For probate in England, Bitcoin is usually valued at its open-market price in pounds immediately before death. Do not use the price when it is later sold or moved.
The hard part is proving the time and source used.
Summary of the process
Create a file that an executor, solicitor or HMRC officer can reproduce.
- Fix the reference moment: Record the death date, the best available time, and both UK time and UTC.
- Confirm the Bitcoin balance: Save exchange records or blockchain evidence before moving any coins.
- Select and compare prices: Capture historical GBP/BTC quotes from reliable sources at the same timestamp.
- Calculate in sterling: Show the multiplication, rounding, and any USD-to-GBP conversion separately.
- Report and retain: Put the figure in estate records and keep evidence until tax questions are settled.
For UK Inheritance Tax, use Bitcoin's open-market value immediately before death, in GBP, with a repeatable calculation.
Step 1: fix the death-time reference
Record one defensible valuation moment before checking any price.
Use UK local time and UTC on the valuation sheet. For example, write 14:32 BST, 13:32 UTC, 18 July 2026.
If the time is unknown, record that gap. Then state the time convention used for the valuation.
A daily closing price can hide a large move.
Use market value, not a daily average
Use a price immediately before the recorded death time. A daily average may be useful for a sense check only.
Bitcoin trades all day and night. A price at 09:00 can differ from a price at 23:00.
The usual error is choosing a convenient daily figure first. Fix the time first, then find the price.
⚠️ Do not mix BST and UTC. A one-hour error can select the wrong Bitcoin price.
Step 2: match balance to ownership
Save evidence of each balance before transferring, selling, or merging Bitcoin.
Capture exchange-held bitcoin
Download CSV trading histories, account statements, and balance reports once lawful access is available. Save dated screenshots that show the exchange account identifier.
An exchange may ask for probate, a death certificate, and identity checks. Its bereavement process can take weeks.
Keep access records separate from the valuation file.
Capture self-custody bitcoin
A verified public wallet address can show a balance. This remains true when the private key has not been found.
Save the wallet address, transaction IDs, and blockchain records. Also save evidence linking that wallet to the deceased.
A hardware wallet proves little on its own. The estate needs a link between the device, wallet, and deceased person.
Keep one evidence pack: death-date balance; wallet address or exchange identifier; TXIDs; CSV exports; dated screenshots; price-source screenshots or exports; GBP exchange-rate evidence; the calculation; and a short methodology note.
For UK probate, prove both authority and access. Do not treat them as the same thing.
Record each contact, request, and reply in the estate file. Keep seed phrases, private keys, and recovery words outside valuation papers.
Those secrets need a controlled and recorded access process.
For probate, evidence must show both the Bitcoin amount and why it belonged to the deceased.
This step sets the quantity for the calculation. The next step fixes its sterling value.
⚠️ Never place seed phrases or private keys in probate papers, emails, or a will.
Step 3: build the sterling calculation
Choose a timestamped GBP price and show every part of the calculation.
Compare the right price type
Use a BTC/GBP spot price for normal liquid holdings. Keep the source page or export with its timestamp.
Check at least two sources where possible. A large holding may need extra evidence about the available sale price.
The later sale price is not the death-time value.
| Price method | Best use | Main weakness | Evidence to save |
|---|
| BTC/GBP spot | Normal liquid holdings | May not reflect trade size | Timestamped quote |
| Executable bid | Large or restricted sale | Can understate broad market value | Order-book capture |
| Multi-exchange median | Checking sources | Needs matching timestamps | Three saved quotes |
| Later sale price | Reasonableness check only | Not the death-time value | Sale confirmation |
Calculate and reconcile differences
Write the calculation clearly: 0.85000000 BTC × £52,400 = £44,540. Keep matching currency evidence when converting BTC/USD into GBP.
Use a GBP/USD rate from the same period. Do not use today's exchange rate.
This is where small shortcuts cause large errors.
Bitcoin probate valuation trail
Death time
14:32 BST→Verified balance
0.85000000 BTC→Historical quote
£52,400/BTC→Estate value
£44,540
Save the source, timestamp, calculation, and any reconciliation between exchanges.
Use one stated timestamp across all sources. If quotes differ, explain why you chose one figure.
A probate Bitcoin value should let another person repeat the same calculation from the saved evidence.
A sound calculation now prevents doubt later. The next step keeps probate and CGT apart.
⚠️ Do not convert a historical dollar Bitcoin price using today's GBP/USD rate.
Step 4: report the value consistently
Enter one supported sterling figure in estate records and keep the working papers.
Separate probate from later CGT
No CGT normally arises merely because Bitcoin passes on death. A later sale, swap, or spend can create a separate tax event.
Think of probate value as the estate's starting point. A later disposal needs its own calculation.
Do not use the deceased's old purchase price for that later calculation.
Keep the method reproducible
The Inheritance Tax value and a beneficiary's CGT position are linked. They are not the same calculation.
A beneficiary usually acquires inherited Bitcoin at its death-date market value. This depends on the facts and estate administration.
For example, probate may show 0.85000000 BTC worth £44,540. If the beneficiary later sells for £49,000, £44,540 normally starts the gain calculation.
This uses UK rules, not US filing terms.
Keep the probate valuation, sale records, and later CGT calculation in separate dated files.
A clear file helps HMRC and protects beneficiaries. The next section covers shortcuts that can spoil that file.
⚠️ A later sale can check your valuation, but it cannot replace the price immediately before death.
Reject shortcuts that break the link between the death moment and the quoted price.
Avoid false precision from USD
Use a historical GBP/USD rate from the same period as the BTC/USD quote. Do not use an exchange rate from another day.
Round only at the final stage. Keep the full Bitcoin amount in the working sheet.
A neat number is not always a sound number.
Treat inaccessible assets carefully
Do not omit an inaccessible wallet because the Bitcoin cannot yet move. Record the balance, access issue, and advice received.
A private inventory can list exchanges, hardware wallets, addresses, devices, and two-factor authentication details. It can also identify encrypted recovery instructions.
Do not put a seed phrase or private key in a will. Probate papers may become visible to others.
Review the inventory after changing exchanges or replacing a device. Update it after creating a new wallet.
⚠️ Never omit an inaccessible wallet simply because its Bitcoin cannot yet be moved. Document the balance, access problem, and advice obtained.
Do not use this process alone for non-domiciled estates, overseas assets, ownership disputes, inaccessible wallets, or estates needing Inheritance Tax forms. Seek professional advice. Do not apply US Form 706 rules or US alternate valuation dates to an English estate.
Common questions
What Bitcoin price should I use for probate?
Use a supportable BTC/GBP open-market price immediately before death. Keep timestamped evidence from the chosen source.
Do I need the exact time of death for Bitcoin?
Use the exact time where available. If it is unknown, record the gap and apply one consistent UK-time convention.
Can I use the price when the executor sold the Bitcoin?
No, a later sale does not replace the death-time value. It may only support a reasonableness check.
What if the Bitcoin wallet cannot be opened?
Identify and value it if ownership and balance can be proved. Then obtain specialist advice about access and estate reporting.
Does inherited Bitcoin have a new cost basis in the UK?
For UK CGT, beneficiaries usually acquire inherited Bitcoin at its death-date market value. The estate facts and administration can affect that result.
The essentials:- Fix the death date, time zone, and valuation convention before checking any price.
- Link each Bitcoin amount to exchange records, wallet addresses, or transaction IDs.
- Use timestamped sterling market evidence and show the full calculation.
- Keep probate valuation separate from later beneficiary Capital Gains Tax decisions.
- Seek advice before filing where wallets are inaccessible, ownership is disputed, or assets are overseas.
