Digital Assets Formally Recognised as Personal Property 

This week marks a significant development in UK property law as the Property (Digital Assets etc) Act received Royal Assent, formally recognising digital assets as personal property. This long-awaited clarification will have meaningful implications for probate practitioners, estate administrators, legal professionals and heirs – particularly at a time when digital holdings are becoming a routine part of modern estates. 

What the New Legislation Means for Probate and Estate Administration 

Until now, many forms of digital property – such as cryptocurrency, NFTs and other token-based assets – sat in a legal grey area. Their ownership and transferability were often uncertain, complicating probate processes and raising questions around valuation, entitlement and estate distribution. With the rapid expansion of digital wealth, this ambiguity has created administrative challenges for practitioners and occasionally led to disputes or delays. 

A Clearer Legal Framework for Modern Assets 

The new Act formally recognises digital assets as personal property, enabling them to be treated in the same manner as traditional, tangible assets. This is an important shift. By establishing a clearer legal basis for ownership and transfer, the legislation gives executors, beneficiaries and legal teams greater confidence when dealing with:  

• Cryptocurrencies (e.g., Bitcoin, Ethereum and similar blockchain-based tokens) 

• Non-fungible tokens (NFTs) 

• Digital collectibles and tokenised assets 

• Emerging blockchain-based value systems 

With this clarification, digital assets can be included in estate accounts, managed as part of a grant application and distributed to beneficiaries with the same legal certainty as physical property or financial holdings. 

Implications for Probate Practitioners 

For legal professionals and executors, this legislative change brings several key benefits: 

1. Greater clarity in estate administration

Executors can now confidently identify, value and distribute digital property as part of their statutory duties, reducing risk and uncertainty. 

2. A stronger basis for due diligence

Tracing and verifying digital holdings becomes more straightforward when these assets are formally classified as property, supporting risk management and compliance. 

3. Improved protection for beneficiaries

Clearer rules around ownership and transfer help safeguard beneficiaries’ rights, particularly where digital wealth forms a significant proportion of an estate. 

4. Enhanced potential for dispute resolution

Ambiguity around digital assets has, in the past, complicated contentious situations. The new legislation gives courts and practitioners a more solid foundation for addressing disputes. 

Why This Matters for Our Work at Finders International 

As digital wealth becomes increasingly common, the ability to identify and account for all a deceased person’s assets is crucial. At Finders International, our research frequently uncovers overlooked or unknown holdings – now more often than ever including online accounts and digital property.  

This legal recognition strengthens the framework within which we assist solicitors, public sector teams and executors in providing complete and accurate estate administration. Whether tracing heirs, verifying estate information or supporting professionals through complex cases, clearer legislation ultimately leads to better outcomes for all parties involved.