Leaving cryptocurrency and digital assets in your Will

Posted on August 4, 2025

At Pearson the ownership and distribution of cryptocurrency on death forms part of sensible and thorough estate planning and is something our private client solicitors will always take into account when advising clients.

What is Cryptocurrency?

Cryptocurrency is an increasingly common asset that is stored in Digital Wallets and secured by Private Keys. As cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin become a regular part of personal estates. Whether you're a seasoned investor or someone who dabbles in digital assets, it's crucial to ensure that your cryptocurrency is accounted for in your estate planning.

Private Client Solicitor, Sarah Finnigan specialises in Business Wills and advises clients on the need for financial LPAs, but also the need to take crypto and digital assets into consideration when preparing a Will.

“We always say the law is constantly changing and in a world of digital assets and cryptocurrencies it is advisable to factor them into a Will, as well as set up a Lasting Power of Attorney including explicit instructions on how to deal with cryptocurrency and other digital assets should the owner lose mental capacity,” advises Sarah Finnigan.

Accessing crypto and digital assets after death

Without proper planning, your cryptocurrency could be lost forever, here’s what you need to know to safeguard your digital wealth and ensure it passes on according to your wishes.

Stating how you wish to benefit is straightforward; ensuring your executors have the ability to access and transfer your crypto and digital assets can be difficult if clear instructions have not been provided in the Will.

“If no one knows how to access your wallet your cryptocurrency could become permanently inaccessible after your death,” warns Sarah.

“We advise that an up-to-date digital inventory is made that contains clear instructions to the executor and/or beneficiaries on how to access the Digital Key for the Virtual Wallet.”

Your Will should:

Mention cryptocurrency explicitly.
Specify how you want the assets distributed.
Authorise your executor to access and manage digital assets.
Refer to any separate document (Letter of Wishes) detailing how to retrieve them and stating something like: “I give all my digital assets, including but not limited to cryptocurrency such as Bitcoin and Ethereum, to my [beneficiary], and I authorise my executors to take all necessary steps to access, manage, and transfer such assets.”

Transfer of digital assets

There is case law from UK jurisdictions on the transfer of digital assets because most contracts between online account holders and Internet service providers are governed by US law but the UK government is determining its approach in this area.

Indeed, digital assets are now recognised in common law and the Law Commission of England and Wales has recommended new legislation to deal with digital assets. The Law Commission in its publication of 29th July 2024 sets out the outcome of its consultation on a draft "Property (Digital Assets etc) Bill".

Its work during this consultation included reviewing the law on crypto and other digital assets which in the very first instance required them to establish the legal status of digital assets. The proposed draft bill in its introductory wording states that its object is to "make provision about the types of things that are capable of being objects of personal property rights.”

The Law Commission helpfully recommended that the government create a panel of industry experts to provide technical guidance on the legal issues relating to digital assets such as new ways to take security over crypto-tokens and tokenised securities.

“As always the law is playing catch up with the changing nature of assets and crypto but my best advice is to always liaise with a professional solicitor when making a Will or LPA,” adds Sarah

“It’s important to remember not to include sensitive information like your private keys or passwords in the Will itself, as it becomes a public document during probate. However, you can accompany your Will with a confidential letter containing access instructions (location of private keys, seed phrases, passwords).”

Estate planning with cryptocurrency

Cryptocurrency can be included in your estate planning, along with other assets such as money, property, and personal belongings and as such a Digital Wallet is part of the estate left behind.

In particular Bitcoin passes pursuant to your Will and will be managed by your named executor and distributed according to your Will.

As part of your estate planning, list all your cryptocurrency assets. This includes:

Types of crypto coins/tokens (e.g. Bitcoin, Ethereum, Solana)
Amount held on each
Wallet types (hardware, software, exchange-based)
Where they are stored (e.g. Ledger device, MetaMask, Coinbase account)

“It’s important to also remember that cryptocurrency is subject to Inheritance Tax (IHT) in the UK. As with all Wills crypto holdings, values, and wallet types may change over time so it’s important to review and update your Will and access instructions regularly to ensure they remain accurate,” advises Sarah.

“Including cryptocurrency in your UK Will requires legal precision and practical foresight. By cataloguing your assets, securing access instructions, appointing the right executor, and seeking legal advice where needed, you can ensure your digital legacy is protected and passed on without complications.”

How can we help?

For legal advice on Wills, estate planning or Inheritance Tax contact our private client solicitors on 0161 785 3500 or email enquiries@pearsonlegal.co.uk

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.