Cryptoassets in a Deceased Estate 2026/27 — IHT400 and Records

Cryptoassets can form part of a deceased person’s estate. HMRC’s current guidance tells personal representatives and agents to look for cryptoassets, include them in the estate information where appropriate and consider the separate tax consequences after death. A wallet being digital, self-custodied or difficult to access does not by itself mean it can be ignored.

The practical task is to build an evidence trail: identify possible holdings, establish ownership, preserve access information without sharing secrets insecurely, obtain a defensible date-of-death value and record any reason an asset cannot currently be accessed.

Why cryptoassets need a separate estate check

Cryptoassets may not appear in a conventional investment statement. They can be held through an exchange, a trading platform, a mobile application, a hardware wallet or a software wallet. The private key or recovery phrase may be stored separately from the device that displays the balance.

HMRC’s Cryptoassets Manual says cryptoassets are treated as assets of the estate in much the same way as bank accounts, property, shares and investments. The wider IHT manual also explains that “property” for Inheritance Tax purposes includes cryptoassets.

This does not mean every cryptoasset automatically creates an IHT bill. It means the asset should be identified, valued and considered as part of the estate before the personal representative decides what information HMRC needs.

How to look for cryptoassets

HMRC’s checklist includes the following types of enquiry:

Treat recovery phrases, private keys and authentication codes as highly sensitive. The personal representative should use a secure process and obtain appropriate specialist help where access, ownership or cybersecurity is uncertain. Do not publish secrets in an estate file or send them through ordinary email without protection.

Valuing cryptoassets for the estate

If a cryptoasset is identified, HMRC says its value at the date of death should be provided in the estate information where appropriate. The valuation evidence should be retained with the estate records. Depending on the asset, the evidence may include an exchange statement, a transaction history, a market-price record, the quantity held and the method used to convert the value into sterling.

The correct approach can be more difficult where the token is thinly traded, held across several wallets, subject to a platform freeze or connected with a decentralised protocol. A personal representative should not invent a price or treat an app balance as automatically conclusive. Record the source, date, time, quantity, currency conversion and any material limitation in the evidence.

Reporting on the IHT400

HMRC’s February 2026 Trusts and Estates Newsletter says cryptoassets are part of the estate for Inheritance Tax purposes and should be considered when completing form IHT400. The newsletter directs readers to confirm whether cryptoassets are held and to report them in box 76, with details in the Additional information section.

The form and current notes should always be checked before filing because the estate’s assets, exemptions, reliefs, residence and reporting route affect what is required. A cryptoasset entry is not a substitute for determining the full estate position, and a low or uncertain value does not remove the need to explain the evidence.

What if the wallet cannot be accessed?

An inaccessible wallet is still an issue to investigate. HMRC’s Cryptoassets Manual says that if cryptoassets are identified but believed to be inaccessible, the personal representative should explain why and give the believed value in the additional information box of the IHT400.

The explanation should be factual and proportionate. It may cover the missing recovery phrase, a locked exchange account, a failed device, an unresolved identity check, a disputed ownership position or another documented barrier. Keep records of enquiries made, providers contacted and any professional advice obtained.

Inaccessibility is not the same as non-existence, and it is not a reason to guess. If the value or ownership cannot be established, explain the uncertainty and ask HMRC or a suitably qualified adviser how the return should be completed.

Tax after the date of death

The estate’s tax work does not necessarily end when the date-of-death value is recorded. If the personal representatives later sell or exchange an asset, there may be Capital Gains Tax implications on the change in value after death. Cryptoasset activity that produces income can raise Income Tax questions for the estate. HMRC’s general estate guidance also explains that income received while assets are being administered can need separate treatment.

Keep the date-of-death valuation and every later transaction separate. A later sale price is not automatically the date-of-death value, and a transfer to a beneficiary is not the same event as a disposal to a third party. Specialist advice may be needed for staking, liquidity pools, lending, mining, forks, airdrops, jointly held assets or an overseas-residence question.

Work in the right order after a death

The personal representative should first secure the evidence, then identify ownership, then value and report the estate asset. Do not move coins between wallets simply to make the estate file look tidy before ownership and access have been established. A transfer can create a new transaction record, incur network fees, alter the evidence trail or create a security risk. Record the reason for any transfer, the source and destination, the transaction identifier and the person who approved it.

Separate a confirmed balance from an indication that the deceased once used a service. A bank payment to an exchange may be an investment, a purchase, a withdrawal, a transfer to another person or an account that was later closed. An app icon may show a wallet without showing the current balance. Reconcile the evidence with exchange statements, blockchain records, devices and any instructions left by the deceased. If ownership is disputed, document the competing evidence instead of assigning the asset to the estate without explanation.

Secure access without losing the audit trail

Private keys, seed phrases, passwords and multi-factor authentication codes should be handled through a controlled process. The executor may need a specialist who understands both estate administration and wallet security. Do not put a seed phrase in the IHT400, an ordinary email or an unencrypted shared spreadsheet. Keep the tax evidence separate from the secret that allows a transaction, with access limited to the people who need it.

An exchange may require a death certificate, grant of representation, identity checks and estate documentation before releasing information or funds. A self-custodied wallet may not have a customer-service route at all. Keep a contact log showing the provider, date, request, response and next action. An unanswered request is evidence of an investigation, not proof that the asset does not exist.

If a device or wallet is damaged, do not repeatedly guess a password or recovery phrase. Repeated attempts can lock an account or destroy access. Preserve the device and seek appropriate technical assistance. The estate file should explain the access limitation, the steps taken, the believed holding and any professional cost or risk involved.

Valuation evidence for unusual tokens

Date-of-death valuation is straightforward only when the asset is liquid and actively traded. For a thinly traded token, a stablecoin with a depeg event, a governance token, an NFT, a liquidity-pool position or a locked asset, record more than a single screen price. Note the quantity, market or protocol, time zone, price source, sterling conversion, liquidity and restrictions on sale or transfer.

If different sources show different prices, explain the source selected and why. Keep screenshots or downloaded statements where permitted, but also record the URL, timestamp and calculation. Do not use a later price simply because it is easier to obtain. If the value is uncertain, provide the believed value and the limitation in the additional information rather than presenting an unverified number as exact.

An estate may discover further assets after the IHT400 is submitted. Preserve the original return and contact HMRC or the adviser about the appropriate correction or account process. Do not silently add a later discovery to a working spreadsheet and assume the original filing has been updated. The estate record should show when the asset was discovered, what was known at the filing date and how the new information was handled.

Keep estate tax records separate from beneficiary records

The estate's date-of-death value, a later disposal value and a beneficiary's eventual acquisition record serve different purposes. A beneficiary who receives cryptoassets may need the transfer date, quantity, valuation and transaction history for later tax reporting. The personal representative should provide a clear handover pack, but should not erase the estate's original evidence after distribution.

Track rewards, staking, lending interest, mining, airdrops and transaction fees after death in a separate schedule. The tax character may differ from the asset's value for IHT, and the person or estate receiving the income may differ. Do not net post-death rewards against the date-of-death asset value. Record the asset, date, gross amount, wallet or platform, sterling conversion and recipient.

Complex estates may need a probate solicitor, tax adviser, valuation specialist and digital-asset security specialist working together. Ask each adviser to state which question they have answered: ownership, valuation, IHT reporting, access, post-death CGT or income. This avoids treating a wallet-recovery opinion as a tax valuation or treating an IHT figure as a complete post-death tax record.

Frequently Asked Questions

Start with HMRC’s Cryptoassets Manual guidance on Inheritance Tax and the Trusts and Estates Newsletter. For related context, see the UK Inheritance Tax guide, IHT reference-number guide and cryptoasset tax guide.

Official sources

• HMRC — Agent Update 147: cryptoassets and deceased estates — current estate-administration update.
• HMRC — Cryptoassets Manual: Inheritance Tax — cryptoassets and estate property.
• HMRC — Trusts and Estates Newsletter, February 2026 — IHT400 and box 76 reporting context.
• HMRC — IHT Manual: what is property for Inheritance Tax — estate-property framework.
• GOV.UK — Managing and selling assets in an estate — personal-representative process.

This guide is general educational information for UK estates in the 2026/27 context. The will, ownership evidence, valuation, access facts, IHT400 instructions and current HMRC guidance control the outcome. It is not probate, valuation, cybersecurity, tax or legal advice.