# How UK executors handle hardware wallets, seed phrases and multisig during probate > Family & care · Last updated 26 May 2026 Canonical HTML: https://moneyguide.org.uk/family-life/executor-digital-assets-probate/ Markdown mirror: https://moneyguide.org.uk/family-life/executor-digital-assets-probate.md ## Quick answer Being named executor used to mean dealing with bank accounts, a house and a Premium Bond holding. Being named executor used to mean dealing with bank accounts, a house and a Premium Bond holding. Today it can also mean recovering a hardware wallet, restoring a multisig setup, contacting half a dozen exchanges, and valuing an NFT collection — usually without any technical background. This guide sets out what UK executors should do, in what order, when an estate includes digital assets. ## Key facts - Do not, under any circumstances, type a discovered seed phrase into a website or app you do not 100% trust — phishing 'wallet checker' sites are the leading cause of crypto loss in estate administration. - Secure first, value later: photograph and bag any hardware wallets, seed-phrase backups and notes; do not move funds until you understand the structure. - Multisig wallets need a quorum of keys to spend — if the deceased held one of three keys you may still be able to recover by combining their key with two other co-signers (commonly the surviving family or service co-signers). - Exchange accounts: every major UK-facing platform has a deceased-account process; expect to provide a death certificate, grant of probate (or Confirmation) and identification of the personal representative. - Get specialist help for estates with material crypto holdings — the Society of Trust and Estate Practitioners (STEP) and the Law Society both publish referral resources. ## Step 1 — secure everything before you do anything When you take possession of the deceased's effects, look out for: hardware wallets (small USB-like devices, often branded Ledger, Trezor or Coldcard); seed-phrase backups (12 or 24 words on paper, metal cards or punched into steel plates); printed wallet addresses; and any reference to exchanges, brokers or 'self-custody'. Bag and label each item. Store hardware wallets and seed-phrase backups in a locked drawer or safe and do not connect, scan or type anything anywhere yet. The most common way executors lose estate crypto is to enter a seed phrase into a fake 'wallet recovery' site found via search. ## Step 2 — find and contact the exchanges Check the deceased's email inbox for confirmations from exchanges (Coinbase, Kraken, Binance, eToro, Bitstamp, CEX, Revolut, etc.). Check phone authenticator apps for entries that suggest exchange accounts. Check bank statements for transfers to or from exchange names. Each platform has a deceased-customer process. Generally you'll need: a certified copy of the death certificate; the grant of probate or Letters of Administration (or Confirmation in Scotland); proof of your appointment; and identity verification for you. Once verified, the platform either transfers the balance to a nominated bank account or asks for instructions to liquidate the holdings in fiat. ## Step 3 — valuing for IHT and recovering self-custody For IHT400 you need a sterling market value at the date of death. For traded tokens, take an average of leading exchanges on that date and keep dated screenshots. For thinly traded tokens, NFTs or DeFi positions, instruct a specialist valuer. To recover self-custodied assets, the standard tool is the seed phrase. Restore the wallet on a new device of the same type (or a software wallet) — the funds then become spendable by the new device. For multisig, you need a quorum of co-signers; depending on the scheme, this may mean co-operating with a service provider or with surviving family who hold the other keys. Never restore a wallet on a public, shared or untrusted device. Use a freshly factory-reset machine where possible. ## Step 4 — disposal, tax and distribution If you sell assets during administration to raise funds for IHT or distribution, the estate is treated as making the disposal. Any gain between date of death and date of disposal is chargeable to CGT at estate rates (24% currently for non-residential gains above the £1,500 annual exempt amount for estates in the first three tax years). If beneficiaries take assets in specie (e.g. they take the crypto rather than the cash), the base cost in their hands is the probate value. Any later gain when they sell is on the difference between sale price and that probate value, not the deceased's original cost. Keep a clean audit trail for HMRC of every wallet, transaction and valuation. ## Frequently asked questions ### Am I personally liable if I lose the crypto? Executors who act prudently and reasonably are protected; executors who are negligent (e.g. typing the seed phrase into a phishing site, or selling at the wrong moment without authority) may be personally liable. If you are unsure, get professional help and document your decision-making. ### Can I log in as the deceased? It is technically a breach of most exchange Terms of Service and, in extreme cases, may engage the Computer Misuse Act 1990. Use the formal deceased-customer process instead. For self-custody wallets there is no third-party login — restoring with the seed phrase is the standard, lawful recovery method. ### What if there is no seed-phrase backup? Without the seed phrase, self-custodied crypto is effectively unrecoverable. There is no 'forgotten password' service for self-custody by design. The asset must still be valued for IHT, even if it cannot be recovered, unless you can demonstrate to HMRC that it has been irretrievably lost. ### How long does this all take? Allow significantly longer than for a normal estate. Exchange release processes can take weeks to months; valuation of illiquid tokens or NFTs can take longer still. Many practitioners suggest 12–18 months for crypto-heavy estates compared with the typical 6–12 months for cash-and-property estates. ## Primary source https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual ## Related - [Digital assets in your will](https://moneyguide.org.uk/family-life/digital-assets-in-your-will/) - [Probate process](https://moneyguide.org.uk/family-life/probate-process/) - [IHT on crypto](https://moneyguide.org.uk/benefits-tax/inheritance-tax-on-crypto/) --- Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.