Crypto Estate Planning: What Happens to Your Digital Assets When You Die

An estimated £300 million in cryptocurrency is believed to have been permanently lost due to the deaths of owners who did not share their access credentials. Unlike a bank account, there is no customer service team that can reset your wallet’s password. Without a private key or seed phrase, crypto held in a self-custody wallet is inaccessible forever.

Estate planning for digital assets has become essential as crypto holdings grow in value and prevalence. This guide covers what UK crypto holders need to know about ensuring their digital assets can be passed on — and the specific steps to take now.

Why Crypto Inheritance Is Different

Traditional assets (bank accounts, property, shares) can be claimed by beneficiaries through probate even if the deceased did not make explicit provision, because institutions hold records and can respond to legal requests. Self-custody cryptocurrency is different in a fundamental way: the private key is the only proof of ownership and the only way to access the assets. No court order can override this cryptographic reality.

Exchange-held cryptocurrency (on Coinbase, Kraken, etc.) is more analogous to traditional assets — the exchange holds the keys and can respond to probate requests with appropriate documentation. Self-custody wallets (hardware wallets, software wallets where you control the seed phrase) are purely dependent on whoever holds the private key.

UK Legal Framework for Digital Assets

In England and Wales, crypto assets are recognised as property and can be included in a will. The Law Commission confirmed in 2023 that digital assets form a distinct category of property capable of being owned, transferred, and inherited. This provides legal clarity that was previously uncertain.

Under UK law, crypto passes via your will (if you have one) or under intestacy rules (if you do not). Including specific crypto provisions in your will is strongly recommended. Your executor needs both legal authority (from the will) and practical access (the private key or seed phrase) to claim the assets.

Practical Steps for UK Crypto Holders

Step 1: Create a clear inventory. Document every crypto holding: which platforms or wallets, approximate values, and how to access each. This does not need to include private keys — just enough for an executor to know what exists and where to start.

Step 2: Secure key information separately. Private keys and seed phrases should not be in your will — wills become public documents after probate. Store access information in a secure, separate document: a sealed envelope with a trusted family member, a bank safety deposit box, a solicitor’s file, or an encrypted document whose decryption key is separately stored.