More and more people in India are investing in cryptocurrencies like Bitcoin and Ethereum, as well as NFTs and other digital investments. However, India’s current inheritance laws don’t address how to pass these digital assets on to heirs. This creates problems for families, as accessing these assets – which are often protected by passwords and complex online rules – can be difficult, even after going through the legal process of settling an estate.
A new report from Business Standard highlights a growing problem: traditional methods of estate planning aren’t equipped to handle the rise of digital assets like cryptocurrencies, NFTs, online accounts, and cloud storage. Experts caution that without careful planning, a substantial amount of this digital wealth could be lost or become unreachable when someone passes away.
A recent report from iWills.in, published on January 11, 2026, and titled ‘How Cryptocurrency and NFTs Are Inherited in India: Legal Framework, Challenges, and Will Planning Essentials,’ confirms the growing need to address digital inheritance. Combined with recent coverage in Business Standard, these sources show that many Indian families are unprepared for inheriting digital assets like cryptocurrency and NFTs, which are often secured by passwords and controlled by online platforms.
Millions of people in India now own digital assets like cryptocurrencies, NFTs, online investments, and earnings from platforms like YouTube and Instagram. However, without a clear plan for what happens to these assets after someone dies, they could become permanently lost and inaccessible.
Ownership on paper, but access denied in practice
Old Indian laws about inheritance don’t cover modern digital assets well. While things like bank accounts and stocks let you name who gets them after you’re gone, digital assets rely on passwords and the rules of companies often based outside of India.
Families may have legal rights, but often can’t actually use them in practice, according to Aayushi Singh, a senior partner at Legum Solis. This point was raised in recent discussions, including a report in the Business Standard on May 28, 2026.
Kunal Sharma, a managing partner at TARAksh Lawyers and Consultants, explained that simply having legal documents in place doesn’t guarantee you’ll actually be able to transfer or get back your assets.
Tushar Kumar, a lawyer at India’s Supreme Court, explained that digital assets live within secure, online systems controlled by companies often located outside of India, and usually leave very little in the way of traditional records. Shweta Tungare, co-founder of LawTarazoo, added that when families inherit these assets, they often gain a legal claim without having a realistic way to actually access or control them.
Hardeep Sachdeva, a senior lawyer at AZB & Partners, cautioned that disagreements between Indian inheritance laws and contracts made in other countries could drag on for a long time, potentially resulting in irreversible loss of assets or rights.
Madras High Court ruling in October 2025 provides limited relief
Currently, India doesn’t have clear legal rules for what happens to your digital assets after you pass away. Existing laws, like the Indian Succession Act of 1925 and the Hindu Succession Act of 1956, don’t cover things like cryptocurrency, online accounts, or how to appoint someone to manage them after your death.
A significant ruling came from the Madras High Court in October 2025. In the case of Rhutikumari v. Zanmai Labs, the court recognized cryptocurrency as a type of property that can be owned, used, held in trust, and passed on to heirs.
The court’s decision also confirmed that Indian courts can handle legal cases involving offshore platforms when necessary. A report from iWills, dated January 11, 2026, points out that this ruling is significant because it recognizes cryptocurrency as property that can be passed on to heirs.
This ruling clarifies some legal uncertainties, but practical issues still exist, particularly when dealing with self-custody wallets, international exchanges, and the increased emphasis on privacy established in the Puttaswamy case.
When there is no will: Heightened risks
When someone dies without a will, their heirs often face complicated and expensive legal processes to access their assets, like applying for succession certificates or going through probate. Even after getting legal authorization, digital platforms sometimes deny access due to privacy concerns or rules preventing account transfers.
The Supreme Court case of Shakti Yezdani v. Jayanand Jayant Salgaonkar confirmed that a nomination doesn’t change who legally inherits property.
With a rapidly growing number of crypto users – among the biggest in the world – India needs to address these challenges quickly. Without careful preparation, families risk long and costly legal battles or permanently losing their funds, much like what’s happened in other countries when people lost access to their crypto keys and millions of dollars disappeared.
Actionable steps recommended by experts
Lawyers are urging people who own cryptocurrencies and NFTs to take action immediately, according to a report from iWills published on January 11, 2026.
- Explicitly list all digital assets in the will with clear descriptions of wallets, exchange accounts, NFT collections, and monetised platforms – avoid vague generic references.
- Maintain a detailed, regularly updated, secure inventory of holdings.
- Never include full passwords, seed phrases, or private keys directly in the will, as probate records may become public.
- Use encrypted password managers, sealed envelopes, or trusted digital custodians for credentials.
- Appoint a technically competent executor with specific powers to handle digital assets, including interacting with platforms.
- Utilise built-in legacy features: Google Inactive Account Manager, Apple Digital Legacy, and Meta Legacy Contact.
- Periodically review nominees on exchanges and ensure they align with the overall will.
Kumar noted that today’s inheritance conflicts are often less about *who* should inherit and more about the practical difficulties of finding, proving the validity of, and legally gaining access to the assets that *are* being inherited.
The way forward
With India increasingly using digital systems and blockchain technology, legal experts suggest updating laws related to inheritance. This could involve changing existing succession laws or creating a new legal framework specifically for digital assets. This framework would need to address how to value these assets, how to transfer them to heirs, and how to resolve disputes, especially when dealing with international companies and their terms of service.
Until laws become clearer, careful estate planning is the best way to protect your assets. For young, digitally savvy investors in India, including plans for your online accounts and digital assets in your will isn’t just a good idea – it’s now crucial to ensure your wealth passes on to the next generation.
The Crypto Times will continue to follow the rapidly changing world where technology, law, and personal finance meet. Both wealthy investors and everyday crypto users should speak with estate planning experts who understand digital assets to get advice tailored to their specific needs.
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2026-05-28 15:49