Digital Assets 7 June 2026 10 min read

Managing Cryptocurrency, NFTs and Other Digital Assets in an Estate Plan

Cryptocurrency, NFTs and other digital assets are now part of many people’s financial lives. For families, the hard part is not always recognising that these assets exist. It is knowing how to make sure they can be found, understood and transferred after death without exposing passwords or private keys too early.

If a person dies without leaving clear instructions, digital assets can become frozen, lost or permanently inaccessible. That is especially true for crypto wallets and some NFT holdings, where there may be no customer service team able to reset access. This guide explains the practical steps families can take in the UK to reduce that risk and help executors do their job.

For a broader look at digital inheritance planning, you may also find Digital Inheritance Planning in the UK: How to Organise Your Online Accounts and Passwords useful.

Direct answer: what is the safest way to leave digital assets to family?

The safest approach is to name the assets in your estate plan, explain where they are held, and store access details separately from your will in a secure place your executor can reach when needed. Do not put passwords, seed phrases or private keys directly into the will. A will may be read by several people during probate, while access credentials need tighter protection.

In simple terms, use three layers:

Layer 1: a will or estate plan that says the asset exists and who should receive it.
Layer 2: a secure inventory of accounts, wallets and platforms.
Layer 3: separate storage for sensitive access details such as recovery phrases, passwords and two-factor backup codes.

This is the core idea behind safe digital inheritance planning: keep the asset visible, but keep the keys protected.

What counts as a digital asset in an estate?

A digital asset is anything stored or managed electronically that may have value. Some are financial, some are personal and some are both. In an estate context, the most important question is whether the item has enough value to be included in planning and passed on to someone else.

Common examples include

Cryptocurrency such as Bitcoin, Ethereum and other tokens
NFTs held in a wallet or marketplace account
Online brokerage or trading accounts
Digital bank accounts or fintech balances
Domain names and websites
Monetised social accounts or creator platforms
Cloud storage containing valuable files, photos or records
Digital gift cards and loyalty balances
In-game items or virtual property with resale value

Not every digital item is automatically part of a valuable estate. But if it can be sold, transferred, licensed or meaningfully used by someone else, it is worth documenting.

Cryptocurrency in an estate: why it needs special planning

Crypto is different from a normal bank account. A bank can sometimes confirm identity and help with recovery. With crypto, control often depends on possession of a private key, seed phrase or exchange login. If those are lost, the asset may be unrecoverable.

There are usually three common setups

Exchange-held crypto: Bought and stored on a platform like an exchange account.
Software wallet: Held in an app or browser wallet, often controlled by a recovery phrase.
Hardware wallet or cold storage: Kept offline for security, usually with a device and recovery phrase.

Each setup creates a different inheritance challenge. Exchange accounts may require probate documents and identity checks. Self-custody wallets may require the exact recovery phrase and device access. Hardware wallets may be secure, but they are easy to lose without a clear record.

Direct answer: what do executors need to access cryptocurrency?

Executors usually need to know:

Which exchange, wallet or platform holds the crypto
The account owner’s identity details
Where recovery instructions are stored
Whether there is a seed phrase, private key or backup code
Whether two-factor authentication is enabled
Whether there are tax records or transaction histories

Without this information, the executor may know the crypto exists but still be unable to move it. That is why documenting location and access method matters so much.

NFTs in an estate: ownership is not the same as access

NFTs can represent digital art, collectibles, memberships, certificates or other blockchain-based items. Families often assume the NFT itself is enough. In practice, the executor still needs access to the wallet or account where the NFT is stored.

Three points matter most with NFTs

Where the NFT is held: In a wallet, marketplace account or custodial platform.
What rights it carries: Some NFTs only show ownership of the token, not the underlying artwork or content rights.
How it can be valued or sold: The market may be volatile and the asset may need specialist handling.

If an NFT has sentimental value, the family may want to preserve the wallet or transfer it to a designated beneficiary. If it has market value, the executor may need to decide whether to sell, distribute or retain it according to the will and estate administration rules.

Other digital assets families often forget

When people think about digital inheritance, they usually focus on email and social media. But estates can contain a wider range of valuable online property.

Examples families should check for

Domain names that generate income or support a business
Website hosting accounts and content management systems
Royalties from music, video or publishing platforms
Software licenses tied to an account
Monetised creator accounts
Online courses or digital products
Storage accounts containing important family records

For a related practical view on handling online accounts after death, see What Happens to Your Online Accounts When You Die in the UK? A Family-Friendly Guide.

How to include digital assets in a will without exposing passwords

A will should tell people what should happen to the asset, not reveal the secret details needed to unlock it. That means you can describe the asset and name the beneficiary or residue recipient, while keeping the access information elsewhere.

Good things to include in a will

A reference to cryptocurrency holdings, NFT holdings or other digital property
The person who should receive them, if your will is specific enough
A general instruction that digital records, keys and access details are stored separately
A power for the executor to deal with digital assets as part of the estate

Things not to include in a will

Passwords
Seed phrases
Private keys
Two-factor authentication backup codes
Highly sensitive recovery answers

If you want a deeper explanation of the will side of things, this article may help: How to Include Digital Assets in Your UK Will.

What happens to crypto and NFTs after death?

After someone dies, their digital assets become part of the estate if they are legally owned or controlled by the deceased. The executor then gathers information, identifies the assets, and tries to value and transfer them in line with the will and applicable law.

In practice, this process is smoother when there is a clear inventory. If the assets are hidden across multiple wallets, exchanges and devices, the executor may spend a long time trying to confirm what exists.

Typical outcomes include

Transfer to a beneficiary: If the asset can be accessed and the will supports it.
Sale and distribution of proceeds: Often used when the asset is liquid and marketable.
Retention by the estate: Sometimes used temporarily while the estate is administered.
Loss of access: If no one can find the keys or account recovery details.

The main risk is not always legal complexity. It is operational failure: missing records, forgotten devices and inaccessible authentication methods.

What executors can realistically do

Executors can only work with the information they have. Their first job is to identify the assets, secure the records and confirm the legal authority they need to act.

Practical executor steps

Locate the will and any digital asset inventory.
Identify exchanges, wallets, marketplaces and devices.
Find instructions for passwords, recovery phrases or secure vault access.
Check whether accounts require probate, death certificates or ID documents.
Record each asset’s value and keep a paper trail of actions.
Seek specialist help if the estate contains high-value or technically complex assets.

Families sometimes expect executors to “just log in” and move everything. That may work for ordinary online accounts only if the right records are available. For self-custody crypto, there is often no shortcut.

Common mistakes that cause digital assets to be lost

Many digital asset problems are preventable. The most common mistakes are simple, but expensive.

Avoid these errors

Keeping assets secret from family members or executors
Putting passwords directly into the will
Failing to record which wallets or exchanges are in use
Not updating records after moving assets to a new platform
Relying only on memory for seed phrases or backup codes
Ignoring two-factor authentication and account recovery settings
Leaving no instructions for what to do with NFTs, domains or creator accounts

Another common mistake is assuming that a digital asset is “only online” and therefore easy to sort out later. In reality, many digital assets need precise technical steps. Without those steps, value can disappear quickly.

A simple family-friendly plan for managing digital assets

You do not need to become a crypto expert to protect your family. A practical plan can be simple and effective.

Step 1: Make a list

Write down every crypto account, wallet, NFT platform and other digital asset that could matter. Include where it is held, whether it is active, and who should know about it.

Step 2: Separate value from access

List the asset in your estate plan, but store passwords and recovery details in a secure separate system.

Step 3: Add recovery notes

For each account, note how access is recovered, who can help, and whether two-factor authentication is enabled.

Step 4: Keep records up to date

Whenever you move assets, change wallets or open a new account, update the inventory.

Step 5: Tell the right people where to look

Your executor or trusted family member should know that the records exist and how to find them.

Step 6: Review after major life changes

Births, deaths, marriage, divorce, moving country or changing financial platforms can all affect digital inheritance planning.

How Inherrit can help families stay organised

The best digital inheritance plans are not complicated. They are clear, secure and easy for the right person to use at the right time. Inherrit is designed to help families organise important information without exposing sensitive data too early, which is especially useful for assets like crypto and NFTs.

If you are building a secure succession process more broadly, you may also find UK Executor Guide: Accessing Emails, Social Media and Cloud Accounts After Death useful for understanding how executors work with online accounts.

When to get professional help

Some estates are simple. Others need specialist support. Consider professional help if the estate includes:

High-value cryptocurrency holdings
Multiple wallets or exchange accounts
International platforms or cross-border ownership
Business-owned digital assets
Complex NFT portfolios
Tax or reporting questions

Professional support can be useful, but it works best when the family already has a basic inventory and a secure record of access instructions. Without that groundwork, even expert help may be limited.

Frequently asked questions

Can cryptocurrency be inherited in the UK?

Yes. Cryptocurrency can usually form part of a person’s estate and be passed to beneficiaries, sold by the executor or otherwise administered according to the will and the law. The main challenge is access.

Are NFTs treated like property after death?

Often, yes, but the practical treatment depends on the platform, the wallet, any contract terms and what rights the NFT actually gives the holder. Some NFTs are more like digital collectibles than traditional property.

Should I tell my executor my crypto password now?

You should make sure the executor knows where to find the information, but it is safer to store the password or seed phrase separately in a protected system rather than share it casually or put it in a will.

What if no one can find the private key?

If there is no backup, no recovery phrase and no other access route, the asset may be permanently lost. That is why backups and clear instructions are essential.

Do families need a lawyer to handle digital assets?

Not always. Many families can start with a simple inventory and secure storage plan. However, legal advice may help when the assets are valuable, international or technically complex.

Final checklist for families

List all crypto, NFT and digital assets
Identify the platform, wallet or exchange for each one
Store access details separately and securely
Update your will to mention digital assets where appropriate
Tell your executor where the records are kept
Review the plan regularly

Digital assets can be easy to miss, but they are often among the most valuable parts of a modern estate. A few organised notes today can save your family time, stress and potential loss later.

Ready to make digital inheritance simpler and safer? Download the Inherrit app to organise your estate information securely and help the right people find the right details when it matters most. Get started here: {{APP_STORE_URL}} or {{GOOGLE_PLAY_URL}}.