Digital wealth represents a significant blind spot in Indian estate planning, as reported by Business Standard. A growing share of personal wealth now exists behind passwords, private keys, and platform-controlled access systems of cryptocurrencies, online trading accounts, monetised YouTube channels, and digital wallets. When owners of such digital assets die without clear succession plans, families struggle not only over inheritance rights but also whether assets can be located or accessed. Unlike traditional bank deposits, shares, or property, many digital assets lack standard nomination mechanisms, physical paperwork, or clear transmission procedures. As noted by Aayushi Singh, senior partner at Legum Solis, legal rights may exist on paper, but families often have no practical ability to enforce them due to the nature of digital assets depending on access credentials and platform-specific terms of service rather than conventional ownership documents.
Digital succession disputes differ fundamentally from traditional inheritance because ownership and access are intertwined, according to legal experts cited by Business Standard. 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 these credentials are lost or known only to the deceased owner, assets may become permanently inaccessible. As noted by Kunal Sharma of TARAksh Lawyers and Consultants, legal succession alone may not ensure actual transfer or recovery of the asset. Tushar Kumar, advocate at the Supreme Court of India, emphasized that digital assets frequently exist within encrypted ecosystems governed by foreign platform policies and private technological protocols, leaving behind little or no paper trail. This creates situations where heirs may legally inherit assets but still remain locked out because they lack passwords, recovery phrases, or platform approvals.
India lacks a dedicated legal framework governing digital succession, as reported by Business Standard. Existing laws such as the Indian Succession Act, 1925, and Hindu Succession Act, 1956 were drafted with conventional movable and immovable property in mind and do not expressly define digital property, crypto inheritance, fiduciary access rights, or digital executors. However, the Madras High Court's October 2025 ruling in Rhutikumari v. Zanmai Labs recognised cryptocurrency as property capable of ownership, trust, and inheritance, though broader statutory uncertainty remains. According to Aayushi Singh, the legal position shifted significantly after this ruling, which helped fill a doctrinal gap for virtual digital assets and confirmed that Indian courts could exercise jurisdiction even where crypto platforms are based offshore. However, Hardeep Sachdeva of AZB & Partners cautioned that the ruling still does not solve operational problems involving foreign exchanges, decentralised blockchain systems, or overseas platform policies.
Technology platforms often treat accounts as personal and non-transferable licenses instead of inheritable property, as reported by Business Standard. Social media platforms, cloud storage services, and crypto exchanges may impose privacy and contractual restrictions even after a user's death. Shweta Tungare, cofounder of LawTarazoo, noted that families often inherit a legal right they may have no practical ability to enforce. Platforms frequently demand death certificates, probate orders, or notarised legal documents before considering access requests, and may still refuse access due to privacy obligations or internal policies. The problem has intensified after the Supreme Court's privacy ruling in Justice K S Puttaswamy v. Union of India, which recognised informational privacy as a fundamental right, with platforms increasingly citing privacy protections while denying account access to heirs.
Experts recommend several steps for individuals to address digital asset inheritance challenges, according to Business Standard. These include specifically listing digital assets in wills instead of using generic references, maintaining secure inventories of wallets, exchanges, and online accounts, and avoiding writing passwords directly into wills since probate records may become public. They also suggest using encrypted password managers, sealed memorandums, or custodial arrangements for sensitive credentials, appointing executors with explicit digital asset authority, and utilizing platform legacy tools such as Google Inactive Account Manager, Apple Digital Legacy, and Meta Legacy Contact. As noted by Tushar Kumar, modern inheritance disputes may arise not from uncertainty over legal heirs but from whether estates can be located, authenticated, and lawfully accessed. Experts also highlighted confusion between nominees and legal heirs, with the Supreme Court's ruling in Shakti Yezdani v. Jayanand Jayant Salgaonkar clarifying that nomination does not automatically confer beneficial ownership, emphasizing the importance of proper succession planning for digital assets.
