India’s crypto adoption continues to surge, with millions holding virtual digital assets (VDAs) ranging from Bitcoin and Ethereum to NFTs and tokenized investments. Yet when it comes to passing on this wealth, a glaring gap remains in the country’s inheritance laws. Digital assets locked behind passwords, private keys, and platform terms of service often leave families struggling to access what is rightfully theirs, even after navigating lengthy probate processes.
A recent report by Business Standard published today has brought this issue into sharp focus. As personal wealth increasingly shifts to digital forms – cryptocurrencies, NFTs, monetised YouTube channels, online trading accounts and cloud storage – traditional estate planning tools are proving inadequate. Lawyers and experts warn that without proactive measures, a significant portion of this wealth risks becoming inaccessible or lost forever upon the owner’s demise.
Insights drawn from a detailed report by iWills.in published on January 11, 2026, titled How Cryptocurrency and NFTs Are Inherited in India: Legal Framework, Challenges, and Will Planning Essentials, further underscore the urgency. Together with the latest Business Standard coverage, these reports highlight how digital wealth – locked behind passwords, private keys, and platform-controlled systems – remains a major blind spot for most Indian families.
With millions of Indians holding cryptocurrencies, NFTs, monetised content on YouTube and Instagram, online trading accounts, and cloud-based investments, the absence of clear succession mechanisms risks turning valuable assets into inaccessible digital ghosts upon the owner’s death.
Ownership on paper, but access denied in practice
Traditional Indian inheritance laws were never designed for this new reality. Unlike fixed deposits or demat shares that offer nomination facilities, digital assets depend entirely on cryptographic credentials and foreign platform policies.
“A legal right may exist on paper, but families often have no practical ability to enforce it,” said Aayushi Singh, senior partner at Legum Solis, as quoted in recent expert discussions, including the Business Standard report of May 28, 2026.
Kunal Sharma, managing partner at TARAksh Lawyers and Consultants, reinforced this point: “Legal succession alone may not ensure actual transfer or recovery of the asset.”
Tushar Kumar, advocate at the Supreme Court of India, described digital assets as existing in “encrypted ecosystems” governed by foreign platforms, often with minimal paper trail. Shweta Tungare, co-founder of LawTarazoo, noted that families inherit “a legal right they may have no practical ability to enforce.”
Hardeep Sachdeva, senior partner at AZB & Partners, warned of prolonged cross-border disputes between Indian succession rules and overseas contractual frameworks, which can lead to permanent loss of access.
Madras High Court ruling in October 2025 provides limited relief
India still lacks a comprehensive statutory framework for digital succession. The Indian Succession Act, 1925, and the Hindu Succession Act, 1956, do not address virtual digital assets (VDAs), crypto inheritance, or digital executors.
A key development came in October 2025 when the Madras High Court, in Rhutikumari v. Zanmai Labs, delivered on October 25, 2025, recognised cryptocurrency as property capable of ownership, beneficial enjoyment, trust, and inheritance.
The ruling also affirmed Indian courts’ jurisdiction over offshore platforms in appropriate cases. The iWills report of January 11, 2026, highlights this judgment as an important affirmation that cryptocurrencies qualify as inheritable property.
This judgment has helped close some doctrinal gaps, but operational challenges remain significant, especially with decentralised wallets, foreign exchanges, and privacy concerns amplified by the Puttaswamy judgment.
When there is no will: Heightened risks
In intestate cases, heirs must navigate succession certificates or probate proceedings – often lengthy and costly. Even with court orders, platforms may refuse access citing privacy obligations or non-transferable licence terms.
The Supreme Court’s ruling in Shakti Yezdani v. Jayanand Jayant Salgaonkar further clarified that nomination does not override legal succession.
India’s booming crypto user base – one of the largest globally – makes these issues particularly urgent. Without proper planning, families could face years of litigation or irreversible loss, similar to high-profile international cases where inaccessible keys led to millions vanishing.
Actionable steps recommended by experts
Legal professionals advise crypto and NFT holders to act now, as emphasised in the iWills report of 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.
“Modern inheritance disputes may not arise from uncertainty over who the lawful heir is, but from whether the estate itself can be located, authenticated and lawfully accessed,” Kumar observed.
The way forward
As India pushes digital public infrastructure and blockchain adoption, experts call for legislative updates – possibly amendments to succession laws or a dedicated digital assets inheritance framework covering valuation, transfer protocols, and conflict resolution with foreign terms of service.
Until statutory clarity arrives, proactive estate planning remains the only reliable safeguard. For India’s young, tech-native investors, integrating digital legacy planning into wills is no longer optional – it is essential to protect hard-earned wealth for the next generation.
The Crypto Times will keep monitoring this fast-evolving space at the intersection of technology, law, and personal finance. High-net-worth individuals and retail crypto participants alike should consult estate planning specialists well-versed in virtual digital assets for customised solutions.
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