Dealing with cryptocurrency in an estate? Here’s how we can help
Cryptocurrency is no longer just for tech experts. More and more people now hold digital assets like Bitcoin, Ethereum or NFTs, sometimes worth thousands or even millions of pounds. When someone dies, trying to deal with cryptocurrency in an estate can quickly become complicated and emotionally overwhelming, especially if little guidance was left behind.
If you're dealing with a loved one’s estate and suspect there may be crypto involved, or if you're facing disputes about who owns what, we’re here to help.
We have a team that specialises in contentious probate, which means we help resolve disputes and complications that arise during the administration of a person’s estate after they die. And as the world changes, so does the nature of these disputes.
Here are some of the ways in which cryptocurrency is changing estate administration and how we can support you through it.
1. Hidden or missing digital assets
One of the biggest problems with cryptocurrency in an estate is that it can be hard to find. If your loved one didn’t tell anyone they owned crypto or failed to leave access details behind, it can be nearly impossible to know what they had or how to retrieve it.
How we can help:
- We can assist in investigating whether cryptocurrency assets exist.
- We can seek disclosure from other family members or parties who may have accessed them.
- We can work with forensic experts to trace digital transactions where needed.
If you suspect someone has failed to declare or has misappropriated crypto assets from the estate, we can act promptly to help secure those assets and protect your position.
2. Access issues and lost keys
Cryptocurrency is secured by ‘private keys’, which are unique codes that act like a password. Without them, the crypto is essentially lost forever. Unlike bank accounts, there’s no helpline or ‘forgotten password’ option.
If you’re an executor or family member and don’t know how to access a digital wallet, or if another person has taken control of it, this can lead to serious complications.
How we can help:
- We can advise on your legal rights and responsibilities when dealing with digital assets.
- If necessary, we can apply to court to compel someone to return or disclose crypto holdings.
- We can help resolve disputes where access to wallets or accounts is contested.
3. Disagreements over who should inherit crypto
In some cases, there may be arguments about whether cryptocurrency was properly included in a will or who should benefit from it. Some people mention digital assets in informal ways (like emails or handwritten notes), which can lead to confusion or disputes.
How we can help:
- We can review the will and any surrounding documents to determine what’s legally binding.
- We can represent you if you believe someone else is wrongly claiming crypto that belongs in the estate.
- If the deceased died without a will, we can help you understand your rights under the intestacy rules.
These issues are becoming more common as more people hold cryptocurrency in an estate without formal guidance or documentation.
4. Valuation and tax complications
Crypto prices are famously volatile. What was worth £1,000 at the time of death might be worth £10,000 or £100 just a few months later. This can affect how the estate is divided and whether inheritance tax is owed.
How we can help:
- We can help executors meet their obligations, including reporting assets to HMRC.
- We can advise if disagreements arise over how much the crypto is worth or when it should be valued.
5. Preventing future disputes
If you hold crypto and are preparing your own will, it’s essential to take specialist advice. Vague or missing instructions can cause real difficulties for those you leave behind.
We offer clear, up-to-date estate planning services that take account of digital assets, ensuring that your instructions are legally valid and practically workable.
We can advise on:
- How to document your digital assets appropriately.
- The safe management or storage of private keys.
- Structuring your will to ensure your digital legacy is protected and passed on securely.
Struggling with cryptocurrency in an estate? We can help
Cryptocurrency is changing the way estates are handled and it’s adding a new layer of risk, especially when things go wrong. Whether you’re an executor unsure of how to handle crypto assets, a beneficiary who believes something has been hidden or mishandled, or someone caught in the middle of a family dispute, we’re here to help.
Our team has the legal knowledge and practical experience to deal with the complexities of cryptocurrency in an estate. We’ll work with you to protect your interests, resolve conflicts and move things forward as smoothly as possible.
Contact contentious probate specialist Kelly Gilbert on 01274 386 554 or email ku.oc1750425307.fcl@1750425307trebl1750425307igk1750425307.
