If you suspect a deceased person owned Bitcoin, treat every device, note and account record as estate evidence. Preserve them before trying passwords or moving funds. One missing recovery phrase or altered device can block recovery or make valuation harder.
Bitcoin can form part of an English estate. A Grant of Probate cannot unlock a self-custody wallet or restore a lost seed phrase. First secure the evidence, prove ownership, and obtain GBP values at death. Use the Grant when dealing with exchanges. Inheritance Tax is normally due six months after the end of the month of death.
Secure bitcoin evidence in the first 48 hours
Secure every clue before attempting access.
Preserve devices and paper records
Keep each device unchanged. If a phone or laptop is switched on, photograph the screen and charger connection. Then seek advice before entering passwords or updating software.
If a device is off, leave it off. Only inspect it through a lawful and recorded process, unless there is a clear reason otherwise.
The usual mistake here is trying a few passwords “just to check”. A wrong attempt can trigger a lockout or alter evidence.
Make a 48-hour estate log
Write down every action involving a possible cryptoasset. This log protects the executor. It also helps a solicitor, tax adviser, or exchange understand what happened.
- Record each device’s location, condition, and serial number.
- Save bank statements showing payments to exchanges or Bitcoin brokers.
- Print or save exchange emails, but do not open unexpected recovery links.
- List wallet addresses only when legitimate records already show them.
- Record people who may know about shared wallets or business holdings.
A Grant of Probate proves that an executor can administer the estate. It does not supply a private key or unlock a hardware wallet. It cannot make the Bitcoin network reverse a lost-password problem.
For an England and Wales estate, Inheritance Tax is normally due six months after the end of the month of death. Start the evidence file early, even if Bitcoin access takes longer than expected.
Treat recovery as a dated sequence, not as a single task. During the first days, preserve devices, papers, and bank records. Then create an estate inventory.
Next, check for a will. Establish the personal representatives’ authority. Prepare the details needed for Probate or Letters of Administration.
Once authority is available, send verified bereavement requests to exchanges. Match released balances against statements and wallet evidence. Update the estate accounts after every movement.
Keep the first 48 hours quiet and documented.
Before final distribution, record the value at death. Also record later gains or losses, fees, sale proceeds, and beneficiary entitlements. This gives you an audit trail for HMRC, beneficiaries, or an exchange.
Preservation comes first. The next task is proving that the Bitcoin belongs to the estate.
⚠️ Do not enter seed words into a website or photograph them for cloud storage. Both actions can expose the wallet to theft.
Prove estate ownership before seeking access
Separate technical control from legal ownership.
Match bitcoin to the deceased’s records
Build an ownership file from normal financial records. Look for bank transfers to a named exchange and purchase confirmations. Also check transaction exports, tax returns, emails, and notes.
Match each item to the deceased and the holding. A wallet address alone is usually weak evidence. Addresses do not show a legal owner.
A common case is a relative finding a wallet address in a notebook. The address shows Bitcoin, but bank records show another person funded it. That may mean the coins do not belong to the estate.
Confirm who has authority to act
Check whether you are an executor, administrator, or beneficiary. A valid will appoints an executor. Without a will, an administrator may apply for Letters of Administration under intestacy rules.
Searching for Bitcoin evidence does not give a relative an independent right of access. It does not permit entry into the deceased’s phone, email, cloud storage, or financial accounts.
Personal representatives should get legal advice if authority is unclear. Do not guess passwords or bypass security. Do not ask friends to reveal confidential credentials.
Lawful clues may exist without intrusive access. Bank statements can show exchange payments. Paper tax records may list crypto trades.
Openly available correspondence may name a platform or hardware wallet purchase.
Record where you found every clue and who handled it. If a device may hold a self-custody wallet, preserve it intact. Use an authorised specialist process instead of improvised Bitcoin recovery.
Technical access and legal entitlement are different things. Next, identify the holding type before choosing an access route.
⚠️ A beneficiary does not gain authority to access estate accounts merely because they expect to inherit. Confirm the personal representative’s role first.
Choose the right bitcoin recovery route
Identify the custody type before contacting anyone.
Match the clue to the access route
| Holding type | Common clue | Safe first action | Likely access route |
|---|
| Hardware wallet | Ledger, Trezor, or similar device | Photograph and secure it offline | PIN, seed phrase, and possible passphrase |
| Mobile or desktop wallet | Wallet app or wallet file | Preserve device and login evidence | Lawful device access and wallet credentials |
| Centralised exchange | Exchange emails or bank transfers | Open a bereavement case | Death certificate, grant, and executor ID |
| Multisig wallet | Several devices or co-signers | Identify every signer | Required keys and specialist legal support |
| Unknown or inaccessible Bitcoin | Address only or incomplete phrase | Document it, but do not experiment | Forensic assessment or evidence-only valuation |
Deal safely with exchanges and wallets
Use the exchange’s official bereavement route from its verified website. Exchanges often ask for a death certificate. They may also ask for Probate or Letters of Administration.
They commonly need the executor’s photo ID and proof of address. Some also ask for proof of the executor’s relationship or authority. Submitting these details often takes between 10 and 20 minutes.
The quickest route is to send documents through a verified bereavement form. Keep copies of every file, message, and case number. This matters if the exchange asks again months later.
Never share a seed phrase with an exchange.
The custody type determines the next steps. Once you know it, you can value the Bitcoin and record later decisions correctly.
⚠️ Do not call a phone number from an unexpected email or search advert. Start from the exchange’s verified website to avoid recovery scams.
Value and administer bitcoin for tax
Value the holding in pounds sterling at the date of death.
Keep IHT and later CGT separate
Inheritance Tax and Capital Gains Tax answer different questions. Inheritance Tax concerns the value transferred on death. Capital Gains Tax can arise later if personal representatives sell or exchange Bitcoin.
The later tax position depends on the estate’s facts and available reliefs. Keep the two calculations in separate records. Think of them as two photos taken at different times.
For example, 2 BTC worth £70,000 each at death give £140,000 for IHT. If the estate later sells them for £82,000 each, the increase is £24,000. That is a post-death movement, not a new death value.
Decide to retain, sell or distribute
Record the estate’s decision before moving recovered Bitcoin. Personal representatives may retain it for a time. They may sell it for cash or distribute it in specie.
In specie means giving the actual Bitcoin rather than cash proceeds. Each choice needs a dated decision, transaction record, and clear custody trail.
If Bitcoin goes to a beneficiary, record the quantity and transfer date. Record the receiving address and the estate value used. The beneficiary may need this for a Self Assessment tax return.
The most frequent error is mixing sale records with the IHT value. Keep a separate file for each movement after death.
This guidance does not replace tailored advice for insolvent estates or disputed ownership. Seek advice if the deceased lived outside England and Wales. Do the same for overseas exchanges, tax duties, suspected fraud, business-held Bitcoin, complex multisig, or possibly unlawful device access.
For IHT, record the exact death date and time. Record the Bitcoin quantity or wallet balance shown at that point. Also record each pricing source’s time zone.
Bitcoin trades all day and night. Prices can differ across exchanges. Keep exports or screenshots from at least two established sources where possible.
Each record should show the BTC/GBP price and retrieval date. If a source quotes dollars or euros, keep the exchange-rate proof. Show the conversion to pounds sterling.
The evidence file should tell the full story.
Where coins were held on an exchange, that exchange’s trading data may help most. Compare it with wider market data if pricing or liquidity looks unusual. Keep all calculations and assumptions about inaccessible but identifiable holdings.
A sound death value supports Probate and IHT work. The records after death then protect the estate during sale or distribution.
⚠️ Do not value Bitcoin using today’s price when the death occurred earlier. Use evidence from the date and time of death.
Questions & answers
Can an executor access deceased bitcoin?
An executor can seek access to deceased Bitcoin, but Probate does not replace a missing seed phrase or private key. Exchanges may release assets after bereavement checks. Self-custody access depends on valid credentials.
Is bitcoin part of an estate in england?
Bitcoin forms part of an English estate if the deceased beneficially owned it at death. A device, password, or seed phrase alone may not prove ownership. Another person may have funded or owned the coins.
How do i value bitcoin for inheritance tax?
Value Bitcoin at its market value on the death date, using an evidenced GBP method. Keep the death time, balance evidence, price source, and currency conversion. Save screenshots in the estate file.
When is inheritance tax due after death?
Inheritance Tax is normally due six months after the month of death ends. The executor may need to report values earlier during Probate work. Gather historical pricing promptly.
Can i give a seed phrase to an exchange?
No legitimate exchange needs a self-custody seed phrase for a bereavement claim. An exchange may request a death certificate and Probate grant. It may also request executor ID and proof of address.
What if no one can access the wallet?
Bitcoin may be permanently inaccessible if the private key, seed phrase, PIN, or passphrase is missing. Preserve all clues and record attempted routes. Avoid online recovery scams and seek specialist advice before valuing or writing it off.
What matters most:- Preserve devices and written records before testing passwords or moving coins.
- Prove that the deceased owned the Bitcoin, because technical control alone is insufficient.
- Use the holding type to choose exchange documents, wallet credentials, or specialist help.
- Keep the death-date GBP valuation file separate from later sale or distribution records.
Further reading
If you want to learn more about this topic, these sources may interest you:
