Why Cryptocurrency Must Be Included in Probate Valuations

Cryptocurrency has rapidly become a mainstream asset class, yet it remains one of the most misunderstood and easily overlooked elements of estate planning and probate. Many families do not realise that crypto holdings — whether Bitcoin, Ethereum, or smaller altcoins — must be declared as part of the estate’s financial value.
Because cryptocurrencies can hold substantial worth and fluctuate dramatically, they play a crucial role in determining inheritance tax liabilities and executor responsibilities.

With over 12 years of specialist probate valuation experience across England, Scotland and Wales — and with zero HMRC rejections — FEAC Legal understands the complexities of identifying, valuing and reporting cryptocurrency within estates.

Below is a detailed explanation of why cryptocurrency must be included in probate valuations and how it affects estate administration.

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Cryptocurrency Is Legally Considered Property

In the UK, HMRC and the courts recognise cryptocurrency as a property asset, not just a digital token.
This means:

• Crypto has financial value
• It must be included in probate paperwork
• It forms part of the deceased person’s estate
• It is subject to inheritance tax where applicable
• Executors are legally responsible for declaring it

Failing to include crypto in probate valuation is a breach of executor duty.

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Cryptocurrency Often Represents Significant Financial Value

Crypto holdings can be far more valuable than families expect. Even small amounts of digital currency stored in:

• Online wallets
• Mobile apps
• Hardware wallets
• Paper backups
• Exchange accounts

…may be worth thousands of pounds, especially if purchased when prices were low.

Some estates include:

• Substantial long-term crypto investments
• Forgotten wallets with unexpectedly high balances
• NFTs or token collections
• Staking or yield-based income
• Crypto connected to online businesses

Leaving these out of the valuation can dramatically understate the estate’s value — and lead to HMRC penalties.

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HMRC Requires Crypto to Be Valued on the Date of Death

Cryptocurrency prices fluctuate constantly. HMRC instructs that the value must be calculated at the exact date and time of death using:

• Accurate exchange pricing
• Wallet balances
• Transaction history
• Proof of holdings

This ensures inheritance tax is calculated on the correct value.

Professional probate valuers work with digital specialists to obtain precise date-of-death figures acceptable to HMRC.

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Crypto Can Be Easily Overlooked Without Professional Assistance

Crypto typically leaves no physical evidence, making it easy for families to miss.
Many estates contain crypto stored in:

• Old phones or laptops
• USB sticks
• Hard wallets
• Apps that executors cannot access
• Exchange accounts without obvious statements
• Paper seed phrases hidden in drawers

FEAC Legal’s free asset recovery service helps identify digital wallets and devices that may contain valuable crypto assets.

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Executors Are Legally Responsible for Declaring All Assets

Executors have a legal duty to:

• Locate all estate property
• Ensure accurate inventory reporting
• Declare crypto holdings to HMRC
• Prevent understatement of estate value
• Protect beneficiaries’ inheritance

Failing to report cryptocurrency can result in:

• HMRC investigations
• Fines or penalties
• Delays to probate
• Personal liability for the executor

Professional valuation protects against these risks.

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Crypto Holdings Can Be Complex and Require Specialist Expertise

Crypto valuation is rarely as simple as checking a balance.
Specialists must determine:

• Total crypto across multiple wallets
• Current access status
• Whether the deceased left seed phrases or recovery keys
• Whether funds are locked, staked or earning interest
• Whether assets are subject to platform restrictions
• The legal transferability of each type of crypto

These complexities require technical and legal understanding that general probate valuers may lack.

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Crypto May Be Connected to Online Income Streams

Some estates include:

• Monetised social platforms receiving crypto donations
• Online businesses accepting crypto payments
• Staking or yield farming income
• NFT royalties
• Subscription-based digital services

These can add significant value to the estate and must be accounted for.

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NFTs and Digital Collectables Are Also Probate Assets

NFTs can hold substantial value depending on:

• Rarity
• Ownership demand
• Market conditions
• Artist reputation
• Blockchain verification

Like cryptocurrency, NFTs must be valued accurately as part of probate.

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Why Failing to Include Crypto Causes Probate Problems

If cryptocurrency is not included in the valuation, executors may face:

• Incorrect inheritance tax calculations
• HMRC scrutiny or penalties
• Probate delays
• Beneficiary disputes
• Claims of executor negligence
• Loss of estate value if assets later come to light

Professional valuation eliminates these issues by ensuring the estate is fully accounted for.

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Why Families Choose FEAC Legal for Cryptocurrency Valuation

Executors and solicitors trust FEAC Legal because:

• We have over 12 years of probate valuation experience
• We work with crypto specialists when required
• Our reports are never rejected by HMRC
• We identify digital assets often missed by families
• We offer full photographic and documentary inventories
• We include a free asset recovery service
• We cover England, Scotland and Wales
• We ensure accurate, compliant and fully documented cryptocurrency valuations

Cryptocurrency is no longer an “optional” asset class in probate — it must be identified, valued and reported with the same level of accuracy as any other financial holding.

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Contact FEAC Legal

Email: admin@feaclegal.co.uk
Phone: 07984733931
To make an enquiry or request a valuation, please contact us.