Crypto Inheritance UK – Can My Family Inherit My Crypto After I Die? A UK Investor’s Guide
Crypto Inheritance UK
Cryptocurrency has changed the way we invest and store wealth. But unlike traditional assets such as bank accounts or property, crypto brings unique challenges when it comes to inheritance. A question we hear a lot as crypto accountants is:
Can my family inherit my crypto after I die?
Short answer: Yes—but only if you’ve made the right preparations. Without a plan, your digital wealth can become inaccessible and may be lost forever. Here’s what every UK crypto investor needs to know.
Why Crypto Inheritance Is Different
With traditional assets, an institution can transfer funds to your beneficiaries once the legal paperwork is complete. Cryptocurrency is different: control = ownership. Whoever controls the private keys/seed phrases controls the asset. If those are lost, the crypto is gone—permanently.
That’s why a standard will or probate process isn’t enough on its own. Your plan must explain how your executors and beneficiaries can access your wallets and accounts, safely and lawfully.
What Happens Without a Plan?
If you pass away without leaving instructions:
- Your family may know you owned crypto but can’t access it.
- Exchanges may freeze accounts until they receive the appropriate probate documents.
- Self-custodied wallets (Ledger, Trezor, MetaMask, etc.) are unrecoverable without seed phrases or backups.
Outcome: potentially thousands (or millions) of pounds lost forever.
How to Make Sure Your Family Can Inherit Your Crypto “Crypto Inheritance UK”
1) Document Your Holdings
Keep a secure inventory listing:
- Coins/tokens held, networks, and balances
- Where they are held (exchanges, hot wallets, cold storage)
- Any relevant IDs (wallet addresses, exchange account email, 2FA method)
Store this in a secure but discoverable location. “In my head” doesn’t count.
2) Securely Share Access
Your executors/heirs need a way to access keys without compromising security while you’re alive.
Options to consider:
- Encrypted password manager with a shared emergency-access feature
- Cold storage (hardware wallets) in a safe or safety deposit box with clear, separate storage of PIN/seed phrase
- Multi-signature wallets so no single person can act alone
- An encrypted “access letter” or “crypto annex” that explains the recovery steps in plain English
3) Update Your Will (and Add a Letter of Wishes)
Work with a solicitor who understands digital assets. Your will should:
- Appoint executors who are willing and able to handle crypto
- Refer to a separate, updatable inventory (so you don’t need to rewrite the will every time balances change)
- Include a non-binding Letter of Wishes with practical access instructions
4) Consider a Trust (for larger estates)
For substantial portfolios, a trust or Family Investment Company (FIC) can add protection, continuity, and administrative clarity. Get specialist advice—trusts must be set up correctly to work as intended. “Crypto Inheritance UK”
5) Keep Good Records (for HMRC)
Maintain transaction histories (buys/sells/swaps, airdrops, forks, staking rewards, gifts). Tools like Koinly/cointracking can help. Good records speed up probate, support valuations, and reduce the risk of penalties. “Crypto Inheritance UK”
UK Tax Considerations at Death (High-level) “Crypto Inheritance UK”
- Inheritance Tax (IHT): Crypto is treated as property for UK tax. Its market value at the date of death forms part of your estate. Amounts above the available nil-rate bands (typically £325,000 plus any residence nil-rate band if applicable) may be taxed at 40%. Spousal exemptions and charitable relief can apply.
- Capital Gains Tax (CGT): There is generally no CGT on death. Assets are re-based to market value for beneficiaries. If a beneficiary later disposes of the asset, CGT applies to gains from that rebased value.
- Domicile/residence & cross-border issues: If you have ties outside the UK, seek advice—rules can change based on domicile and where assets/beneficiaries are located.
This is general information, not tax or legal advice. Get personalised guidance before acting.
What Executors/Beneficiaries Should Do “Crypto Inheritance UK”
- Secure devices (laptop/phone/hardware wallets) so nothing is altered or lost.
- Locate the inventory and any “crypto annex” or access letter.
- Contact exchanges with the death certificate and grant of probate to request account control/closure.
- Do not move funds from wallets until you’ve taken advice—unintended transfers can create tax/reporting issues.
- Obtain a valuation at the date of death for IHT and future CGT.
Common Mistakes to Avoid “Crypto Inheritance UK”
- Relying on memory for seed phrases/PINs
- Storing the seed phrase and the device together
- Naming an executor who has no clue about crypto and won’t get help
- Leaving no paper trail (or an overly technical one no one can follow)
- Ignoring IHT planning until it’s too late
Key Takeaways “Crypto Inheritance UK”
- Yes, your family can inherit your crypto—but only if you plan for it.
- Without private keys/seed phrases, assets may be lost forever.
- Combine practical access planning with legal documents and tax strategy.
- Treat crypto like any other significant asset in your estate plan.
Final Word “Crypto Inheritance UK”
Crypto offers incredible opportunities, but with that comes responsibility. Safeguarding your digital legacy is just as important as growing it.
If you’d like tailored advice—from Crypto Inheritance UK to inheritance tax planning to secure, practical structuring of your wallets and records—our team can help.
Book a confidential consultation:
📞 +44 20 33 02 1919
🔗 mycryptotax.co.uk
FAQ’s
How is crypto valued for Inheritance Tax (IHT) in the UK?
HMRC expects market value at the date of death, converted to GBP. Use a reasonable, consistent method such as:
Price from a major UK-accessible exchange at the time of death, or
A time-weighted average across reputable exchanges (document sources).
Keep screenshots/price feeds, wallet proofs, and a valuation schedule. There’s no CGT on death; beneficiaries inherit the rebased value and will pay CGT only on gains after they receive the assets.
What do executors need to access exchange or custodial accounts?
Contact each exchange’s bereavement team and be ready to supply:
Death certificate and Grant of Probate (or Confirmation in Scotland)
Executor ID/KYC and any forms the platform requires
The deceased’s account email/ID and wallet addresses (for reconciliation)
Do not guess passwords or move funds from self-custody wallets until advice is taken—unintended transfers can create tax and audit issues. For self-custody, executors will need the seed phrase or recovery plan described in the access letter.
DISCLAIMER
© My Accountancy Team 2025 All Rights Reserved – The above articles are provided for guidance only and may not cover your personal circumstances so you should not rely on them. It is important that you seek appropriate professional advice which takes into account your personal circumstances where you can provide the full facts of the case and all documents related to your case. My Accountancy Team Ltd t/a mycryptotax.co.uk, cannot be held responsible for the consequences of any action or the consequences of deciding not to act.
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