Crypto assets could be lost upon death regardless of wills, warns lawyer
As crypto assets are not automatically accessible or even traceable through existing methods, it prompts calls for reform to wills as millions of Brits risk losing assets upon death.
Law firm TWM Solicitors has warned that, without reform, the families of people who have crypto assets could lose access to millions of pounds that they would otherwise inherit from a deceased investor.
According to the Financial Conduct Authority’s (FCA) 2024 survey, approximately 12 percent of UK adults, or seven million people, now own cryptocurrency.
Stuart Downey, partner at TWM Solicitors, explained: “The main problem is that crypto assets are decentralised and often under a pseudonym.”
Additionally, crypto is usually further secured by passwords, private keys, or seed phrases, and if lost, the assets are irretrievable.
“To look for most normal financial assets, you can conduct a Financial Asset Search, which is relatively inexpensive and contacts hundreds of organisations,” she noted.
“However, as far as I am aware, there’s no such thing for cryptocurrency. Even if there were, it is unlikely to work for private wallets,” Downey added.
This comes after City PM reported in May that almost half (49 per cent) of UK millennials plan to invest in digital assets, such as cryptocurrencies, in their investment portfolios.
“It’s the locating and accessing of the assets that needs a solution,” stated Downey.
The law firm urges reform, advising investors to draft their Wills to ensure their beneficiaries understand the value of digital assets and the instructions on how to access them.
“Assuming digital assets will be automatically inherited after death may result in them being lost forever,” Downey added.