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What counts as property in the digital age? A new Bill could reshape how digital assets are treated after death

The way we define personal property in law has remained largely unchanged since the 19th century.

Traditionally, property falls into two categories:

Things in possession – physical, tangible assets like jewellery, furniture or cars
Things in action – assets that can only be claimed through legal action, such as debts or shares

However, times have moved on, and with it, the addition of assets that don’t fit easily into either category.

Think crypto-wallets, digital files, domain names, or even in-game assets.

This can pose a real problem for people planning their estates.

However, a new Bill, now moving to its second reading in the House of Commons, may begin to address that.

A legal gap in digital assets

The Property (Digital Assets) etc Bill, which originated in the House of Lords in September 2024, proposes the formal recognition of a third category of personal property.

This follows the Law Commission’s detailed recommendations, which acknowledged that many digital assets may attract property rights, even if they do not meet the historical definitions.

This third category would give legal form to the idea that digital assets can have value, can be owned, and can be transferred, despite not being physical or enforceable by action.

It is designed not to define every possible type of asset now, but to create the legal space for future development through common law.

Importantly, the Bill itself does not list specific types of digital assets, such as cryptocurrency.

Instead, it uses a broad term (digital assets), which may include:

Email accounts
Online storage (e.g. cloud drives)
Digital files and records
Crypto-tokens and NFTs
Domain names and digital licences
In-game digital items
Digital carbon credits

The current problem for executors and estate planners

At present, many Wills either fail to account for digital assets or include only vague instructions.

Executors may find themselves unable to access valuable accounts or unsure whether they can legally distribute them. In some cases, assets with real financial or personal value may be lost entirely.

By giving digital assets clearer legal status as property, this Bill could eventually provide the legal footing needed to:

Clarify how digital assets can be passed on
Make it easier for executors to access and distribute them
Encourage more specific planning by testators and advisers

What should you do now?

While this Bill has not yet passed into law, it highlights an area of growing importance.

If you have digital assets (financial, creative, or otherwise), it is worth reviewing your Will to ensure they are acknowledged and covered.

This might include making a list of your digital accounts, specifying who should have access, and ensuring your executors understand your wishes.

We will continue to follow this Bill’s progress, but even now, digital assets deserve a place in estate planning conversations.

If you would like any advice or support with your Will and estate planning, please contact our experienced team of solicitors today.

Linsey Graham

Associate Probate Executive – Wills, Probate & Older Client Services

I have worked for Mander Hadley for 17 years and specialise in Wills, trusts, tax, probate and the administration of estates.