Digital Assets & Wills UK (2026): Cryptocurrency, Online Accounts & What Happens When You Die

What counts as a digital asset?

Digital assets span a wide range — from cryptocurrency worth thousands of pounds to irreplaceable family photos stored in the cloud. For estate planning purposes, they fall into four categories:

What happens to cryptocurrency when you die?

English law recognises cryptoassets as personal property (Property (Digital Assets etc) Act 2025). HMRC taxes them as property for IHT. But legal recognition does not solve the access problem.

How to include digital assets in your will

1. 1

   Authorise your executor in the will

   Your will should explicitly grant your executor authority to access, manage, sell, transfer, or close your digital assets. Without this authorisation, some platforms may refuse access even with a Grant of Probate.

2. 2

   Reference a separate secure access guide

   Include a clause such as: 'I have left my executor a sealed document titled My Digital Asset Access Guide containing instructions for accessing my digital assets.' Direct your executor to its secure location.

3. 3

   Never put secrets in the will itself

   Your will is filed at the Probate Registry and becomes a public document after probate is granted. Never include seed phrases, private keys, passwords, or PIN codes in your will — anyone could read them.

4. 4

   Create a secure digital access annex

   A sealed envelope (stored with a trusted person, solicitor, or safety deposit box), or an encrypted digital file — containing: wallet addresses and seed phrases; exchange account recovery codes; email and social media login details; and instructions for which accounts to close vs transfer.

5. 5

   Keep it updated

   Digital assets change frequently. Review your access guide annually and whenever you open new accounts, move crypto between wallets, or change passwords. An outdated guide is almost as useless as no guide.

Tax on digital assets at death

Inheritance Tax: Cryptoassets are valued at open market price on the date of death and included in the taxable estate. IHT at 40% applies to the amount above available nil-rate bands. The executor must report the value on the IHT return (IHT400 or IHT205) using the date-of-death exchange rate.

Capital Gains Tax: When the executor sells crypto to pay debts or distribute the estate, CGT may be due on any increase in value from the date-of-death value to the sale price. The estate has a CGT annual exempt amount (£3,000 in 2026/27). Beneficiaries who receive crypto and later sell it will also have a CGT liability on any gain from the date-of-death value.

Keep records: Maintain a transaction log showing purchase prices, dates, and exchange rates for all crypto holdings. This simplifies both IHT valuation and any CGT calculations.

Frequently asked questions

What happens to cryptocurrency when you die in the UK?

Cryptocurrency is treated as personal property by HMRC and can be inherited — but only if your executor can access the wallets or exchange accounts. Self-custodied crypto (held in a private wallet) is permanently lost if no one has the seed phrase or private keys. Exchange-held crypto (e.g., on Coinbase, Binance) can be claimed by executors with a Grant of Probate and verified ID, but requires navigating exchange-specific procedures. Include your crypto in your will and leave a secure access guide — never put seed phrases in the will itself (it becomes a public document).

What digital assets should I include in my estate plan?

The main categories are: (1) cryptocurrency and NFTs in self-custody wallets or exchanges; (2) online accounts with monetary value (PayPal, online banking, investment platforms); (3) digital businesses and online income streams (Etsy shops, websites, YouTube channels); (4) subscription accounts (Netflix, Spotify) — most close on death; (5) social media and email accounts — most platforms have legacy contact or memorialisation policies; (6) cloud storage and digital photos (irreplaceable personal value); (7) digital collectibles, domain names, and in-game assets.

How do I include digital assets in my will?

Your will should: (1) authorise your executor to access, manage, and distribute digital assets; (2) specify any crypto by type (e.g., 'all cryptocurrency held in my name') without listing wallet addresses or seed phrases; (3) direct your executor to a secure, sealed document (a 'crypto access annex') stored separately from the will, containing recovery instructions. Never put private keys, seed phrases, or passwords in your will — it is filed at the Probate Registry and becomes a public document after probate.

How does HMRC treat cryptocurrency for inheritance tax?

HMRC treats cryptoassets as property for all tax purposes. At death, crypto is valued at the open market price on the date of death and included in the taxable estate for IHT purposes. If the estate exceeds the nil-rate band (£325,000 + potentially £175,000 RNRB), IHT at 40% is due on the crypto value above the threshold. If the executor later sells the crypto, Capital Gains Tax may also apply on any gain from the date-of-death value to the sale price. Keep accurate transaction logs.

What is a digital legacy plan?

A digital legacy plan is a set of documents and instructions that help your executor and family manage your online presence and digital assets after death. It typically includes: a list of your digital assets and accounts; a sealed access guide (stored securely, separate from your will) with passwords, seed phrases, and recovery codes; instructions for which accounts to close, memorialise, or transfer; and digital media preferences (photos, videos, social media). It does not need to be a legal document — but your will should reference it and authorise your executor to use it.

Can executors access online accounts without a password?

Many platforms have post-mortem access procedures. Google Inactive Account Manager lets you designate someone to access your account after death. Apple has Legacy Contacts. Facebook and Instagram can be memorialised. Most banks with online portals will provide executor access with a Grant of Probate and death certificate. Cryptocurrency exchanges vary: most established UK-regulated exchanges have estate claim procedures. Self-custodied crypto with no seed phrase or recovery key is permanently inaccessible — no court order or locksmith can help.

What happens to PayPal and online payment accounts when you die in the UK?

PayPal balances form part of your estate. Your executor should notify PayPal with the death certificate and Grant of Probate — PayPal will close the account and release the balance to the estate. Most payment platforms have similar procedures. Online banking accounts are handled by the bank as part of the estate administration. Subscriptions (Netflix, Spotify, Prime) should be cancelled promptly to stop ongoing charges — most close automatically when payment fails.

Related guides

• What to Include in Your Will UK: Complete Checklist
• Executor Duties Checklist for England & Wales
• Do You Need Probate in the UK?
• What Is Estate Planning UK? The Five Key Documents