Can Digital Assets be left in a Will?

When people think about making a Will, usually they consider how to leave assets such as their house, savings, investments, jewellery or other possessions. However, the structure of our financial lives has changed considerably in recent years, and many people now own assets that exist entirely online.

Digital investments, cryptocurrency, NFTs and other forms of digital property can all form part of someone’s estate. This raises an important question as to whether digital assets can be left in a Will and passed on to selected beneficiaries.

There are some important practical issues to consider.

What counts as a Digital Asset?

“Digital Assets” is a very broad term. It can include cryptocurrencies such as Bitcoin and Ethereum, certain digital investments, tokenised assets and even some forms of online intellectual property.

It is important to distinguish between an online account that would give someone permission to use a service and an owned digital asset.

For example, cryptocurrencies may be assets that could form part of an estate. By contrast, some types of digital content may simply be accessed by personal licences that are not generally transferred to someone else after death.

This distinction can make digital estate planning more complicated than simply making a list of passwords.

The law

The Property (Digital Assets etc) Act 2025 recognised digital assets as a third category of personal property. This means qualifying digital assets can be owned, inherited and dealt with as part of an estate.

That is significant. Previously there was uncertainty surrounding certain digital assets and whether such assets could be treated as property in the traditional sense.

Practically speaking, someone who owns cryptocurrency or another qualifying digital asset can arrange for those assets to pass to chosen beneficiaries when they die.

How to include digital assets in a Will

It is possible to include specific provisions in a Will when dealing with digital assets. Alternatively, if the Will does not make a specific gift, an asset may fall into the residuary estate, depending on the wording of the Will. It is important to ensure there is clarity on this, particularly when the assets are valuable.

Example

An individual may wish that their cryptocurrency passes to a particular child, rather than simply being divided between all their children. A carefully drafted Will can set out that intention.

It is also prudent to note that the digital asset and the device used to access it are not necessarily the same thing. A hardware wallet, phone or laptop could be left to one person, while the assets controlled through it or stored on it could potentially be intended for someone else.

Access to the assets, a potential problem?

Digital assets being left to an individual in a Will form only part of the process. The Executor of an estate would need to be able to identify and access the assets. Cryptocurrency is a good example of this as an executor would need to know that an individual owned and held cryptocurrencies such as Bitcoin, but may not be clear on where it is held or how to access the relevant wallet.

Specific security information, private keys or recovery phrases can be essential to accessing such assets. In the absence of the aforementioned information, an asset could, in some cases, become effectively inaccessible, even though it legally forms part of the estate.

This doesn’t mean that private keys or passwords should simply be written into the Will. Indeed, Wills can be accessed by the public during the process of probate or once probate has been completed, so sensitive security information should generally be kept separately and securely.

Often, a separate letter of wishes could contain an inventory of the digital assets held by an individual which could prove invaluable to an executor administering an estate. The letter of wishes could explain what assets are in existence or where the assets are held and it could also provide sensitive information that would then assist an executor in hopefully being able to deal with them.

Tax

Digital assets should not be overlooked when considering Inheritance Tax.

HM Revenue & Customs treats crypto assets and/or digital assets as part of a person’s estate for the purposes of calculating Inheritance Tax.

This is particularly important because cryptocurrency values can change quickly and significantly. The value of an asset for estate purposes needs to be established at the relevant date, and the tax position can become more complicated if assets are subsequently sold or transferred.

Planning ahead

Digital assets can often be more complex for families to understand or even discover in comparison to traditional assets such as a house or a bank account. There may be no paper statements in a filing cabinet and no obvious record of an online wallet.

A sensible digital estate plan could therefore include an inventory of significant digital assets, details of the platforms or exchanges involved, information about relevant devices and clear instructions for the executor.

It would also be sensible to consider the people that you choose to be your executor, as some individuals may be more familiar with such digital assets than others. Where a person holds substantial cryptocurrency or other complex digital property, it would also be worthwhile to consider obtaining professional advice.

Most importantly, digital estate planning should be reviewed regularly.

A modern estate may need a digital plan

Digital assets are becoming more common and as such could form a genuine part of many people’s wealth and estates – they should not be treated as an afterthought when making a Will.

It is helpful that the law now provides clarity that qualifying digital assets can be property and can be inherited. However, simply naming an asset in a Will does not solve every practical problem.

The key is to think about ownership, instructions, access and tax together. A well-prepared digital estate plan can give executors the information they need and, just as importantly, give family members confidence that valuable digital assets will not be lost when someone dies.

How Pinney Talfourd can help

If you own digital assets and want to ensure they are properly accounted for in your Will, our experienced Private Client team can provide practical advice to help you plan for the future and protect your estate.

To discuss your circumstances, contact your local office on 0800 011 1195 or email .