The Property (Digital Assets etc) Act 2025 is now in force and represents a significant milestone in the evolution of English property law. Although concise in form, the Act delivers something private client professionals have long needed: clarity.

For the first time, English law confirms that certain digital assets can constitute personal property, even where they do not fit neatly within the traditional categories of property. For estate planners, private client solicitors and will drafters, this marks a decisive shift from uncertainty to principle.

Why this legislation matters

Historically, English law has recognised two forms of personal property: physical items capable of possession, and legal rights enforceable by action. Digital assets have long sat uncomfortably between these categories. Cryptocurrencies, NFTs and tokenised assets can be bought, sold and controlled, yet they have no physical form and are not always rights against an identifiable counterparty.

In practice, the courts have already treated some digital assets as property when granting injunctions or freezing stolen crypto. However, without statutory confirmation, this approach lacked consistency and left professionals exposed to risk. Assets could be overlooked in estate planning, mishandled by fiduciaries, or become difficult to recover on death.

The Act addresses this gap by confirming that property is not confined to physical objects or contractual rights. It allows the law to recognise a distinct category of digital assets where appropriate, without attempting to define that category exhaustively. This flexibility is deliberate and important. It ensures that the law can evolve alongside technology, rather than becoming obsolete as new forms of digital value emerge.

Perspectives from the profession

The Act has been widely welcomed across the private client profession. The Law Society has highlighted the increased legal certainty it brings, alongside improved consumer protection and clearer remedies in cases involving theft, fraud or hacking. STEP has emphasised that while the legislation confirms that assets such as crypto-tokens and NFTs can constitute property rights, the courts will continue to shape how those principles operate in practice.

Legal commentators have also been clear on what the Act does not do. It does not automatically classify every digital asset as property. Instead, it establishes a framework within which property status can be recognised and developed through case law. That distinction is critical for practitioners managing expectations and risk.

What types of digital assets are affected?

The Act focuses on legal principle rather than producing a definitive list. In line with the Law Commission’s work, it reflects the concept of digital assets as electronic data objects that can be controlled, transferred and owned.

In practical terms, this is likely to include cryptocurrencies, NFTs, tokenised real-world assets, and certain in-game or platform-based tokens where they carry market value. However, many online accounts remain governed by licence rather than ownership. Social media profiles, email accounts and subscription libraries are typically non-transferable under platform terms, and the Act does not override those contractual arrangements.

This distinction reinforces the need for careful due diligence. Recognising an asset as property in principle does not remove the requirement to review terms of service when planning for succession.

Implications for Wills and estate planning

From an estate planning perspective, the Act removes a longstanding ambiguity. Digital assets can now be treated more confidently as part of a client’s estate. They may be gifted specifically, included within residue, held in trust and considered as part of wider tax planning. While HMRC has already treated many digital assets as taxable, the legislation reinforces their status within the broader property framework.

For executors and personal representatives, the implications are equally significant. Proprietary remedies are more clearly available where digital assets have been misappropriated. Traceability and recovery are strengthened, and failures to disclose digital holdings during probate carry greater weight in dispute contexts.

Trustees are also affected. Where digital assets are held within a trust, trustees must manage them with the same care as any other form of property. This includes understanding volatility, securing private keys, recording decisions appropriately and reviewing risk. The Act does not regulate custody or valuation, but it reinforces that neglecting digital assets is no longer defensible.

Practical considerations for professionals

The legislation signals a clear shift in best practice. Digital assets should now be treated as a standard consideration when taking instructions, not a niche or optional topic.

Professionals should ensure they are asking targeted questions about digital holdings and documenting where and how those assets are stored. Wills may need to address whether assets are to be gifted in specie, sold and distributed, or managed over time. Executor powers should be reviewed to ensure they expressly cover holding, securing and realising digital assets where appropriate. Technology can also play a role in supporting this shift in best practice. Platforms such as Arken already enable practitioners to record and draft for the gifting of digital assets within wills, helping ensure that these assets are properly identified, described and incorporated into testamentary intentions. As digital wealth becomes more prevalent, having drafting tools that can accommodate non-traditional assets will be increasingly important in delivering robust, future-proof estate planning.

A foundation, not a conclusion

The Property (Digital Assets etc) Act 2025 does not answer every question about digital ownership, enforcement or succession. Instead, it establishes a vital foundation. Digital assets are property. The detail will continue to develop through judicial decisions, professional standards and market practice.

For estate planners, private client solicitors and will drafters, the message is clear. Digital assets are no longer niche or exceptional. They form part of modern wealth, and they require the same level of care, clarity and foresight as any other form of property. Our role is to ensure they are recognised, planned for and protected accordingly.