Digital assets now recognised as personal property
In December 2025, the Property (Digital Assets etc) Act 2025 received royal assent. This is a significant legal development as it gives statutory recognition to digital assets as a form of personal property. With digital wealth and online content becoming an increasingly important part of everyday life, this change brings greater clarity to individuals and businesses who own or transact with digital assets. In this blog, we explain what the new law means and how it could affect your estate planning.
The new law explained
The new Act confirms that digital assets can be recognised as personal property, even if they do not neatly fall into the two traditional categories of “things in possession” or “things in action”. In 2023, the Law Commission for England and Wales recommended this third category to address growing uncertainty surrounding the protection of digital assets.
What counts as a digital asset?
The new Act does not set out an exhaustive list of what constitutes a digital asset. Instead, the courts will develop their own case law over time, determining which assets fall within this third category of property as technology continues to evolve. This approach ensures the law remains adaptable and does not become outdated as new types of digital assets emerge.
Examples of digital assets that are likely to be protected under the new law include:
- Cryptocurrencies
- Non-fungible tokens (NFTs)
- Online investment accounts
- Digital wallets
- Domain names
- Websites
- Digital collections
- Monetised online content.
What does this mean for your estate planning?
Under this new law, digital assets can now be transferred or sold during a lifetime or left in a Will. Here at Attwaters, we therefore strongly recommend reviewing your Will in light of these changes, even if you do not think you are directly affected. You may not own crypto-assets, but you might have digital photos or social media accounts that have sentimental value to you and your family.
How can you prepare?
To protect digital assets effectively, you should take the following steps:
- Create a comprehensive digital asset inventory
- Store information securely
- Consider naming a digital executor
- Review your digital estate planning as technology changes.
It’s important to note that the Act does not overcome challenges such as missing passwords so without clear instructions, executors may be unable to locate or retrieve digital assets.
Other advantages of the new law
It is anticipated that this clearer property status will make disputes over digital assets easier to resolve, as they no longer fall into a legal grey area. It also reduces the risk of assets being missed during probate and provides greater protection where digital assets are lost, stolen or subject to fraud.
Update your Will today
The new Act is a major step forward, but it also highlights the importance of keeping your Will up to date. Our Wills, Trusts and Probate team can help you review your digital assets and update your Will accordingly.
Contact our Bereavement team
If you are dealing with the estate of a loved one which involves digital assets or you have been appointed as a digital executor, it is important that any digital assets are dealt with in accordance with the deceased’s Will and in the same way as any other asset within an estate.
Our Wills, Trusts and Probate team can advise on this, for an initial discussion with our knowledgeable experts, please contact us on wills@attwaters.co.uk or call 0330 221 8855.
