Digital Negligence: Removing Executors in the Crypto Era

With the Property (Digital Assets etc) Act 2025 now in force, “digital incompetence” is now a valid legal ground for removing an executor. If an executor loses a private key, ignores a crypto market crash, or fails to secure a “seed phrase,” they are as liable as if they had burned down the family home. This 1,000-word guide explores the new standard of care for digital assets and how to use Section 50 of the Administration of Justice Act to replace a tech-illiterate executor.

A New Legal Status for Data

The Property (Digital Assets etc) Act 2025 was the most significant change to property law in a century. By confirming that “data objects” (Crypto, NFTs, Carbon Credits) are personal property, the Act ended the era where executors could claim that digital assets “didn’t count.”

Under the Trustee Act 2000, an executor must exercise “such care and skill as is reasonable.” In 2025, it is no longer “reasonable” for an executor to say, “I don’t understand Bitcoin.” If the estate contains digital assets, the executor has a legal duty to either possess the technical skill to manage them or hire a professional “Digital Custodian” to do so.

The Definition of “Digital Waste”

We are seeing a surge in devastavit (waste) claims based on two scenarios:

1. The “HODL” Negligence: An executor holds onto volatile Alt-coins during a 50% market drop instead of “liquidating to cash” to protect the beneficiaries.
2. The “Locked Wallet” Disaster: An executor finds a hardware wallet (like a Ledger) but fails to find the “Seed Phrase” or enters the wrong PIN three times, permanently wiping the assets.

The Section 50 “Nuclear Option”

If an executor is failing to secure digital assets, you don’t have to wait for the damage to be done. You can apply to the High Court under Section 50 of the Administration of Justice Act 1985 to have them replaced.

• The Test: You must show that the “proper administration” of the estate is at risk.
• The Evidence: In 2025, showing that an executor has no “Digital Asset Management Plan” is often enough to prove they are unfit for a modern estate.

Protecting the Digital Legacy

We provide the Authority of the 2025 Act, Education on seed phrase security, Empowerment to replace incompetent fiduciaries, Empathy for the loss of a digital fortune, and extreme Urgency, because once a private key is lost, the law cannot bring it back.

Read our guide to learn more on digital assets: The Digital Assets: What Happens to Your Online Life After You Die?

Let’s Do This Together

Contesting a will could become an overwhelming experience if not accompanied by expert guidance and support. Our mission is to provide you with all the needed information, support, and authority to get through this journey, with only one goal in mind: Fairness.

To our team, this process is not about winning; it’s about claiming what was yours from the beginning.

Get your free, no-obligation case assessment. Call 08002980029 or visit contestawilltoday.com

FAQs

1. Can an executor be sued for a “hacked” wallet?

Yes, if the hack was due to their negligence (e.g., storing a seed phrase in an unencrypted email). If they took “reasonable” security measures and a sophisticated hack occurred anyway, they may be protected by the “statutory relief” in the Trustee Act.

2. Does the “Digital Assets Act” cover social media accounts?

It covers assets with “economic value.” While a standard Facebook account might not be “property,” a YouTube channel with ad revenue or a monetized Instagram account is now firmly recognized as a “data object” that the executor must manage and value.

3. Who pays the costs of removing a tech-illiterate executor?

If the court finds the executor acted unreasonably by refusing to step down when they clearly lacked the skills to manage the digital estate, the court can order the executor to pay your legal costs personally (an Inter Partes costs order).