HMRC inheritance tax and cryptoassets in the UK: what executors need to evidence
Cryptoassets form part of an estate. Here is what executors and professionals need to evidence, how valuations work in practice, and how to avoid avoidable delays.
Introduction
Cryptoassets can form part of an estate like any other asset, but they often fail in practice because access and evidence are missing. Executors and families can be left with uncertainty, disputes, and a slow administration process. Non-custodial coordination. Not financial advice. Back to Insights: /insights
The practical problem: valuation, access and proof
Inheritance administration typically needs three things to stay orderly: 1. What existed at the relevant time (inventory) 2. What it was worth (valuation method) 3. Who can act (authority and access) Crypto commonly breaks all three. Without proper documentation, executors face delays, disputes, and potential legal complications.
Why record keeping becomes an inheritance issue
Even if the client was not thinking about tax, HMRC expects records and executors need a defensible narrative. HMRC Cryptoassets Manual emphasises record keeping at CRYPTO10400, which becomes the foundation for estate work later. Good records during lifetime directly translate to smoother estate administration.
What professionals should put in place before an emergency
Step 1: Create an estate-friendly evidence pack including: - List of platforms and wallet types - Device inventory (what devices exist, where) - Public addresses and identifiers where appropriate - Named trusted contacts and escalation order Step 2: Establish a first 48 hours executor workflow. Executors need an ordered plan: confirm death or incapacity, secure devices, contact the right professionals, and follow a pre-agreed recovery pathway. Step 3: Build scam defence during probate. Families are often targeted with recovery offers when they are vulnerable. Share guidance about crypto recovery scams early.
What Bitzo changes
Bitzo helps clients and professionals build recoverability into a real-world plan without custody. What we provide: 1. Documented recovery workflows suitable for executors 2. Verified contacts across the client professional network 3. Evidence packs designed to reduce delays and disputes Learn more at /how-it-works (How It Works), /security (Security), /inheritance (Inheritance), and /advisers (For Professionals).
Quick checklist
Executor preparation checklist: 1. Create inventory of all crypto platforms and wallets 2. Document device locations and access methods 3. Record public addresses and account identifiers 4. Establish trusted contact list with verification 5. Define first 48 hours action plan 6. Brief family on scam risks during probate 7. Align with will and estate documentation 8. Schedule periodic reviews to keep information current
Next steps
Ready to help clients with crypto planning? Explore our adviser programme at /advisers or book a call at /book. Related reading: /insights/hmrc-crypto-tax-record-keeping-uk and /insights/seed-phrase-storage-best-practices-uk Back to Insights: /insights
Frequently Asked Questions
Are cryptoassets subject to inheritance tax?
Yes, like any other asset. Value must be declared and may be taxable depending on estate size and available exemptions.
What if access is lost?
You may still need to declare estimated value and seek professional help reconstructing access. Proper documentation beforehand prevents this scenario.
Can executors request data from platforms?
Potentially, but requirements vary by platform and delays are common. Pre-documentation significantly reduces these challenges.
What is the biggest risk for estates?
No inventory, no access plan, and no verified contacts, leading to disputes and delays that can extend probate by months or years.
Does Bitzo hold assets during probate?
No. Bitzo is entirely non-custodial. We never hold, store, or request private keys or seed phrases.
Where should an executor start?
Secure devices, identify platforms and wallets, then follow a documented recovery workflow with verified contacts.
How does Bitzo verify trusted contacts?
Through recorded calls, rotating verification codes, and cross-referencing against documentation. Every step is logged with full audit trails.
Can Bitzo work with existing estate planning?
Yes. Our Policy Packs are designed to complement existing wills, trusts, and estate structures without replacing legal documents.
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