Executors Face Battle to Access Digital Assets: A Wake-Up Call for Homeowner Estate Planning

What the Property (Digital Assets etc) Act 2025 does — and does not do

The Property (Digital Assets etc) Act 2025 received Royal Assent on 2 December 2025. Its primary effect is to clarify that English and Welsh courts are no longer constrained from recognising digital assets as a form of property. Before the Act, there was legal uncertainty about whether things like cryptocurrency, NFTs, and certain online account rights could be owned and transferred as property. The Act resolves that ambiguity: digital assets are now clearly a category of personal property under English law.

This matters for estates because it means digital assets can now be treated as part of an estate in the same way as physical assets — they can be bequeathed in a will, transferred by an attorney under Lasting Power of Attorney, and administered by an executor.

However — and this is the critical limitation — the Act clarifies legal status. It does not compel technology platforms to provide access. Apple, Google, Meta, and cryptocurrency exchanges operate under their own terms of service, many of which are governed by US law or by international platform policies that remain at odds with English legal rights. A death certificate and a grant of probate are often insufficient to unlock accounts on these platforms. The legal right exists; the practical pathway to exercise it remains contested and time-consuming.

The three categories of digital asset at risk

For estate planning purposes, it is helpful to think about digital assets in three categories, each presenting different challenges for executors:

• Financial digital assets: Cryptocurrency holdings (Bitcoin, Ethereum, and others), online investment accounts, digital brokerage accounts, and PayPal or other payment platform balances. These may have direct financial value. Cryptocurrency presents the most acute risk: if private keys are not documented and passed on, the holdings are permanently inaccessible. Global estimates of stranded Bitcoin alone — lost to forgotten keys or undocumented ownership — run to over $140 billion.
• Sentimental digital assets: Digital photo libraries, email archives, personal documents, and social media accounts. These may have no monetary value but significant emotional importance. Many platforms automatically terminate accounts on death or make them permanently inaccessible without the deceased's password.
• Operational accounts: Online banking access, subscription services, utility account portals, insurance policy portals, and government services accounts. Some of these may hold funds; most are needed to administer the estate efficiently. Without access, executors may face extended delays and additional costs.

For homeowners with property wealth, the financial digital asset category is particularly relevant: HMRC treats cryptocurrency as property and full inheritance tax is due on its value, even if the executor cannot practically access or sell it. An IHT bill may arise on assets that are, for practical purposes, lost.

Why this matters at the point of considering equity release

Equity release and lifetime mortgage decisions are typically taken at a significant life juncture — retirement, a health change, a family event, or a financial reassessment. These moments are also the natural time to review and update estate planning more broadly.

A lifetime mortgage reduces the value of the estate over time, as interest compounds on the outstanding loan. This means the total estate passed to beneficiaries will be smaller than if no equity release had been taken. In this context, ensuring that all other estate assets — including digital assets — are properly documented and accessible to executors becomes more important, not less. Every asset matters more when the overall estate is being reduced by a rolling interest charge.

Verity Home advisers regularly work with clients at exactly this intersection. Where equity release is being considered as part of a broader estate plan, we routinely recommend that clients also review their will, their Lasting Power of Attorney, and — increasingly — their digital asset documentation with a specialist solicitor. We can provide introductions to estate-planning solicitors experienced in digital asset matters.

Practical steps for homeowners: a digital estate checklist

Preparing your digital estate does not require technical expertise. It requires the same discipline as any other aspect of estate planning — taking inventory, documenting, and ensuring the right people have access to the right information at the right time:

• Create a digital asset inventory: List all financial digital accounts (including cryptocurrency wallets, exchanges, and online brokers), sentimental accounts (photo storage, email), and operational accounts (banking portals, utilities). Note the institution, account type, and approximate value for financial accounts.
• Document access credentials securely: Credentials should not be included in a will (which becomes a public document after probate). Instead, use a password manager or a sealed letter held with your solicitor that is accessible to your executor on death.
• Activate platform-level legacy tools where available: Apple Legacy Contact allows a nominated individual to access your Apple account after death. Google's Inactive Account Manager performs a similar function. Facebook offers a Legacy Contact for memorialisation. Use these tools — they provide a direct, platform-approved pathway that bypasses the worst of the verification difficulties.
• Refer to digital assets in your will: While specific credentials should not appear in the will, a general reference to "digital assets as documented in [reference document]" signals to executors that this inventory exists and should be sought.
• Consider naming a digital executor: If your digital estate is complex — significant cryptocurrency holdings, multiple business accounts, valuable intellectual property — a separate digital executor or a co-executor with relevant expertise may be warranted.

The IHT dimension: what digital assets mean for later-life tax planning

Cryptocurrency and other financial digital assets are treated as property for inheritance tax purposes by HMRC. This means they are included in the estate value for IHT calculations, at their market value on the date of death. The current IHT thresholds are £325,000 per person (the nil-rate band) plus £175,000 (the residence nil-rate band where the main home passes to direct descendants) — meaning a married couple passing assets to children could have up to £1 million before IHT becomes payable.

For homeowners with significant property equity — who may already be near or above IHT thresholds — any unplanned digital assets can tip the estate into higher IHT liability. Proper documentation and planning (including the use of trusts, gifts within the seven-year taper relief period, and life policies in trust) should account for the full picture, digital assets included.

Equity release and lifetime mortgage planning is one component of this picture. Verity Home advisers will always recommend clients take specialist estate planning and legal advice alongside later-life lending advice — and we can facilitate those introductions.