Cryptocurrency in an Estate: What If No Private Key Is Found?

What happens if cryptocurrency is found in an estate but the private key cannot be located?

1Without the private key or seed phrase, cryptocurrency held in a self-custody wallet is permanently and irretrievably inaccessible — there is no recovery mechanism.
2For IHT purposes, HMRC expects the cryptocurrency to be reported at its value at date of death, even if it cannot be accessed.
3Cryptocurrency held on an exchange (Coinbase, Binance, Kraken) can be claimed by executors by contacting the exchange with the grant of probate and death certificate.
4Search thoroughly for seed phrases, hardware wallets (Ledger, Trezor), paper wallets, and password manager entries before assuming the key is lost.
5The 2023 Law Commission report confirmed that cryptocurrency is a form of personal property in English and Welsh law.

Cryptocurrency in an estate raises two distinct problems: finding out what the deceased held, and then accessing it. If no private key or seed phrase can be found for a self-custody wallet, the funds are almost certainly inaccessible. Exchange-held cryptocurrency is different — it can usually be claimed through the exchange's bereavement process.

Self-custody vs exchange-held crypto

Cryptocurrency can be held in two fundamentally different ways:

Type	Access controlled by	On death
Self-custody wallet	Private key / seed phrase held by owner	Inaccessible without the key — permanently lost if key not found
Exchange account (custodial)	Exchange holds the key; user has account login	Contact exchange with death certificate + grant of probate

Self-custody wallets include hardware wallets (physical devices like Ledger and Trezor), software wallets (apps), and paper wallets (printed keys). Exchange accounts include services like Coinbase, Binance, Kraken, and others.

Searching for private keys and seed phrases

Before concluding that a private key is lost, search thoroughly. Seed phrases (usually 12 or 24 words) may be stored:

On paper in a filing cabinet, safe, or personal documents folder
Engraved on a metal plate (sold specifically for seed phrase backup)
In a password manager (1Password, Bitwarden, LastPass) — check the deceased's devices
In a digital notes app or encrypted file on a computer or phone
Stored with a solicitor or in a letter of wishes
Memorised (rarely helpful after death)

Also look for the hardware wallet device itself — a Ledger or Trezor without the seed phrase is useless, but the seed phrase without the device allows wallet recovery on a new device.

Check the deceased's email and browser history for clues — evidence of an exchange account (welcome emails, verification codes) is very helpful.

When no key is found

If the private key cannot be found after a thorough search, the cryptocurrency in a self-custody wallet is almost certainly permanently inaccessible. There is no central authority, no customer service, and no recovery mechanism for decentralised wallets. The blockchain records the existence of the funds, but without the key, they cannot be moved.

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Some services claim to be able to recover lost cryptocurrency, but the vast majority are scams or ineffective. The only genuine technical approaches involve attempting to guess or brute-force a PIN (where a hardware wallet is present but only the PIN is unknown) — some specialist firms offer this for a significant fee, but success is not guaranteed.

IHT and tax treatment of inaccessible crypto

For IHT purposes, HMRC takes the position that the cryptocurrency forms part of the taxable estate at its market value on the date of death — even if it cannot be accessed. The executor must report it on the IHT return (IHT400) at its value at the date of death.

If it later becomes clear that the cryptocurrency was genuinely inaccessible (because the key is permanently lost), a claim for relief may be possible — but this is uncharted territory and HMRC guidance does not yet specifically address this scenario. Legal advice should be sought.

For the IHT context, see our inheritance tax UK 2026–27 guide.

Claiming exchange-held cryptocurrency

If the deceased held cryptocurrency on an exchange, the process is more straightforward:

Identify the exchange (check emails, browser bookmarks, apps)
Contact the exchange's bereavement or deceased accounts team
Provide a death certificate and, usually, the grant of probate
Follow the exchange's verification process (some require notarised documents)
Once verified, the exchange will transfer the funds to the estate or to a designated wallet

The process varies by exchange. Coinbase, for example, has a formal deceased user process accessible via their support page. Smaller or overseas exchanges may be more difficult to deal with.

Preventing the problem: digital legacy planning

The best solution is prevention. Anyone who holds significant cryptocurrency should include their seed phrase, wallet addresses, and exchange login instructions in a secure location accessible to their executor. This should not be in the will itself (which becomes a public document on probate) but in a sealed letter of wishes stored securely with the solicitor.

See our complete guide to digital assets after death and our letter of wishes guide for how to document this effectively. For storing a will safely alongside crypto instructions, see our storing a will safely guide. For the executor's first steps, see our executor first steps guide. For the broader estate administration process, see the estate administration checklist, complete UK probate guide 2026, applying for probate, IHT400 guide, and collecting assets after probate guide. Farra can help — get started here.