate, a grant of representation and other evidence may be required. The steps differ between providers and can change over time.
A good plan must therefore answer two questions:
- Who is legally entitled to deal with or inherit the asset?
- How can the authorised person locate and securely access it when the time comes?
Do not put private keys, seed phrases or passwords in the will
A will is not the right place for live security credentials.
After probate is granted in England and Wales, a copy of the will may be obtained through the very public probate-record service. A private key, seed phrase, password, PIN or complete recovery process placed in the will could therefore create a serious security risk.
There are other practical problems. Access details change. Devices are replaced. Exchanges merge or close. A frequently amended list of passwords can quickly make a will inaccurate, while repeated will changes increase cost and create avoidable execution risks.
A standard approach is to keep the legal provisions within the will while maintaining separate, secure, and updateable information regarding the location of assets and the necessary arrangements to access them.
The exact arrangement should fit the value, complexity and custody method involved. It might include a confidential memorandum, a secure digital inventory, a reputable password manager with an emergency-access feature, professional custody, a hardware wallet stored securely or a carefully designed multi-signature arrangement.
Complexity is not always protection. A plan that requires five people to remember five different steps may fail precisely when it is needed. Security should be strong, but the authorised executor must still be able to understand and follow the process.
What should a digital asset inventory contain?
A digital asset inventory is a map. It should help an executor identify what exists without placing every secret in one vulnerable document.
Consider documenting:
- The type of asset
- The legal owner, including whether it is held personally, jointly, in trust, through a partnership, or by a company
- The exchange, custodian, wallet type, registrar, host, or platform involved
- A public wallet address or account identifier, where appropriate
- Where the secure access instructions are stored
- What device, application, or authentication method is required
- Where transaction histories, purchase records, and tax records can be found
- The name of any relevant accountant, business partner, platform contact, or technical adviser
- Domain, hosting, licence, and subscription renewal information
- Whether the asset earns income or creates continuing contractual obligations
- Any wishes regarding preserving, transferring, selling, closing, memorialising, or deleting the asset or account
Avoid placing a seed phrase or private key in an unsecured spreadsheet, ordinary email draft or cloud note. An inventory should point the authorised person towards the secure access route. It does not need to expose the entire route to anyone who happens to find the list.
The inventory should also be reviewed. A beautifully prepared list that names an exchange no longer used or a device already discarded may provide false reassurance.
Choosing the right executor for a digital estate
An executor does not need to be a blockchain developer. They do need to be trustworthy, organised and willing to obtain specialist help where necessary.
For a digital estate, consider whether the proposed executor can:
- Identify and preserve volatile or easily transferred assets
- Follow security procedures without circulating confidential credentials
- Keep a clear record of wallets, transactions, valuations, and fees
- Deal with exchanges, platforms, registrars, hosting providers, and payment processors
- Understand when a company, partnership, or intellectual property issue requires separate advice
- Work with a solicitor, accountant, valuer, or reputable technical specialist
Some people use the phrase digital executor to describe the person handling online assets. In England and Wales, the important question is whether the person has the necessary legal authority under the will and the grant, rather than the informal label used. A will may appoint more than one executor or give suitable administrative powers, but the drafting should be tailored to the estate.
Where the estate holds substantial cryptocurrency or an income-producing online business, a professional executor or a combination of personal and professional executors may be worth considering. The decision should take account of cost, technical ability, family relationships, conflicts of interest and the need for continuity.
Cryptocurrency, probate and Inheritance Tax
Cryptoassets should not be treated as invisible for tax purposes.
HM Revenue & Customs says identified cryptoassets should be valued and included in the estate information provided where appropriate. If an asset is believed to exist but is inaccessible, HMRC guidance says the position and believed value should be explained in the additional information provided with the relevant Inheritance Tax account.
The value can move sharply between death, probate and distribution. Personal representatives may therefore need reliable evidence of the value at the date of death, transaction histories, acquisition records and any later sale or transfer.
Inheritance Tax depends on the value and structure of the whole estate, available exemptions and reliefs, lifetime gifts and the beneficiaries involved. Further tax consequences may arise if an executor or beneficiary later disposes of an inherited asset. Cryptocurrency, staking rewards, decentralised-finance activity and cross-border holdings can add complexity.
Executors should avoid moving or selling cryptoassets casually. They should establish authority, preserve evidence, consider security, understand the tax position and record each transaction. A transfer made quickly but documented badly can create problems for the estate even where the intention was sensible.
This article does not provide tax or investment advice. A solicitor and tax adviser should be consulted where the values, structures or transactions are material.
Online businesses, domains and monetised accounts
For an online business, death can create an operational problem before probate is complete.
A domain may need renewal. Hosting fees may fall due. Advertising or subscription income may continue. Customer enquiries, refunds, payroll, supplier commitments and data-protection duties may not pause simply because the owner is no longer able to respond.
The first question is ownership.
If the business is operated by a limited company, the company’s assets remain owned by the company. The deceased person’s shares may pass under the will, subject to the company’s articles, any shareholder agreement and other arrangements. The director role itself does not pass under a will. A company with only one director or shareholder may therefore need specific continuity planning.
If the business is operated as a sole trader, business assets and liabilities may fall directly into the personal estate. A partnership or limited liability partnership will require its own agreement and succession analysis.
A practical business digital asset plan may need to address:
- Ownership and transfer of shares or business assets
- Director, shareholder, and key-person continuity
- Domains, websites, hosting, and source code
- Payment processors, merchant accounts, and banking access
- Platform contracts and creator accounts
- Copyright, trade marks, licences, and royalties
- Customer data, confidentiality, and regulatory duties
- Staff, supplier, and client contacts
- Recurring subscriptions, advertising, and renewal deadlines
- Whether the business should continue, be sold, or be wound down
The will is one part of that structure. Company documents, shareholder or partnership agreements, commercial contracts, insurance, delegated access and a business-continuity plan may be equally important.
Copyright, content and digital memories
Not every digital asset is held for investment.
Photographs, manuscripts, illustrations, music, films, course materials, software, and other original work may carry copyright. Copyright may continue after death and generate royalties or licensing income, but ownership may have already been assigned or sit with an employer, client, publisher, or company.
Personal accounts may also contain memories with no obvious financial value but great importance to a family. A person may wish for photographs to be preserved, a profile to be memorialised, private messages to remain private or certain data to be deleted.
These wishes should be separated from assumptions about legal ownership and platform access. Provider tools and terms may allow a legacy contact, memorialisation, download or closure, but the available options differ. A clear inventory and letter of wishes can help the executor understand the person’s preferences, while the will deals with property and legal authority.
Cross-border digital assets
Digital assets often appear borderless, but estates are not.
The owner may live in England while an exchange is incorporated elsewhere, a company is registered abroad, a domain is administered through another jurisdiction and beneficiaries live in several countries. The location of a cryptoasset for tax and private international law purposes can require specialist analysis.
People with substantial overseas connections should not assume that one will or one legal system will deal neatly with every asset. Advice may be needed on residence, tax, succession, foreign grants, company law and the coordination of wills in different jurisdictions.
Care is particularly important before making multiple wills. One document can unintentionally revoke another if the drafting and execution are not coordinated.
A will only operates after death
Digital planning should also consider incapacity.
A will does not give anyone authority while the person is alive. If illness or incapacity prevents the owner from managing an exchange account, online business or digital records, an appropriately drafted Lasting Power of Attorney may form part of the wider plan.
The attorney must still act within their legal authority, in the donor’s best interests and in accordance with applicable platform, security and regulatory requirements. A secure inventory and clear business records can reduce disruption, but credentials should not be shared casually in advance.
A practical digital estate planning checklist
- Make an inventory of financially valuable, operational and sentimental digital assets.
- Confirm who owns each asset, particularly where a company, partnership, trust or client contract is involved.
- Decide who should inherit, manage, preserve, sell or close each category.
- Choose executors who can act carefully and obtain appropriate technical, legal and tax support.
- Review the will to ensure digital assets, intellectual property and suitable administrative powers are addressed.
- Create a separate, confidential and updateable access plan.
- Keep private keys, seed phrases, passwords and recovery codes out of the will.
- Preserve transaction histories, acquisition records, valuations and tax information.
- Coordinate the will with company documents, shareholder agreements, partnership agreements and business-continuity plans.
- Review the plan after changing wallets, exchanges, businesses, relationships or intended beneficiaries.
Common mistakes to avoid
- Assuming a family member will find a wallet or account without guidance
- Putting a seed phrase, private key, or password directly in the will
- Keeping the only access instructions on the same device as the wallet
- Naming a beneficiary without creating a lawful and secure access route
- Assuming every online account is transferable
- Treating company-owned assets as though they are owned personally
- Forgetting domain, hosting, storage, and subscription renewals
- Failing to preserve crypto transaction and tax records
- Creating a complicated security arrangement that nobody else can operate
- Using an informal online instruction as though it were a legally valid will
Frequently asked questions
Can I leave cryptocurrency in my will in England and Wales?
Yes. Cryptocurrency that you own can form part of your estate and may pass under a valid will. The will should be considered alongside secure access arrangements, executor powers, tax records and the way the asset is held.
Do I have to list every wallet and token in the will?
Not necessarily. A will may use wider wording, while a separate inventory identifies current wallets, exchanges and records. The appropriate structure depends on whether specific gifts are intended and how often the holdings change.
Should my will contain my seed phrase or private key?
No. Live security credentials should not be written into a will. A will may become available through the probate-record service after probate is granted. Use a separate, secure and updateable access arrangement.
What if my executor knows the wallet exists but cannot access it?
The asset may still need to be investigated, valued and reported. For a self-custody wallet, lost recovery information may make access impossible. For a custodial exchange, the executor should follow the provider’s bereavement procedure and provide the required legal documents.
Are cryptocurrency holdings subject to Inheritance Tax?
Cryptoassets are included when valuing an estate. Whether Inheritance Tax is payable depends on the estate as a whole, the available exemptions and reliefs and the circumstances of the transfer. Tax advice may be required.
Can a domain name or online business be inherited?
Potentially, but ownership and contractual terms matter. A sole trader may own assets personally. A limited company owns its own assets, while the deceased shareholder’s shares may pass through the estate. Domain registration, platform contracts, intellectual property and company documents should all be reviewed.
Is a digital executor a separate legal role?
Digital executor is often used as a practical description. The person dealing with estate assets needs valid legal authority as an executor or administrator. A will can appoint suitable executors and include appropriate powers, but informal labels alone do not create authority.
What happens to digital assets if there is no will?
Assets forming part of the estate pass under the intestacy rules, but the practical access problem remains. Administrators may not know the assets exist, and online accounts or self-custody wallets may be difficult or impossible to access without a plan.
The value of a plan that can actually be followed
Digital wealth can be built quietly. A wallet may grow over years. A domain may become the address of a thriving business. A library of photographs, writing or designs may carry both income and identity.
Yet value that cannot be identified, protected or lawfully reached can be lost in practice, even when the law recognises it in principle.
A thoughtful plan connects intention with access. The will identifies legal authority and inheritance. The inventory shows what exists. The secure access arrangement protects the information needed to reach it. Business and tax records allow the executor to act responsibly.
If you hold cryptocurrency, operate an online business, own valuable domains or earn income through digital platforms, Lawher & Co. Solicitors can help you consider how those assets fit within your will and wider estate plan.
Contact Lawher & Co. Solicitors through info@lawher.co.uk or call 01727 222290.
This article provides general information about the law in England and Wales. It does not constitute legal, tax, investment or technical advice. Digital assets, provider terms and individual circumstances vary. Advice should be obtained on the facts of the individual matter.