Cryptocurrency After Death: Finding, Accessing, and Distributing

Cryptocurrency presents unique challenges for executors and families that do not exist with traditional financial assets. Unlike a bank account, there is no central authority that can reset a password or grant access on compassionate grounds. This guide explains how to locate cryptocurrency holdings, what steps to take with exchanges, how to value holdings for probate, and the tax position for the estate.

Finding cryptocurrency: what to look for

The first task is to establish whether the deceased held any cryptocurrency at all, and if so, where. Look for the following:

• Hardware wallets: physical USB-like devices such as Ledger (Nano S, Nano X) or Trezor. These are typically kept securely and may be found in a safe, drawer, or alongside other important documents
• Seed phrases: a sequence of 12 or 24 words written on paper or stamped on metal, often stored separately from the hardware wallet for security. Check notebooks, filing cabinets, and safe deposit boxes
• Paper wallets: a printed document containing a public address and private key, sometimes in QR code format
• Exchange account emails: search the deceased's email inbox for emails from Coinbase, Binance, Kraken, Gemini, eToro, or other exchanges — account registration and transaction confirmation emails will confirm an account exists
• Software wallets: applications on the deceased's phone or computer, such as MetaMask, Trust Wallet, or Exodus — look through installed applications
• Tax records: if the deceased filed Self Assessment returns, cryptocurrency gains or income should have been declared — this will confirm holdings

Bank statements may also show transfers to or from cryptocurrency exchanges, confirming that accounts were held there even if the crypto was later moved to a private wallet.

The private key problem: why this is the central challenge

Cryptocurrency held in a personal (self-custody) wallet is controlled entirely by whoever holds the private key or seed phrase. There is no bank, no company, and no government authority that can override this. If the private key or seed phrase cannot be found, the cryptocurrency in that wallet is permanently and irrecoverably lost — not to the beneficiaries, not to the estate, and not to anyone else.

This is not a theoretical risk: it is estimated that approximately 20% of all Bitcoin — worth tens of billions of pounds — is locked in wallets where the private keys have been lost. For executors, this means the search for seed phrases and private keys must be thorough and systematic before the estate is finalised.

If a seed phrase is found but it is unclear which wallet it belongs to, it can be used to restore any compatible wallet — Bitcoin wallets commonly use the BIP39 standard, meaning the same seed phrase works across many different wallet applications. A specialist in digital asset recovery may be able to assist in complex cases.

How major exchanges handle death: Coinbase, Binance, and Kraken

Cryptocurrency held on a centralised exchange (where the exchange holds custody of the assets on the user's behalf) is generally recoverable through the exchange's bereavement or next-of-kin process. Each exchange has its own procedure, but the broad requirements are similar:

• Coinbase: submit a bereavement request through Coinbase Support, providing a certified copy of the death certificate, the Grant of Probate or Letters of Administration, and identity verification for the executor. Coinbase will then facilitate transfer of the funds to an account controlled by the estate
• Binance: contact Binance Customer Support with the death certificate and proof of executor authority. Binance may require additional verification and the process can take several weeks
• Kraken: Kraken has a dedicated process for deceased account holders; contact their support team who will guide you through the documentation required
• eToro: eToro requires a death certificate, Grant of Probate, and identity documents for the executor; their support team handles these cases individually

In all cases, begin by contacting the exchange's customer support and explain that you are an executor dealing with a deceased account holder. Obtain written confirmation of what documentation is required before sending anything. Allow several weeks for the process to complete, as these are not routine transactions and may involve manual review.

Valuing cryptocurrency for probate

For inheritance tax (IHT) purposes, cryptocurrency must be valued at its market value at the exact date and time of death. This can be challenging given that cryptocurrency prices fluctuate continuously, including overnight and at weekends.

Use the closing price on the date of death from a reputable source. CoinGecko and CoinMarketCap both provide historical price data for thousands of cryptocurrencies, and major exchanges such as Coinbase also publish historical pricing. Take a screenshot or download the data showing the price on the date of death and retain it as supporting evidence for the probate application.

Where cryptocurrency was held on an exchange, the exchange's own records of the account value at the date of death may be the most straightforward evidence. Request a statement from the exchange showing the balance and value as at the date of death.

If the deceased held a significant quantity of less well-known cryptocurrencies (altcoins) that are difficult to value, consider instructing a specialist digital asset valuer. HMRC expects a reasonable and documented approach to valuation — a best efforts approach using verifiable pricing data is generally acceptable.

Capital Gains Tax on cryptocurrency in the estate

When a person dies holding cryptocurrency, the estate benefits from what is known as the CGT uplift on death. This means the cryptocurrency is treated for CGT purposes as if it were acquired by the estate at its value at the date of death (the probate value). Any growth in value during the deceased's lifetime up to death is not subject to Capital Gains Tax — it is simply part of the estate value for IHT purposes.

However, if the estate subsequently sells the cryptocurrency, or if it is transferred to beneficiaries and they then sell it, CGT becomes relevant again. The cost base for the estate is the probate value — so if cryptocurrency worth £10,000 at death is later sold by the estate for £15,000, the estate has made a £5,000 gain subject to CGT (using the estate's CGT annual exempt amount of £1,500 in 2025/26).

Cryptocurrency gains are taxed at 18% (basic rate) or 24% (higher rate) for the estate after the 2024 Autumn Budget changes. Executors should keep careful records of all acquisition dates, costs, and disposal proceeds, as HMRC's cryptocurrency tax rules require detailed reporting.