Crypto is designed to have no central authority, which is precisely what makes it powerful for the person holding it and genuinely difficult for whoever inherits it. Without proper planning, cryptocurrency can become permanently inaccessible when its owner dies, with no bank or company able to help.
Why Crypto Inheritance Is Different From a Bank Account
When someone dies with a UK bank account, their executor can contact the bank, provide a death certificate and grant of probate, and gain access to the funds through an established legal process. Self-custody crypto has no equivalent. If nobody else knows the seed phrase, private key, or wallet password, the funds are permanently lost, regardless of what a will says or what a court decides. The blockchain does not recognise probate.
Does UK Inheritance Law Apply to Crypto?
Yes. Cryptocurrency is treated as property under UK law and forms part of a person’s estate for inheritance purposes, meaning it is subject to Inheritance Tax in the same way as other assets, based on its value at the date of death. The legal right to inherit it is not the issue; the practical ability to access it is.
The Core Problem: Access Versus Ownership
Your will can legally state that your crypto goes to a named beneficiary, but a will alone does not grant technical access to a self-custody wallet. Whoever inherits the assets still needs the seed phrase, private key, or exchange login details to actually claim them. This gap between legal ownership and technical access is the single biggest risk in crypto inheritance planning.
How to Plan for Crypto Inheritance Properly
1. Document What You Hold, Without Exposing It
Keep a record of which wallets and exchanges you use and roughly what they hold, without writing your actual seed phrases or passwords in the same document. This helps your executor know what to look for without creating a single document that, if found by the wrong person, exposes everything.
2. Store Access Details Separately and Securely
Seed phrases and passwords should be stored securely, for example in a safe or safety deposit box, separate from the document that says what they unlock. Some people use a metal backup plate for the seed phrase itself, stored in a fireproof location.
3. Tell a Trusted Person Where to Look, Not What the Details Are
Your executor or a trusted family member should know that crypto exists and roughly where the access information is stored, without necessarily having the seed phrase itself while you are alive. This limits your risk while you are still using the wallet, while ensuring the information is not lost with you.
4. Consider a Solicitor Experienced in Digital Assets
UK solicitors increasingly deal with digital asset estates, and a will written with crypto specifically in mind can include clear instructions for your executor without exposing sensitive access details within the will itself, since a will becomes a public document once probate is granted.
5. Review and Update as Your Holdings Change
If you move funds to a new wallet or start using a new exchange, your inheritance documentation needs updating too. An outdated plan pointing to a wallet you no longer use is nearly as unhelpful as no plan at all.
What Happens With Exchange Accounts
Custodial exchange accounts, unlike self-custody wallets, do have a support process for deceased users, typically requiring a death certificate and grant of probate submitted to the exchange directly. This is closer to how a bank account works, though processes and timelines vary considerably between platforms, so check the specific exchange’s policy rather than assuming.
A Balance Between Security and Accessibility
The uncomfortable tension in crypto inheritance planning is that the same self-custody principles that protect you from theft while alive can lock your family out permanently after you die. Good planning finds a middle ground: strong security day to day, with a clear, separately stored path for your executor to follow when the time comes. Our crypto wallets guide and Ledger vs Trezor comparison are useful starting points if you are reviewing how you store your keys with inheritance in mind.
Frequently Asked Questions
Is cryptocurrency subject to UK Inheritance Tax?
Yes, cryptoassets are treated as part of the deceased’s estate and are potentially subject to Inheritance Tax based on their value at the date of death, the same as other property. See HMRC’s guidance on valuing cryptoassets for how this is calculated.
Can a solicitor access my crypto wallet after I die if it is in my will?
Not automatically. A will can name a beneficiary, but without the seed phrase or private key, nobody, including a solicitor or court, can access a self-custody wallet.
Should I put my seed phrase directly in my will?
No. A will becomes a public document once probate is granted, so anyone who accesses it could see and steal the funds. Store access details separately and reference their existence, not their content, in your will.
This article is for general information only and is not legal or tax advice. Speak to a solicitor experienced in digital assets for advice specific to your situation.
