A high-powered group of legal experts, chaired by a senior member of the judiciary, Sir Geoffrey Voss, have concluded in their recent legal report that assets with blockchain-type encryption have validity and are properly classed as “property” under English law.
This confirms the position set out by HMRC in their policy paper Policy paper “Cryptoassets: tax for individuals” in which they state that “Cryptoassets will be property for the purpose of inheritance tax”.
It is vital to ensure that the people who will administering your estate when you die (your executors if you have made a will) know about any cryptocurrency you own (such as Bitcoin). Without the relevant digital wallet information, private keys or pass phrases, the assets die with you, and your estate would lose out on securing those assets for the benefit of your beneficiaries.
Traditionally, a deceased would leave behind a paper trail in relation to their assets (bank statements, credit cards etc). However, in today’s cloud-based world, individuals need to be more savvy about leaving a record of their assets (and how to access them) to those people that will be dealing with their estate.
Cryptoassets, including but not restricted to, virtual currencies, can be treated in principle as property...