David King, Partner in the Private Client department at HCR Law, explains how the Property (Digital Assets etc) Act 2025 will affect cryptocurrency and other types of digital assets in estate planning.

What is the Property (Digital Assets etc) Act 2025?

The rapidly evolving landscape of technology has transformed the concept of property, introducing new categories of assets such as cryptocurrencies (‘crypto’), Non-Fungible Tokens (‘NFTs’), and other digital assets.

The Property (Digital Assets etc) Act 2025, which has completed its passage through Parliament and received Royal Assent on 2 December 2025, makes a single but pivotal change: courts are no longer constrained from recognising digital assets as property merely because they do not fall into the two orthodox categories of property. This gives the courts a principled basis to continue developing proprietary rules and remedies tailored to digital assets, including fungible and non-fungible tokens, and other value-bearing tokens.

This landmark legislation carries implications for succession planning, emphasising the importance of updating wills and educating executors on their role in administering an estate. The legislation strengthens the proprietary footing for succession, administration and recovery of digital assets on death, which may include:

• digital files
• digital records
• email accounts
• domain names
• in-game digital assets
• digital carbon credits
• cryptocurrency holdings

The Act supports clearer estate administration of crypto assets and other value-holding digital property but does not, by itself, cause digital assets to pass under conventional ‘personal possessions’ gifts.

What are considered ‘personal possessions’ in wills?

Modern will precedents typically align with section 55(1)(x) of the Administration of Estates Act 1925 as amended by the Inheritance and Trustees’ Powers Act 2014. 

The effect of the modernised definition is that ‘personal possessions’ (or ‘personal chattels’) broadly means tangible movable property, excluding money or securities for money, items used at death solely or mainly for business purposes, and property held solely as an investment. This means:

• digital assets, being intangible, are not included in the ‘personal chattels’ definition
• devices such as laptops, phones and tablets are included if owned personally and not used mainly for business
• items owned solely as investments remain excluded, which can be relevant to high-value collections

This creates a structural divergence between a gift of the device and the rights in the digital content accessible via that device.

Before 1 October 2014, ‘personal chattels’ were defined by an enumerated list of household and personal articles. This was outdated for modern estates and did not mention digital property. The 2014 reforms replaced this list with the broader, technologically neutral concept of tangible movable property, subject to the exclusions for business use, investment and money.

The modern definition improved clarity for physical items but left digital, intangible items outside the scope of chattels. That historical trajectory explains today’s drafting gap: digital assets rarely pass under a standard personal possessions clause and require express treatment if they are not to fall into residue or be left to uncertain construction.

Should testators include digital assets in their will?

Omitting digital assets from a will could lead to confusion, ambiguity and disputes among beneficiaries. By updating a will to account for these assets, individuals can provide clear instructions on ownership and transfer, minimising potential conflicts.

As the popularity of digital assets grows, a person's portfolio may increasingly comprise non-physical holdings. Therefore, it’s also important to regularly update a will to ensure that these assets are not overlooked when estate planning.

What are the challenges with digital assets for executors?

Executors play a vital role in the administration of estates, but the inclusion of digital assets presents unique challenges:

Identification and valuation

Executors must locate and assess the value of digital assets, which can often be complex and fluctuate in value dramatically. Unlike traditional assets, digital holdings may require knowledge of access credentials, such as personal ‘keys’, and platforms, such as Bynder, Binance, Coinbase and Aprimo.

Legal and security considerations

Digital assets may be governed by terms of service agreements, which can limit their transferability. Executors must also handle these assets securely to protect against fraud or hacking.

Technical knowledge

Understanding the nature of digital assets, such as blockchain technology for cryptocurrencies, is essential if the executors wish to administer an estate effectively. Executors must stay informed about emerging trends and their legal obligations relating to these holdings. 

Summary

The Property (Digital Assets etc) Act 2025 consolidates the proprietary status of digital assets, bolstering executors’ ability to control, protect and transfer such property on death. It does not, however, change the scope of ‘personal chattels’. Digital assets remain outside ‘personal possessions’ and require deliberate drafting choices.

Distinguishing sentimental digital records from monetisable digital assets, separating devices from content, and empowering executors to navigate access, IP and platform constraints are the practical hallmarks of robust, modern will drafting in the digital era.

Testators

• Inventory digital assets: Maintain a detailed list of all digital assets, including account credentials, wallets, and backup information.
• Include specific instructions: Clearly outline how these assets should be distributed and accessed. Consider appointing executors or trustees with technical expertise if necessary.
• Update your will: Digital asset portfolios can evolve rapidly. Regularly revisiting and updating wills ensures that these changes are reflected, preventing assets from being inadvertently excluded.

Executors

• Training and resources: Executors should seek training on digital asset management, including navigating platforms and understanding blockchain technology.
• Consult professionals: Collaborating with legal and financial advisors who specialise in digital assets can ensure compliance with laws and best practices.

About the author

David King is a Partner in the Private Client department at HCR Law and specialises in non-contentious Trust and Estate Administration matters.

See also

Place a deceased estates notice

The storage and retention of original wills: key considerations

The duties of an executor: what to do when someone dies

Find out more

Property (Digital Assets etc) Act 2025 (Legislation)

Administration of Estates Act 1925 (Legislation)

Inheritance and Trustees’ Powers Act 2014 (Legislation)

Property (Digital Assets etc) Bill (Parliament)

Property (Digital Assets Etc.) Bill: factsheet (GOV.UK)

Images

Getty Images

Publication updated

11 December 2025

Any opinion expressed in this article is that of the author and the author alone, and does not necessarily represent that of The Gazette.