Crypto Inheritance Planning UK: A Complete Guide for Families

A comprehensive UK guide to crypto inheritance planning — how to document wallets, verify trusted contacts, and ensure digital assets pass to beneficiaries without lost access.

What crypto inheritance planning is

Crypto inheritance planning is operational planning for recovery and handover of digital assets — not sharing private keys or seed phrases. It focuses on ensuring that when the time comes, verified trusted contacts can coordinate with executors and beneficiaries to recover access through documented workflows, without ever requiring the original holder to expose sensitive credentials in conventional documents or to untrusted parties.

The two failure modes: lost access and unwanted access

Most families fail at crypto inheritance for one of two reasons. Lost access occurs when no one knows the wallets exist, where keys are stored, or how to recover them — assets become permanently inaccessible. Unwanted access occurs when keys are shared too broadly or stored insecurely, exposing holdings to theft or unauthorised transfers. Effective planning addresses both risks simultaneously: ensuring recovery is possible while limiting exposure to only verified parties at the right time.

Inventory: what to record and how to keep it safe

A complete inventory should record: which wallets exist and their approximate holdings, what type each wallet is (hardware, software, exchange, multisig), how each wallet is accessed (device, app, login), who currently has access or knowledge of each wallet, and any backup arrangements already in place. Critically, do not place seed phrases or private keys in conventional documents such as wills, letters of wishes, or shared cloud storage. These should be secured separately with appropriate access controls.

Choosing a recovery model (simple to advanced)

Recovery models range from simple to advanced. Single-wallet documented recovery involves one wallet with clear instructions for a single trusted contact. Compartmentalised exposure caps split holdings across multiple wallets so no single recovery path exposes everything. Multisig role-based signers require multiple parties to authorise transactions, distributing control. Hybrid models combine elements — for example, day-to-day spending in a simple wallet, long-term holdings in multisig with role-based signers, and a documented escalation path if primary contacts become unavailable.

Verification: how to stop impersonation during recovery

During recovery, the biggest risk is impersonation — someone claiming to be an executor or beneficiary who is not. A practical verification protocol includes: recorded video or phone calls with all parties, rotating verification codes issued at time of contact (not reusable), authority checks against the Policy Pack and legal documentation, cross-referencing of executor/beneficiary claims, and escalation procedures if any check fails. Every step should be logged with full audit trails.

Documentation that executors and solicitors can actually use

Executors and solicitors are not crypto experts. Documentation must be structured for non-technical professionals. A Policy Pack approach includes: a plain-language overview of what exists and how to proceed, step-by-step recovery workflows for different scenarios, defined roles (who does what, in what order), contact details for all relevant parties, and evidence retention requirements. The goal is a self-contained reference that allows an executor to coordinate recovery without prior crypto knowledge.

Aligning with your will and professional advisers

Crypto inheritance planning should align with existing estate planning. Key alignment points: ensure your will acknowledges the existence of digital assets (without publishing sensitive access details), inform your solicitor or estate planner that a separate crypto recovery process exists, provide your executor with a reference to the Policy Pack (not the keys themselves), and consider whether any trusts or other structures should reference digital assets. This is not financial or legal advice — consult your professional advisers for specific guidance.

How Bitzo fits (non-custodial, UK-focused)

Bitzo coordinates verification, documentation, and audit trails for crypto inheritance — without ever holding custody, without ever requesting seed phrases, and without providing financial or legal advice. We verify trusted contact identities through recorded calls and rotating codes, create and maintain comprehensive Policy Packs, and coordinate recovery workflows when triggered. The client retains full control of their assets at all times. Bitzo is UK-based and focused on UK families, executors, and professional advisers. Learn more about our crypto inheritance planning service.