Cryptocurrency in a Will UK (2026): Bitcoin, Ethereum & Digital Assets

Yes — cryptocurrency is personal property in England and Wales and can be left in a will like any other asset. HMRC treats crypto assets as a form of property for both income tax and inheritance tax purposes. However, leaving crypto in a will is not as simple as writing 'I leave my Bitcoin to X.' The critical issue is access: cryptocurrency is controlled by private keys, not by name or national insurance number. If you die without leaving your executor a way to locate and access your private keys, the cryptocurrency may be permanently inaccessible — lost to the blockchain forever. A well-drafted will should identify the crypto assets held, specify how the executor can locate the access credentials, and ideally refer to a separate secure document (not the will itself) containing the private key or seed phrase instructions.

Exchange-held cryptocurrency (held in accounts on platforms such as Coinbase, Binance, Kraken, or Crypto.com) is legally similar to a bank account: the exchange holds the crypto on the user's behalf, and access is controlled by the account username and password. An executor can approach the exchange with a grant of probate and death certificate to claim the account — subject to the exchange's internal policy. Most major regulated exchanges have an estate/inheritance process. Self-custody cryptocurrency is held in a private wallet — a hardware device (Ledger, Trezor) or a software wallet — and is controlled exclusively by the private key or 12-to-24-word seed phrase. No institution holds it. If the executor cannot find the private key or seed phrase, the crypto is permanently inaccessible. This is the most common reason crypto is lost on death. For self-custody holdings, leaving secure but discoverable access instructions is essential.

The will itself is NOT the right place to record a private key or seed phrase. Once a will is admitted to probate it becomes a public document — anyone can read it, including thieves. Instead: (1) Store the seed phrase on a physical medium (metal plate or fireproof paper) in a sealed envelope in a secure location (safe, safety deposit box, or with a trusted solicitor). (2) Write a separate letter of wishes that tells your executor where to find the access instructions, without itself containing the credentials. This letter of wishes should be lodged with your executor personally, not with the will. (3) Consider a 2-of-3 Shamir Secret Sharing approach — splitting the seed phrase into three parts stored separately, requiring any two to reconstruct the whole. This adds resilience against single-location loss without increasing theft risk. Crucially, keep the access instructions updated whenever you change wallets, and tell your executor that crypto exists and roughly where the instructions are held.

Yes — cryptocurrency is a chargeable asset for inheritance tax purposes. HMRC's view (confirmed in its Cryptoassets Manual) is that crypto assets are property, forming part of the deceased's estate for IHT. The full market value of all crypto holdings at date of death is included in the IHT estate valuation. The normal IHT rules apply: up to £325,000 nil-rate band (plus up to £175,000 RNRB if applicable), with everything above taxed at 40% (or 36% if 10%+ of net estate is left to charity). Valuation at death is based on market price on the date of death — using a reputable exchange rate at the time of death (HMRC accepts a reasonable mid-market rate). The executor is responsible for including the correct market value in the IHT400 return. Because crypto prices are volatile, the executor should record the price carefully and document the exchange used. Note: if the crypto falls in value between the date of death and the date of sale, 'loss on sale' relief can reduce the IHT to the actual sale proceeds (similar to the rule for quoted shares).

Non-fungible tokens (NFTs) are treated as property in England and Wales and can be left in a will. An NFT is a cryptographic token held in a digital wallet — ownership is recorded on the blockchain. The same access challenge applies as for other crypto: the executor needs the private key or seed phrase to the wallet holding the NFT. NFT marketplaces (such as OpenSea) may also have separate account processes. The IHT treatment is the same: NFTs are chargeable assets at market value on death, though valuing them can be difficult if the specific NFT lacks an active market. Other digital assets with monetary value — gaming assets, digital gold in online platforms, domain names, monetised YouTube/content creator accounts — are all in principle part of the estate, though enforcing rights against non-cooperative platforms can be practically difficult. A letter of wishes addressed to your executor listing all digital accounts and assets (with login information stored separately and securely) is advisable.

Most major regulated cryptocurrency exchanges have an estate claim process, though it varies by platform. Generally the executor will need to: (1) notify the exchange of the death; (2) provide certified copies of the death certificate and the grant of probate (or letters of administration); (3) provide evidence of the executor's identity; and (4) follow the exchange's specific estate process, which may involve liquidating the holding to GBP or transferring in-kind to a wallet the executor controls. Regulated UK and international exchanges (Coinbase, Kraken, Binance, etc.) have formal processes and are required to co-operate with estate claims. Smaller or offshore exchanges may be more difficult. If the account has two-factor authentication linked to a phone or email the executor cannot access, this can create an additional barrier — inform your executor which email address and phone number are linked to each exchange.

Yes — gifts of cryptocurrency during a person's lifetime are treated as potentially exempt transfers (PETs) for IHT purposes, exactly as with cash or property. A gift of crypto made more than seven years before death is fully IHT-exempt. A gift made within seven years of death is included in the deceased's cumulative chargeable transfers and may generate IHT, subject to taper relief (from 40% down to 8% depending on how many years before death the gift was made). Additionally, gifting cryptocurrency is likely to trigger a capital gains tax (CGT) disposal event in the donor's hands — the gain is calculated as the market value of the crypto at the date of the gift minus the acquisition cost. If the crypto has appreciated significantly, the CGT liability can be substantial. HMRC expects both the IHT position (PET) and the CGT position (disposal) to be reported correctly.