Whether we like it or not, our lives are increasingly lived online, something which the AI revolution will no doubt take even further. Solicitor Lucy Wilton outlines the new Digital Assets Act and the impact it will have on Estate Planning.

Priceless memories (… and your iCloud photo library)
We published a blog back in 2020 entitled ‘What will happen to your ‘digital life’ when you die?’, exploring issues around what happens to personal digital assets when we die such as photographs, music as well as other kinds of digital assets.  

And Crypto ( definitely not priceless)
In that blog we also touched on other financially significant digital assets such as investments and crypto.  Back then cryptocurrency was far less mainstream, but these days we come across it in Estates more frequently.

Implications of the new Property (Digital Assets etc.) Act 2025
Until recently, the law struggled to keep up with how to treat digital financial assets.  However, in December 2025, Parliament passed the Property (Digital Assets etc.) Act 2025, which is a short but important piece of legislation with significant implications for Estate Planning and Probate.

Why was the Act needed?
Over the past few years it became increasingly obvious that difficulties were being encountered by those handling the distribution of Estates which included digital assets.

Traditionally, English law has divided personal property into two categories:

• Things in possession These are tangible items you can physically hold, such as jewellery, paintings or furniture
• Things in action  Such as legal rights, debts, shares or contractual claims

Can an intangible asset be classified as ‘property’?
Cryptocurrencies, NFTs (Non-Fungible Tokens) and other digital tokens for example are not physical, but nor are they merely contractual rights. This led to legal uncertainty about whether they were actually “property” at all.

Although the courts had started to recognise that certain digital assets could amount to property on a case‑by‑case basis, there was no clear legal framework to specify this leading to a number of disputes over Estates containing them. The 2025 Act addressed that gap by confirming that an asset is not prevented from being property simply because it exists in digital or electronic form.

What does the Digital Assets Act actually do?
The Act is intentionally brief. It does not attempt to list every type of digital asset or impose rigid definitions. Instead, it makes one crucial clarification: digital assets can attract property rights even if they do not fall within the traditional categories of personal property.

Why does this matter for Wills and Estates?
The most important implication is certainty. If something is recognised as property, it can be gifted within a Will and therefore form part of your Estate on your death. It means it would also be subject to the rules of intestacy if there is no Will.

The Act strengthens the legal basis for treating qualifying digital assets in the same way as more familiar assets when someone dies. This is particularly relevant where an Estate includes assets such as cryptocurrency.

Access versus ownership – an ongoing issue
Although the Act clarifies the issue of how digital assets are dealt with legally, it doesn’tautomatically solve all practical issues. Ownership is only one part of the picture. Access, control and knowledge of the asset’s existence remain key challenges for Executors.

As we highlighted in our earlier blog, executors do not automatically have passwords, PINs or private keys. Many digital assets are effectively inaccessible without this information, regardless of their legal status.

What you can do to help your Executors deal with your Digital Assets
The Law Society continues to advise against sharing passwords during your lifetime, but you will make the administration of your Estate much easier for your Executors if you keep a clear and regularly updated record of your digital assets including:

• What digital assets you hold
• Where they are stored or accessed
• How your Executors can locate them
• What you want to happen to them

The Digital Assets Act makes it clearer that these assets can form part of your Estate, but forward planning is still essential to ensure they can actually be dealt with after your death.

Reviewing your Will in light of the Act
If your Will was drafted some years ago, it may make no express reference to digital assets at all. Even where digital assets are mentioned, changes in technology and law mean the wording may no longer be adequate. You may also want to consider whether the Executors you have chosen would be able to deal with your digital assets.

Get in touch
The Property (Digital Assets etc.) Act 2025 is an important step towards aligning the law with modern life and reinforces the message that digital assets should be treated as a routine – but carefully considered – part of Estate Planning.

If you would like advice about updating your Will or ensuring that your digital and non‑digital assets are dealt with as you intend, our experienced and friendly team would be very happy to help. You can contact us on 01872 241408 or email info@penderlaw.co.uk