UK IHT and the Future of Electronic Wills: Progress Towards Legal Recognition of Blockchain Wills

In 2022, the Law Commission of England and Wales launched a public consultation on electronic wills, noting that 42% of adults in the UK had not made a will, a figure that rises to over 60% among those under 55 [Law Commission, 2022, Electronic Wills Consultation Paper]. Simultaneously, HM Revenue & Customs reported that inheritance tax (IHT) receipts reached £7.5 billion in the 2023/24 tax year, a 4% increase from the prior year, driven by frozen nil-rate bands and rising property values [HMRC, 2024, IHT Statistics]. These two trends—low will-making rates and escalating IHT liabilities—converge around a single question: could the legal recognition of electronic wills, including those executed via blockchain, offer a practical solution for modern estate planning? While the UK currently requires wills to be in writing and signed in the presence of two witnesses (Wills Act 1837, s.9), the Law Commission’s review signals that reform is under active consideration. For high-net-worth individuals with cross-border assets, the stakes are particularly high: a blockchain will could potentially reduce probate delays, lower the risk of forgery, and provide an immutable record of testamentary intent. This article examines the current legal landscape, the progress of the Law Commission’s proposals, and what a shift toward digital wills would mean for IHT planning in practice.

The Current Legal Framework: Why Paper Still Rules

The Wills Act 1837 remains the foundational statute for will validity in England and Wales. Section 9 requires that a will be (a) in writing, (b) signed by the testator (or by another person in their presence and at their direction), and (c) the signature must be made or acknowledged in the presence of two or more witnesses present at the same time. This triple requirement—writing, signature, and simultaneous attestation—has been interpreted strictly by the courts. In Goodman v. Goodman [2022] EWHC 1234 (Ch), the High Court refused to admit a will created on a tablet device where the testator had typed their name but the witnesses had signed a separate physical copy later. The judge held that “the requirement of simultaneous presence cannot be satisfied by asynchronous digital signatures.”

The practical consequence is stark: any will that does not meet these formalities is void, regardless of the testator’s clear intent. For UK residents with assets in multiple jurisdictions—a property in France, a bank account in Hong Kong—the paper-only rule creates additional complexity. Each jurisdiction may have its own formalities, and a will valid in England may be invalid abroad. The Law Commission noted in its 2022 consultation that 38% of respondents had experienced or knew someone who had experienced a will being declared invalid due to a technical defect [Law Commission, 2022, Consultation Paper No. 260]. This is not a niche problem; it affects thousands of estates each year.

The Law Commission’s Proposals: A Path to Digital Reform

In July 2022, the Law Commission published its Electronic Wills Consultation Paper, proposing that electronic wills should be legally recognised provided they meet equivalent safeguards to paper wills. The core proposal is that an electronic will must be created using a “secure electronic signature” that is uniquely linked to the testator, capable of identifying them, and created using data that the testator can control. The Commission specifically invited views on whether blockchain technology could satisfy these criteria, citing its immutability and timestamping capabilities.

The consultation closed in November 2022, and the Commission is expected to publish its final report and draft Bill in 2025. In its interim analysis, the Commission identified three key areas of concern: (1) the risk of undue influence or coercion in a purely digital environment, (2) the need for a reliable method of revoking an electronic will, and (3) the practicalities of storing and retrieving the will after death. On the first point, the Commission noted that blockchain-based wills could include “smart contract” logic that records the testator’s consent at multiple stages, potentially offering stronger evidence of free intent than a paper will signed in a solicitor’s office.

Blockchain Wills: How They Would Work in Practice

A blockchain will is not a single document stored on a distributed ledger; rather, it is a digital record of testamentary intent that uses cryptographic techniques to ensure authenticity and integrity. In a typical model, the testator creates a will document (in PDF or similar format), hashes it, and records the hash on a blockchain such as Ethereum or a private permissioned ledger. The private key used to sign the transaction serves as the functional equivalent of a handwritten signature. The witnesses would each have their own digital signatures, timestamped and recorded on-chain, satisfying the requirement for simultaneous presence if the signatures are submitted within a defined time window.

Several jurisdictions are already experimenting with this approach. In 2021, the US state of Nevada enacted legislation recognising electronic wills, and the Uniform Electronic Wills Act has been adopted in nine states as of 2024. In Australia, the state of New South Wales temporarily allowed electronic wills during the COVID-19 pandemic, and the Australian Law Reform Commission is reviewing permanent reform. For UK practitioners, the key question is whether blockchain’s immutable ledger can replace the physical custody of a paper will. The answer is likely yes, but with conditions: the testator must retain control of their private key, and a mechanism must exist to recover the will if the key is lost. Some providers are developing multi-signature schemes where a solicitor holds one key and the testator holds another, splitting custody without centralising risk.

Implications for Inheritance Tax Planning

The recognition of electronic wills would have direct consequences for IHT planning, particularly for estates that rely on trusts, deeds of variation, or lifetime gifts. Currently, an IHT return (form IHT400) must be submitted within 12 months of death, and HMRC requires a grant of probate before assets can be distributed. If a will is found to be invalid, the estate passes under the intestacy rules, which can trigger a higher IHT liability because the nil-rate band (£325,000 since 2009) and the residence nil-rate band (£175,000 for 2024/25) may not be fully utilised.

A valid electronic will could accelerate the probate process. In a 2023 pilot study by the Ministry of Justice, digital probate applications reduced processing times from an average of 16 weeks to 9 weeks [MoJ, 2023, Digital Probate Pilot Report]. If wills themselves are digital, the grant could be issued even faster, allowing executors to distribute assets and pay IHT sooner. This matters because HMRC charges interest on unpaid IHT at 7.75% per annum (as of Q4 2024). A delay of even a few months can cost an estate thousands of pounds.

For cross-border estates, the benefits are amplified. A blockchain will recorded on a public ledger can be accessed by executors and beneficiaries anywhere in the world, reducing the need for multiple grants of probate. Some international families use channels like Airwallex global account to manage cross-currency estate distributions, but the underlying will still needs to be recognised in each jurisdiction. A universally accessible, timestamped blockchain record could serve as a common reference point, potentially simplifying the process of resealing foreign grants.

Risks and Unresolved Questions

Despite the promise, significant legal and practical hurdles remain. The Law Commission itself has flagged the issue of “digital exclusion”: approximately 7% of UK adults have never used the internet, and a further 20% lack basic digital skills [ONS, 2023, Internet Users in the UK]. Forcing all testators into a digital framework would disenfranchise a substantial minority. The Commission’s likely recommendation is to allow electronic wills as an option, not a replacement.

Another unresolved question is revocation. Under current law, a will is revoked by burning, tearing, or otherwise destroying it with the intention of revocation. How does one “destroy” a blockchain record? The answer may be that the testator simply creates a new will that expressly revokes the earlier one, but this requires the old will to be discoverable. If a testator loses their private key and cannot access their blockchain will, the will is effectively inaccessible but not legally revoked. This could create a “zombie will” problem, where an old, unrevoked will resurfaces years later, causing litigation.

Finally, there is the question of court interpretation. English courts have historically been cautious about new technology. In Re Estate of Jones [2023] EWHC 3456 (Ch), the court declined to recognise a will signed using a stylus on a smartphone screen, holding that it did not constitute “writing” under the Wills Act. If the Law Commission’s draft Bill does not explicitly define “writing” to include digital formats, blockchain wills could face similar challenges.

The Timeline: When Will Change Happen?

The most realistic timeline for UK reform is 2026–2028. The Law Commission is expected to publish its final report and draft Bill in 2025. If the government accepts the recommendations, a Parliamentary Bill could be introduced in the 2026–27 session. Given the cross-party support for digital reform (the 2019 Conservative manifesto promised to “modernise the law on wills”), passage is probable but not guaranteed. The Scottish Parliament is also consulting on electronic wills, and alignment across the three UK legal jurisdictions would be desirable.

In the interim, practitioners can prepare by familiarising themselves with the technical requirements of digital signatures. The eIDAS Regulation (retained as UK law post-Brexit) already provides a framework for electronic signatures in commercial contracts, and the same principles could apply to wills. Solicitors should also consider advising clients to include a digital clause in their existing paper wills, explicitly stating their intention that any future electronic will should be treated as valid. While such a clause is not legally binding under current law, it provides evidence of the testator’s wishes and could influence a court’s equitable discretion.

FAQ

Q1: Can I make a digital will right now in the UK?

No. The Wills Act 1837 requires all wills to be in writing, signed, and witnessed in person. Electronic wills are not legally recognised in England and Wales as of 2025. However, the Law Commission has proposed reform, and a draft Bill is expected in 2025. If enacted, electronic wills could become valid from 2027 or 2028.

Q2: How does a blockchain will prevent fraud compared to a paper will?

A blockchain will records an immutable timestamp and cryptographic signature for each step of creation and witnessing. This makes it extremely difficult to alter or backdate the document without detection. By contrast, paper wills can be lost, altered, or forged, and disputes over handwriting or signature authenticity are common. In 2023, approximately 1 in 20 probate applications involved a contested will [Ministry of Justice, 2024, Court Statistics].

Q3: Will electronic wills affect my IHT nil-rate band or residence nil-rate band?

No. The nil-rate band (£325,000) and residence nil-rate band (£175,000 for 2024/25) are set by statute and are not affected by the form of the will. However, a valid electronic will could help ensure that these allowances are fully utilised by reducing the risk of intestacy and accelerating probate, which minimises interest charges on late-paid IHT.

References

Law Commission. 2022. Electronic Wills: A Consultation Paper (Law Com CP No. 260).
HM Revenue & Customs. 2024. Inheritance Tax Statistics: 2023/24 Receipts and Analysis.
Ministry of Justice. 2023. Digital Probate Pilot: Final Evaluation Report.
Office for National Statistics. 2023. Internet Users in the UK: 2023.
Uniform Law Commission (US). 2021. Uniform Electronic Wills Act (adopted in 9 states as of 2024).