As the world continues to become more technologically advanced, something that has grown substantially over the last decade is digital assets. However, while digital assets rise in prevalence in our everyday lives, other aspects of our lives have been slow to progress with the changes.
For years, there was significant uncertainty about how digital assets would be regulated, taxed, and transferred upon death. By 2025, these assets are now more regulated, integrating crypto tokens and other digital assets into estate planning.
However, traditional wills and probate laws weren’t designed with digital property in mind, so some adjustments are still necessary for the law to accommodate digital property. The Law Commission has been instrumental in addressing these challenges and proposing updates to existing legislation.
As leading experts in probate, at Brown Turner Ross we have been keeping up with changes to legislation concerning how digital assets are handled in wills and this guide aims to provide further insight for our clients.
Keep reading to learn more about how the law will approach digital assets in 2025 in relation to property rights and estate planning.
What Counts as a Digital Asset?
Digital Assets are anything which you hold of value which is in the virtual sphere; for example media in the iCloud, an eBay selling account, a PayPal account, Cryptocurrency, an online business, or even a social media account with incoming revenue. This also includes digital wallets, which are becoming increasingly common for storing various types of digital assets.
With the growth of Cryptocurrency and online trading, you must ensure that any money made through these routes is accounted for. This includes crypto tokens, which are a specific type of digital asset often used in blockchain-based platforms.
If you own one of these or another type of asset and are uncertain whether it qualifies as a digital asset, we strongly recommend consulting a legal professional. They can advise you on whether you need to update or review your will to accommodate this kind of asset, as you might not have owned such digital assets at the time you created your previous will.
Why Digital Assets Were Forgotten in Wills for So Long
For many years, digital assets were often overlooked in wills, largely due to a general misunderstanding about whether they needed to be included at all. This has changed, and it is now strongly advised to make specific references to them in your will. By doing so, you remove any doubt about ownership and make clear who should inherit them. If you feel your chosen executor may not be comfortable handling digital assets, you can also appoint a second executor with specific responsibility for them.
If digital assets are not mentioned, there is a real risk that executors and beneficiaries may be unaware of their existence or unable to access them. This can mean part of an estate is left unadministered, assets go unclaimed, and in cases where inheritance tax applies, executors cannot provide HMRC with a complete picture of the estate, potentially leading to further complications.
The shift in working patterns since the Covid-19 pandemic has also meant that many people now generate income through online platforms or hold investments such as cryptocurrency, increasing the likelihood that digital assets will form part of their estate. With the continued rise of crypto, digital content creators, and online businesses, it is no longer acceptable for wills to ignore these assets.
Digital Assets and Property Rights in the UK in 2025
Up until recently, one of the main reasons why digital assets were often forgotten in wills was because of uncertainty surrounding how UK law treated them. This lack of clarity meant many people neglected to include them in estate planning, but in 2025, how these assets are categorised has changed.
English courts have now confirmed that crypto, NFTs, and digital collectables should be categorised as property, meaning that they can be owned, transferred, and inherited like traditional investments. The Law Commission has played a crucial role in clarifying the status of digital assets, recognising them as “things in action” – a type of personal property right that can be enforced through legal action.
Online accounts, such as social media or cloud services, are slightly more complicated, which only highlights the importance of leaving legacy instructions concerning these accounts so that they can be better managed after your death.
With the growth of digital businesses, there has been an urgency for this type of asset to be properly categorised. Thanks to recent regulations, digital businesses are now categorised as property and can be treated as such when a will is drafted. This classification aligns with the concept of “things in possession,” which refers to tangible property that can be physically possessed.
Digital Assets in Estate Planning
With clearer recognition and the growing value of digital assets, it is now essential to include them in your estate planning to ensure that they are properly handled after your passing. This process, often referred to as digital legacy planning, has become an integral part of modern estate planning.
Unless your digital assets are mentioned in your will or you have informed your next of kin of their existence, beneficiaries may not be able to access your assets. This is particularly true for assets that require private keys for access, such as cryptocurrencies stored in digital wallets.
When estate planning, you also need to consider how HMRC will interpret your estate when you are gone. Beneficiaries could face legal consequences or fines without accurate information about your assets. A comprehensive digital estate plan can help prevent these issues.
Tax and Probate Considerations
Digital assets are subject to Inheritance Tax as part of the estate, so when you are drafting your will, it is important that you correctly declare your assets for the protection of your beneficiaries.
This highlights the importance of working with a professional to manage and declare your assets correctly. This ensures that every involved party is protected and your wishes are met.
Practical Tips for Protecting Your Digital Assets
There are ways that you can ensure that your digital assets are protected, these include:
List Your Digital Assets Clearly
Maintain a record of all your digital assets, including cryptocurrency, NFTs, online accounts, domains, and cloud storage. This doesn’t mean simply writing passwords in your will, which is unsafe, but rather developing a secure inventory or using a password manager that offers legacy access options. Creating a comprehensive digital inventory is a crucial step in digital legacy planning.
Give Executors the Right Tools
Executors must have both an understanding of your digital assets and the practical ability to access them. If your selected executor is not tech-savvy, consider appointing a second executor dedicated to handling digital assets. This helps ensure they are appropriately managed without burdening someone unfamiliar with technology. Provide information on how to access private keys for cryptocurrency and other secured digital assets.
Provide Clear Instructions
Specify who should inherit each asset, whether they should be transferred, closed, or deleted, and how they should be accessed. This clarifies your intentions and ensures your wishes are fulfilled.
Without clear instructions, you could encounter contentious probate, creating further problems for your beneficiaries.
Keep Wills Up to Date
As digital property quickly changes, it’s crucial to regularly update your will and estate plans. What is considered a valuable digital asset now, like cryptocurrency, could include new types of assets in the future.
Work with Professionals
Solicitors experienced in estate planning and digital property can help you structure your will, ensure compliance with tax obligations, and protect your beneficiaries from unnecessary disputes or financial loss. They can assist in creating a robust digital estate plan that covers all aspects of your digital assets.
How a Solicitor Can Help
If you are someone who has digital assets and you’d like to ensure that your assets are protected after you have passed, it is important that you work closely with a solicitor. Solicitors can help in the following ways:
Drafting a Will That Accounts for Digital Property
It is important that if you own any assets, digital or otherwise, you draft a will. Life can be unpredictable sometimes, and the worst can happen unexpectedly, so you must be prepared for all eventualities. A solicitor can help you draft a will, ensuring that everything disclosed and included is accurate.
A solicitor can ensure that your will specifically mentions your digital property, removing any doubt concerning whether or not these assets have been included as part of your estate. They will be able to use the correct language to ensure that any instructions you leave are legally enforceable.
Advice on Intellectual Property Rights
If you have non-traditional income sources like online businesses, social media accounts, or digital assets, a solicitor can provide detailed guidance on how to manage and handle these assets in your absence.
They will advise you on whether you should pass the assets on or sell them upon your passing, so you know exactly how your assets are being managed.
Ensuring Compliance with Tax Laws
Because they form part of your estate, digital assets are subject to Inheritance Tax. Solicitors can work alongside accountants to ensure that all of your assets are valued correctly in your will and are fully declared to HMRC.
This means that your beneficiaries or executors of the will won’t be hit with unexpected costs and bills, so they will receive the money as initially expected.
Supporting Families in Accessing Digital Assets After Death
After someone’s passing, there are often many high-emotional responsibilities, which often mean that things go overlooked or missed, and those unfamiliar with your digital assets may not know how to withdraw them.
Solicitors will provide guidance on practical tools, such as password managers or digital vaults that will allow executors of the will to access the assets without compromising security.
Protect Your Assets With Brown Turner Ross
This guide should help you better understand the change in approach to digital assets, thanks to the Property (Digital Assets) Bill.
Thanks to better regulation of digital assets, it has become clearer that these assets can be fairly and accurately divided between beneficiaries. As we become far more dependent on digital routes to make money, it is important that our wills reflect this and that we do not overlook our digital assets when planning our futures.
At Brown Turner Ross, we specialise in probate and are ready to help you draft a will that accurately represents the value of your assets. Contact us today for further advice about digital assets and support in drafting your will.