Bitcoin Inheritance UK: Complete Guide for Families

A comprehensive UK guide to bitcoin inheritance — how to ensure your bitcoin passes to beneficiaries without lost access, covering security, documentation, and recovery workflows.

Why bitcoin inheritance needs special planning

Bitcoin inheritance in the UK requires careful planning because bitcoin operates differently from traditional assets. There is no bank, no customer service, and no central authority to help if access credentials are lost. If your family cannot access your bitcoin wallet after your death, those assets are lost forever — not to anyone else, but simply inaccessible. This guide explains how to plan for bitcoin inheritance while maintaining security during your lifetime.

Understanding how bitcoin access works

Bitcoin is controlled by private keys — long strings of characters that prove ownership. Most people store these as seed phrases (12 or 24 words that can regenerate the keys). Whoever has the seed phrase controls the bitcoin. This creates a dilemma: share the phrase and risk theft; keep it secret and risk permanent loss. Effective inheritance planning resolves this by enabling controlled access at the right time, to verified parties.

Step 1: Document your bitcoin holdings

Create a secure inventory of your bitcoin holdings: which wallets you use, approximate values, how each wallet is accessed (hardware device, software, exchange), and any backup arrangements already in place. Do not include seed phrases in this inventory — that information must be secured separately. The goal is a reference document that helps executors understand what exists without exposing access credentials.

Step 2: Choose a recovery model

Your recovery model determines how bitcoin will be accessed after your death. Options include: a single trusted contact with full access (simple but high-risk), multi-signature arrangements requiring multiple parties to approve transactions, a professional coordination service that verifies identities before releasing information, or hybrid approaches combining elements. The right choice depends on your holdings value, family situation, and risk tolerance.

Step 3: Establish trusted contacts

Trusted contacts are people who will participate in the recovery process. They might hold part of a multi-sig key, know where backup information is stored, or verify their identity to a coordination service. Choose people who are: trustworthy, likely to outlive you or remain contactable, capable of following instructions, and not in conflict with each other. Document who they are and what role each plays.

Step 4: Create recovery documentation

Your recovery documentation should enable your executor to coordinate recovery without prior bitcoin knowledge. Include: plain-language explanation of what exists, step-by-step recovery workflows, contact details for trusted contacts and any professional services, verification requirements, and escalation procedures if primary contacts are unavailable. Store this securely — with a professional service, in encrypted storage, or both.

Step 5: Align with your will and legal planning

Your will should acknowledge that you hold bitcoin and direct your executor to the recovery documentation. Do not put technical details in the will itself — wills become public during probate. Inform your solicitor about your bitcoin holdings and the separate recovery process. Consider how bitcoin fits with your overall estate plan, including tax implications and beneficiary designations.

Common mistakes in bitcoin inheritance planning

Writing seed phrases in wills (public documents). Storing seed phrases in cloud storage without encryption. Relying on a single family member to remember everything. Not updating documentation when wallet structures change. Sharing too much information with too many people. Assuming hardware wallets will be found and understood. Each mistake increases the risk of permanent loss or theft.

How Bitzo helps with bitcoin inheritance

Bitzo provides the coordination layer for bitcoin inheritance — without ever holding your keys, without custody, and without providing financial or legal advice. We help you document your holdings, verify trusted contact identities through recorded calls and rotating codes, and create comprehensive Policy Packs. When recovery is triggered, we coordinate the process with full audit trails for fiduciary oversight. Your bitcoin remains in your control until the right conditions are met. Learn more about our crypto inheritance planning approach or speak with our team about how we can help.