Property Act 2025 set to alter the definition of ‘property’ to include digital assets

Perhaps one of the shortest Acts of Parliament, the Property (Digital Assets etc) Act 2025 is set to significantly broaden the legal definition of “personal property”.

This Act was introduced to confirm that digital and electronic “things” can constitute property, even where they are not physical or do not fall within traditional categories such as choses in possession or choses in action (e.g. debts). Prior to this Act, the legal status of digitally stored media, access rights, cryptocurrencies and NFTs was uncertain and, in many cases, excluded from the traditional definition of property. This had a significant knock-on effect on Wills, as executors could face legal and practical barriers when attempting to access or deal with a deceased’s digital assets.

Uncertainty as to whether such assets constituted “property” meant that they did not always fall within the scope of standard Will wording, and digital service providers were often reluctant to grant access without clear legal authority.

Now that this Act has passed, digital assets are capable of forming part of a person’s estate in the same way as more traditional assets, meaning that a large number of estates that would otherwise run into serious issues can now be administered more straightforwardly under the ordinary wording of Wills.

While the Act improves the position, it is still advisable for testators to expressly refer to digital assets in their Wills, and to maintain clear records of access information such as passwords and access keys to allow executors to realise their digital assets.