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We live in a technological time in which many aspects of life have now become partnered with of even fully engulfed by technology. Despite this, people still overlook their digitals assets when in the process of making a will. Traditionally, wills have been for physical property and assets such as cars and houses, however, people disregard the intangible assets such as crypto, digital art and music.
Property Act 202
Under the recent Property Act 2025, digital assets such as crypto and NFTs are now recognised by law as being personal property which gives people the ability to include these assets into their will. In a time where the influence of technology is rapidly increasing, this can allow people to leave their digital assets to their chosen beneficiaries under the terms of their will, which allow them to be treated like all other assets.
Regarding what is considered a digital asset, anything that one owns digitally or electronically such as bank accounts, photos, videos and online subscription services can all be considered digital assets. Due to this new Act, digital assets such as these can be shared, sold or placed in a will. Keeping records of these assets is also important as it reduces the risk of beneficiaries being left unable to access these assets which may be valuable whether monetarily or sentimentality.
Benefitting from the Property Act 2025
Like many assets, digital assets that have not been stated in a person’s will becomes a part of their residuary estate unless specifically stated in the will. This increases the importance of knowing that digital assets may be included in the will as it ensures that even digital assets will be passed down through generations.
What could be considered helpful by many is to keep track of one’s digital assets in order to dedicate certain assets to certain people. Some people could handle their digital assets themselves whilst others who are not as familiar with using the internet can hire someone solely for the handling of their digital assets. These assets which have only just been considered property recently can account for the changing society in which the digital world seems to be becoming more prominent than ever.
Digital assets and Inheritance tax
For IHT purposes HMRC treats crypto assets and other digital property as part of the estate at market value on the date of death. HMRC’s broader treatment of exchange tokens for individuals is set out in the Crypto assets Manual (CRYPTO22000 series), with situs covered at CRYPTO22600. The 2025 Act does not change any of this — it puts inclusion in the estate beyond doubt but leaves the tax rules untouched.
The £325,000 nil-rate band, £175,000 residence band (where the home passes to direct descendants), spouse transfer and the 36% reduced rate where 10% or more of the chargeable estate goes to charity all apply in the usual way.
Misconceptions of Digital Property
Not all digital content is automatically inheritable. Many services offer licences to use content rather than actual ownership of intangible products like e books or streaming subscriptions. Your will can articulate your intentions, but platform terms may restrict transferability. Executors must review the terms of each service to understand rights and limitations. In regard to the inclusion of passwords in one’s will, passwords, seed phrases and sensitive credentials should never be included in the will because it becomes a public document after probate. Instead, they should be stored in a separate secure location, and one should reference the location in their will.
If you require expert legal advice or support with any aspect of your matter, our experienced team of solicitors at Aston Bond are here to help. We are committed to providing clear, practical and tailored legal solutions to help you move forward with confidence. Contact our team today on 01753 486 777 or email info@astonbond.co.uk to discuss how we can assist you.
