Cryptocurrency is no longer a niche concern for tech enthusiasts. It has become a mainstream financial asset held by millions of people around the world. Yet despite its growing presence in everyday life, very few crypto owners have made provisions in their will for what happens to their digital assets when they die.
This article explores why cryptocurrency requires special consideration when making or updating your will, and the practical steps you can take to ensure your digital wealth is not lost forever.
What is cryptocurrency?
Cryptocurrency (often referred to as crypto) is a decentralised digital or virtual currency that exists entirely online and can be bought, spent, saved or sold. Unlike traditional currencies issued by governments or banks, cryptocurrency operates independently of any central authority, making it a truly borderless form of value exchange.
The most well-known example of cryptocurrency is Bitcoin, though there are thousands of others, including Ethereum and Litecoin, each with their own features and communities.
Why should I care about Crypto?
Cryptocurrency continues to be on a meteoric rise. 2025 statistics indicate that crypto usage is undeniably growing in all four corners of the world.
In the Asia-Pacific region, on-chain crypto activity grew by a remarkable 69%, while Latin America saw crypto adoption grow by 63%. These figures make clear that cryptocurrency is not a passing cultural trend – it possesses staying power and is not going anywhere anytime soon.
What makes cryptocurrency different?
Unlike traditional forms of currency, crypto poses a new challenge in the world of wills: that of accessibility.
While cryptocurrencies can, like any other asset, form part of your estate and be left to beneficiaries, its unique intangible nature means that additional steps should be taken by the crypto owner to ensure that those beneficiaries can receive what was left to them.
Cryptocurrency is stored in a digital ‘wallet’. Although it exists in digital format, the digital wallet should be treated the same as a physical one, and therefore must be kept secure. Digital wallets can only be accessed by using a ‘private key’. The private key is a secret number that allows the holder to access and manage their crypto funds. It represents the control and ownership of cryptocurrency, and in most cases, it is only known to the owner of the digital wallet.
It’s also worth noting that not all crypto is held in a private wallet. Many people hold crypto through exchanges like Coinbase or Binance, which have their own account recovery and inheritance processes.
Never put your private key in your Will
It may be tempting to simply include your private key or account passwords directly in your will, but this would be a serious mistake.
Once probate has been obtained, a will becomes a matter of public record. This means that anyone who knows how cryptocurrency works could identify your private key and access your funds before your rightful beneficiary is even aware of what has happened.
For this reason, your will should reference your cryptocurrency assets, but your private key and access credentials must be stored separately and securely.
Ensuring access to your digital wallet for your beneficiaries
To ensure your beneficiaries can access your cryptocurrency on your death without compromising its security, we recommend this two-step approach:
1. Include your cryptocurrency in your will
Clearly identify your digital assets as part of your estate and name the beneficiaries you wish to inherit them.
2. Create a separate cryptocurrency access guide (or digital inventory)
This is a secure, private document containing everything your executors or beneficiaries would need to access your digital wallet, including:
- All passwords to access your computing devices
- All usernames for relevant online accounts
- Your private key(s)
To remain effective, the access guide must be updated regularly and stored securely. Online password manager services can assist with this. It is also strongly recommended that a copy be held securely by your solicitors alongside your will.
If you pass away without leaving a digital inventory but your executors are aware that you held crypto assets, they may arrange for a specialist to search your computing devices for any cryptocurrency wallets and account details
However, if the specialist is unable to locate the relevant access credentials, your cryptocurrency assets could be lost permanently, which is a risk that is entirely avoidable with the right planning in place. it is estimated that around 20% of all Bitcoin in circulation has been permanently lost due to forgotten or inaccessible wallets.
What if I lose capacity and I am unable to update the access guide?
Planning for death is only one part of the picture. If you were to lose mental capacity before you die, you may no longer be able to manage or update your digital assets yourself.
In this situation, a Lasting Power of Attorney (LPA) can provide an important safeguard. An LPA allows you to appoint a trusted person (your ‘attorney’) to manage your affairs on your behalf. You can include explicit authority within your LPA for your attorney to deal with any cryptocurrency assets, ensuring that your digital wealth is protected even if you are no longer able to oversee it yourself.
Contact a Specialist Wills Solicitor
Cryptocurrency requires more careful estate planning than traditional assets such as property, bank accounts or cash. The good news is that with the right steps in place, it is entirely manageable.
If you would like to know more about securing your crypto assets as part of your will or wider estate plan, please contact one of our Wills Solicitors or alternatively call us on 020 8492 2290.
