Families may lose access to loved ones’ crypto after death as platforms are not bound by probate rules, lawyers warn

Families could be unable to access millions of pounds of cryptocurrency left by relatives because of difficulties tracing wallet ownership and the fact that crypto platforms are not legally required to facilitate probate, legal advisers have warned.

TWM Solicitors said the lack of a statutory requirement for exchanges and other crypto firms to assist executors means digital assets may not be transferred to heirs in the same way as cash, stocks or property. The warning comes as crypto ownership has risen: in 2024 the Financial Conduct Authority estimated about 12 percent of UK adults, roughly seven million people, held cryptocurrency, and price gains since then have increased the value of many holdings.

Access to cryptocurrency depends on control of private keys or on the policies of the business that holds the assets. In non-custodial setups, the owner alone holds the private key or seed phrase needed to move funds. If that key is lost, mislaid or not disclosed to an executor, the assets on the blockchain cannot be transferred, reversed or recovered. If assets are held on custodial exchanges or wallets, firms’ internal rules determine whether and how they will provide access to executors or beneficiaries.

Executors handling traditional bank accounts and investment holdings typically follow established probate procedures and are aided by rules and industry practice. Crypto platforms, by contrast, are not uniformly required to recognise or facilitate probate. Some exchanges have published processes allowing next of kin to claim assets after providing a death certificate and probate documentation; others retain discretion, have limited customer-service capacity for such cases, or require additional identity and provenance checks that can be time-consuming.

Legal advisers say the combination of unique technical protections and uneven platform policies has created an estate-planning blind spot. "Cryptocurrency does not behave like conventional property from the point of view of probate and estate administration," a TWM Solicitors spokesperson said. "Without clear instructions and secure storage of access information, families may find themselves unable to trace or access significant assets."

Estate-planning lawyers and financial advisers recommend that crypto holders take practical steps to reduce the risk of assets becoming inaccessible. Those measures include making clear, secure records of where assets are held and how they can be accessed; including digital assets in wills; appointing an executor familiar with digital assets or instructing a professional with relevant expertise; and considering the use of a trust or a custodial service that offers inheritance features.

There are trade-offs. Storing private keys or seed phrases with a solicitor, in a safety deposit box or with a specialist digital-asset custodian can help ensure access, but it may also introduce points of vulnerability if those repositories are compromised. Sharing keys with family members can facilitate transfer after death but risks loss or theft while the owner is alive. Multi-signature arrangements and services designed to facilitate post-mortem access without exposing keys to a single individual are among the technical options available, though they can be complex and may involve additional legal and tax considerations.

Executors who face potential crypto assets in an estate may need to gather detailed information about the deceased’s holdings and how they are stored, including the names of exchanges used, wallet addresses, any documentation showing ownership, and the location of private keys or seed phrases. Where assets are held with custodial providers, executors should contact the firm to establish the provider’s process for deceased customers and the documentation required. Where holdings are entirely self-custodied, the absence of private keys will typically make recovery impossible.

The immutable and pseudonymous nature of many blockchains can complicate tracing and valuation. Transactions recorded on public ledgers can show transfers and balances, but linking on-chain addresses to an individual requires evidence such as account records, correspondence with exchanges, or other documentation. Valuing holdings for probate and tax purposes will also require up-to-date price information at the date of death.

Regulatory oversight of crypto businesses varies across jurisdictions, and the legal framework for digital assets is still evolving. In the UK, the FCA monitors consumer exposure to crypto and publishes data on ownership, but it has not established a uniform requirement that platforms assist executors in the same way banks and some other financial institutions do. Industry participants and legal practitioners have called for clearer guidance and standardised procedures to protect consumers and reduce the likelihood that heirs will be locked out of estates.

For now, solicitors and advisers say the most reliable protection is careful planning. Executors and families handling estates that include cryptocurrency are advised to seek specialist legal and tax advice to determine how to document, value and transfer digital holdings lawfully and securely. Without such measures, the combination of soaring values and opaque custody arrangements could leave meaningful portions of some estates effectively irretrievable.