We know this feels new, but online pieces hold real value and meaning. Left unrecorded, your collection can vanish with a lost seed phrase. We recommend clear steps now so your legacy passes as you intend.
Our team explains how a simple will and practical notes give access and security. A straightforward estate plan brings clarity and removes guesswork for loved ones.
We use plain examples — such as a MetaMask wallet linked to OpenSea — to show real risks and the smooth handover that good advice creates. For tailored guidance, protect your family’s future with expert legal advice and a plan reviewed over the years.
Key Takeaways
- Record access details so your wishes are clear to executors.
- An estate plan reduces stress for family at a difficult time.
- Simple, practical steps protect a meaningful legacy.
- We provide friendly, professional advice and legal advice when needed.
- Review arrangements every few years as the world of tokens changes.
Why NFTs and digital art now need a place in UK estate planning
Many estates now include items stored behind usernames, passwords and private keys — and those need addressing. These are not just curiosities. They are valuable assets that can be missed without clear instructions.
What counts beyond tokens
We mean more than nfts. Think of online banking, investment accounts, email, cloud storage, payment platforms, domain names and websites.
Also include cryptocurrency held on exchanges and private wallets, plus social media accounts that carry sentimental or financial value.
How access can be lost
If executors never know an account exists, they cannot manage it. A lost seed phrase or an unknown marketplace login leaves holdings locked away.
Loss of mental capacity creates the same problem as death. That is why a clear inventory matters as much as a will.
Why tokens behave differently
Scarcity, on‑chain authenticity and market demand make some tokens feel like unique property while they still behave unlike physical goods.
With a short plan we can ensure digital assets are visible and transferable, stopping sentimental or valuable items from being lost.
Protecting nft and digital art in estate planning uk: the legal and practical landscape
We will explain the current legal picture in plain terms so families know what to do next.
Where the law stands: In England the courts are only just beginning to treat certain online holdings as property. The Property (Digital Assets etc.) Bill is under discussion. That Bill aims to make it clearer how such items form part of an estate.
How platform rules affect access
Ownership on a ledger can be simple, yet platform terms often control what happens to an account after death.
Marketplaces, exchanges and service providers may restrict transfers, close profiles or require proof that goes beyond a will. Those rules can block an executor’s instructions.
Smart contracts: useful but limited
Smart contracts can automate some transfers. They work well where code matches wishes.
However, a contract cannot change platform terms or force an exchange to act. It is not a full substitute for proper legal documents.
“Align legal documents with clear off-will instructions so executors can act lawfully and quickly.”
- Check platform terms as part of any plan.
- Combine a will with separate access notes for executors.
- Consider smart contracts as one piece of a wider approach.
For valuation and probate matters, see our guide on NFT valuation for probate. This helps executors value tokens and follow the correct legal way.
Building your NFT estate plan step by step
A clear, step‑by‑step record removes guesswork for executors and keeps your wishes straightforward.
Start with an inventory. List platforms, wallets, token IDs or contract addresses, approximate value and location. Keep entries short and factual.
Record ownership evidence and where records live, but never store private keys in the same place. Use separate secure storage for sensitive information.
| Action | Why it helps | Who should act |
|---|---|---|
| Inventory accounts | Shows what exists | Executor or family member |
| Note ownership proof | Aids valuation and transfer | Solicitor or adviser |
| Add a clause to wills | Authorises lawful access | Named executor |
Choose beneficiaries and decide whether to gift a specific token or pass value via the residue. Appoint a tech‑capable executor or a named digital executor, formally or by letter of wishes.
“Make updates routine — wallets change, marketplaces close, and holdings move.”
For guidance on how to include cryptocurrency and tokens in your will, see include cryptocurrency and tokens in your.
Access and security: wallets, private keys and passwords without compromising your estate
Access to crypto holdings depends on one clear fact: control is proved by private keys or seed phrases. Lose those words and the asset is effectively gone. There is no reset button with most wallets.
Passwords are different. An exchange or marketplace may allow resets. A wallet proving ownership on‑chain will not. Treat keys like the legal title to an asset, not like an account password.
Where to store access information
Keep sensitive details separate from your will. Wills can become public during probate, so never place seed words or passwords inside them.
- Use a solicitor’s sealed safe for a sealed note.
- Consider a reputable password manager with emergency access.
- Keep cold storage under controlled, documented custody.
Planning for incapacity and timely action
Time matters if funds are needed for care. A lasting power of attorney should explicitly allow attorneys to manage these assets.
“Give executors or attorneys the right information at the right time, without risking your security while you’re alive.”
We recommend a short, separate instruction letter that tells executors where secure access is kept and when to use it. That protects the whole estate and makes probate smoother.
Valuation and tax for NFTs in the UK: what executors need at probate
Executors must treat tokens like any other asset: they need clear ID, control evidence and a defensible market value at death.
How to approach valuation at the date of death in a volatile market
Values can move fast. We advise recording the date, the marketplace price and at least two supporting comparables.
Use recent sales, the marketplace floor price and dated screenshots or exportable sale histories. Keep exchange rates used for any conversion.
Inheritance Tax considerations when digital assets form part of the estate
Inheritance Tax treats tokens like other belongings for tax purposes. Executors must include them in the estate valuation for probate.
Rough guesses create problems. A documented, defensible approach reduces the risk of later challenge from HMRC.
Capital Gains Tax risks for beneficiaries who later sell inherited NFTs
For beneficiaries, the probate value usually becomes the base cost for future capital gains calculations.
If a token rises after probate, selling it may trigger a gain. Clear records of the probate value and the method used are essential.
“Document the method, date and sources used — timing and evidence matter more than intuition.”
- What executors typically need at probate: identification, proof of control (keys) and a defensible date-of-death value.
- Practical valuation approaches: recent comparable sales, floor prices and dated screenshots as evidence.
- Record-keeping tips: note the valuation method, exchange rate and where market data was taken from.
When holdings are many or high value, we recommend professional help to ensure tax duties are met fairly and accurately.
Trusts and professional support for complex NFT holdings
When holdings are significant or tied to business activity, a trust can bring clarity and calm to succession choices.
How a trust helps
A trust can specify who benefits, when they receive assets and how items are managed across generations. This reduces family friction and keeps value together.
When to consider professional help
High-net-worth families, business owners or those with many platforms should consult solicitors early. Solicitors can draft tailored clauses, appoint a tech-capable executor and advise on valuation and tax. We recommend working with financial advisers too, to plan cash flow for taxes or diversification.
“Fit new structures to existing ones so nothing conflicts when the time comes.”
- Trusts set clear management rules.
- Solicitors join wills, trusts and company holdings into one plan.
- Financial advisers help with risk and liquidity.
| Need | What a trust does | Who helps |
|---|---|---|
| Large collection | Control distribution timing | Solicitors |
| Business-linked holdings | Align company rules with succession | Solicitors, financial advisers |
| Multiple beneficiaries | Reduce disputes with clear rules | Solicitors |
For more on what counts as an online holding, see what counts as a digital asset. We help clients fit these matters into a wider estate planning strategy so families are left with practical, workable instructions.
Conclusion
A few practical choices will keep your holdings accessible for those you trust.
Start with a short inventory. Record where items live, brief IDs and who should receive them. Keep this note outside your will and in secure custody.
Set clear wishes and give lawful authority to your executor or attorney so they can act without delay. Use separate, safe instructions for any private keys or passwords.
Review the plan regularly. Platforms and markets change fast; a dated checklist helps avoid confusion and loss of value.
Take one simple step today: write the inventory and name who should handle these items, then speak to a solicitor to update your will. For practical help, see our guide to protect your family’s future.