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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.
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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.
Before concluding that a private key is lost, search thoroughly. Seed phrases (usually 12 or 24 words) may be stored:
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.
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.
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.
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.
If the deceased held cryptocurrency on an exchange, the process is more straightforward:
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.
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.
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