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Bitcoin inheritance in the UK

If you hold your own keys and something happens to you, your Bitcoin could be lost for good unless someone you trust knows how to reach it. Planning takes an afternoon. This is general information, not legal or tax advice.

The problem

Self-custody means nobody can freeze or take your Bitcoin. It also means no bank can hand it to your family. If the only person who knows where the recovery words are is you, the coins can be lost forever. If you hold Bitcoin on an exchange, your executors can usually claim it with the right paperwork, but they still need to know the account exists.

A simple plan

1. Make a list of what you hold and where. Which wallets, which exchanges, roughly what. Do not include recovery words in this list.
2. Write a letter of wishes or instructions. Explain in plain words what a hardware wallet is, where the device and the backup are kept, and which app to use. Assume the reader knows nothing about Bitcoin.
3. Keep the backup safe but findable. For example, the recovery words in a sealed envelope at home, and the instructions with your will. The two together should be needed, not either one alone.
4. Name a trusted person who can help. Someone technical your family trusts, and say so in the letter.
5. Review it once a year. Wallets and amounts change.

Wills and executors

Bitcoin is property and can be left in a will like other assets. In England and Wales a will becomes a public document after probate, so never put recovery words or a PIN in the will itself. Mention that you hold digital assets and where instructions can be found. A solicitor can help you word it. Scotland and Northern Ireland have their own rules, so check locally.

Inheritance Tax

Bitcoin counts towards the value of your estate for Inheritance Tax, in the same way as other assets. Your executors will need a pound value at the date of death. Records help here too. See our crypto tax records guide.

What to avoid

• Putting recovery words in a will, email, cloud storage or a photo.
• Giving one person everything with no checks.
• Clever puzzles or hidden codes your family will not be able to solve.
• Paying anyone who promises to "recover" or "inherit" Bitcoin for you. See how to report a scam.

Start with a solid backup: how to back up a seed phrase.

Not legal or tax advice. General information only. Speak to a solicitor for your will.

Questions people ask

Can I put my seed phrase in my will?
No. In England and Wales wills become public after probate. Say where instructions are kept instead, and keep the words somewhere private.

Is Bitcoin subject to Inheritance Tax in the UK?
Yes. It counts towards the value of your estate like other assets.

What happens to Bitcoin on an exchange when someone dies?
Executors can usually claim it by contacting the exchange with a death certificate and grant of probate, as long as they know the account exists.

Not financial advice. General education only. Do your own research.