Digital wealth is a blind spot in Indian estate planning. A growing share of personal wealth exists behind passwords, private keys and platform-controlled access systems of cryptocurrencies, online trading accounts, monetised YouTube channels and digital wallets,
Lawyers say that when the owner of such digital assets dies without a clear succession plan, families struggle not only over inheritance rights, but also whether the assets can even be located or accessed.
Experts warn that India’s inheritance framework, drafted decades before digital assets emerged, is struggling to keep pace with modern forms of wealth. Unlike bank deposits, shares or property, many digital assets do not come with standard nomination mechanisms, physical paperwork or clear transmission procedures. In several cases, heirs may legally inherit the asset but still remain locked out because they lack passwords, recovery phrases or platform approvals.
“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. She noted that digital assets depend on access credentials, private keys and platform-specific terms of service rather than conventional ownership documents.
Why digital assets are creating inheritance problems
Lawyers say digital succession disputes are fundamentally different from traditional inheritance because ownership and access are intertwined.
Cryptocurrency wallets, NFTs, online investment accounts and Cloud-based assets often operate through encrypted systems where access depends entirely on passwords, seed phrases or private keys. If those credentials are lost or known only to the deceased owner, the assets may become permanently inaccessible.
“Legal succession alone may not ensure actual transfer or recovery of the asset,” said Kunal Sharma, managing partner at TARAksh Lawyers and Consultants.
Tushar Kumar, advocate at the Supreme Court of India, said digital assets frequently exist within “encrypted ecosystems” governed by foreign platform policies and private technological protocols, leaving behind little or no paper trail. As a result, succession increasingly involves questions of digital recoverability rather than merely identifying the rightful heir.
The issue becomes even more complicated because many technology platforms treat accounts as personal and non-transferable licences instead of inheritable property. Social media platforms, Cloud storage services and crypto exchanges may impose their own privacy and contractual restrictions even after a user’s death.
Shweta Tungare, cofounder of LawTarazoo, said families often inherit “a legal right they may have no practical ability to enforce”.
Legal vacuum around digital inheritance
India does not have a dedicated legal framework governing digital succession.
Existing laws such as the Indian Succession Act, 1925 and the Hindu Succession Act, 1956 were drafted with conventional movable and immovable property in mind. They do not expressly define digital property, crypto inheritance, fiduciary access rights or digital executors.
According to Singh, the legal position shifted significantly after the Madras High Court’s October 2025 ruling in Rhutikumari v. Zanmai Labs, where cryptocurrency was recognised as property capable of ownership, trust and inheritance. The judgement helped fill a doctrinal gap for virtual digital assets, though experts say broader statutory uncertainty still remains.
Tungare said the ruling was particularly important because it confirmed that Indian courts could exercise jurisdiction even where crypto platforms are based offshore.
However, lawyers caution that the ruling still does not solve operational problems involving foreign exchanges, decentralised blockchain systems or overseas platform policies.
Hardeep Sachdeva, senior partner at AZB & Partners, said cross-border digital assets frequently create conflicts between Indian succession law and foreign contractual frameworks, potentially resulting in prolonged disputes and even permanent loss of access.
What happens when there is no will?
The absence of a will or access instructions is where most disputes emerge.
Families may first have to establish legal entitlement through succession certificates, probate proceedings or letters of administration. Even after securing those documents, they may still struggle to convince platforms or exchanges to hand over access.
Platforms often demand death certificates, probate orders or notarised legal documents before even considering a request. In some cases, they may still refuse access due to privacy obligations or internal policies.
Tungare said the problem has intensified after the Supreme Court’s privacy ruling in Justice K S Puttaswamy (retd.) v. Union of India, which recognised informational privacy as a fundamental right. Platforms increasingly cite privacy protections while denying account access to heirs.
Experts also highlighted confusion between nominees and legal heirs. Singh pointed to the Supreme Court’s ruling in Shakti Yezdani v. Jayanand Jayant Salgaonkar, which clarified that nomination does not automatically confer beneficial ownership. The asset continues to devolve according to succession law.
What individuals should do
Experts recommend that individuals:
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Specifically list digital assets in their will instead of using generic references -
Maintain a secure inventory of wallets, exchanges, online accounts and digital investments -
Avoid writing passwords or private keys directly into the will, since probate records may become public -
Use encrypted password managers, sealed memorandums or custodial arrangements for sensitive credentials -
Appoint an executor with explicit authority to administer digital assets -
Use platform legacy tools such as Google Inactive Account Manager, Apple Digital Legacy and Meta Legacy Contact -
Regularly review nominee details and succession instructions
“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 said.