What Happens to My Crypto If I Die?

What Happens to My Property If I Die Without a Will? 

If you die without a will, you are said to die “intestate,” and your estate will be distributed according to the statutory rules of intestacy. These rules are rigid and often fail to reflect modern families or digital realities, especially when it comes to crypto.

In broad terms, if you die intestate: 

• If you are married and have children, your spouse inherits your personal chattels (tangible, movable property), the first £332,000 of your estate, and half of whatever is left after that (the residue), with your children receiving the other half of whatever is left when they turn 18 (in equal shares); 
• If you are married but don’t have children, your spouse inherits your entire estate; 
• If you have children but are not married, your children inherit your entire estate in equal shares when they turn 18; 
• If you are not married and don’t have children, your estate passes to other living family members, provided they survive you, with your parents being first on the list to inherit, followed by your siblings and more distant family members if there are no surviving parents or siblings.   

What Happens to My Crypto If I Die Without a Will? 

Unlike traditional assets, crypto holdings rely entirely on access to cryptographic keys and devices. If those aren’t accessible, your heirs may have no way to recover your investments. There are no password reset options for self-custodied wallets, no fallback procedures written into UK succession law, and no recognition of crypto as a routine asset class in many wills. Without explicit provision, it often ends up forming part of the residue, or worse, goes unnoticed entirely.

First, if no one knows that the crypto exists, or if they don’t know how to access it, it may never form part of your estate at all. Crypto assets are not like bank accounts that automatically notify next of kin; they can disappear into the void if your private keys and wallet locations are not disclosed.

Second, even if your heirs are aware of the holdings, they may not be able to legally access your wallets or exchange accounts without proper authority. Some exchanges will not release assets unless there’s proof of identity and probate documentation, and others, especially offshore platforms, may refuse altogether.

Third, crypto assets may not fall within the traditional definition of “personal chattels” under the intestacy rules. If not explicitly included in this definition in a will, they may pass into the residuary estate or lead to disputes if heirs disagree over valuation or ownership.

This uncertainty can lead to costly litigation, tax inefficiencies, and – in the worst cases – complete loss of the asset. Creating a will is the simplest and most effective way to avoid this scenario.

What Makes Crypto Different From Other Assets?

Crypto and NFTs do not fall into the traditional categories of property, namely real property (land and interests in land), choses in possession (physical items that can be possessed or delivered), or choses in action (intangible rights that can be enforced through legal action such as debts, intellectual property rights or shares in a company). Instead, ownership of crypto is synonymous with access. 

The legal and tax treatment of crypto assets is still evolving. UK courts have begun recognising them as a novel form of personal property, as seen in D'Aloia v Persons Unknown [2024]. Meanwhile, there is still uncertainty over where crypto is considered to be "located" for tax purposes, with differing views from HMRC and professional estate planning organisations.

How Do I Make Sure My Heirs Can Access My Crypto After I Die?

A properly drafted will is a powerful tool for managing digital wealth. It should include specific reference to your crypto holdings, and may even appoint a "digital executor" – someone with the knowledge and authority to manage your digital estate. The will should refer to an external document (such as a letter of wishes or digital asset log) that contains access details or instructions. Such details should not be included in the will itself; since wills become public documents on probate, doing so creates a significant risk of theft. 

By making sure access details are stored separately from your will, sensitive information remains private, but your personal representatives still know how to proceed. It’s also advisable to include express powers allowing executors to deal with digital assets, which can be crucial if international jurisdictions are involved. Beyond crypto, digital legacies may also include personal data, social media accounts, and intellectual property. Letters of wishes can help set out your intentions on how these should be handled.

First Steps: Protecting Your Digital Legacy

• Create an inventory: List all wallets, exchanges, cold storage devices and any NFTs.
  
• Secure your keys: Use a secure third-party tool or trusted method to store your private keys.
  
• Keep your inventory and keys separate from the will: Avoid including sensitive access information in the will itself.
  
• Appoint the right people: Choose executors who understand the digital space or seek professional help.
  
• Review regularly: Crypto moves fast. Your plans should too.

Ready to Secure Your Crypto Legacy?

If you're serious about protecting your digital assets for the next generation, Blocksize Law can help - our lawyers are experienced in both crypto and estate planning. A "crypto will" is no longer a novelty, but a necessity.

Contact us via our contact page for a free, no obligation consultation to learn how we help clients safeguard their digital wealth across jurisdictions.