A person's wealth in Kuwait is no longer limited to registered property or a bank account the family knows by name. Many people now manage a significant share of their money from a phone: a banking app holding several accounts and deposits, an e-wallet with a balance, a brokerage app used to buy shares on Boursa Kuwait or on foreign markets, a crypto-trading platform, store credit, and sometimes an entire business run from a social media account. When the owner dies suddenly, the heirs discover that they are facing real money whose location they do not know and whose keys they do not hold.
In Digital Inheritance under Kuwaiti Law we set out the general picture of which digital assets form part of the estate, and in Wills and Inheritance in Kuwait we explained the rules of distribution and the certificate of inheritance. This article takes a narrower, practical angle: digital assets with real monetary value, how heirs establish their standing before banks, brokers and platforms, what can be done when the money sits in a crypto wallet whose keys are lost, and how a minor heir's share of these assets is protected.
We begin with a quick answer, then the legislative framework, the substantive rules for each type of digital asset, the general judicial principles, the practical steps and documents, three hypothetical cases, a quick comparison, frequently asked questions, and finally advice on organising one's digital estate during one's lifetime, before these assets become a puzzle that exhausts the family.
The Quick Answer
Every financial right the deceased held at the time of death forms part of the estate, whatever medium it sits in: the balance of the bank account managed from an app, a redeemable e-wallet balance, shares and fund units registered in the deceased's name with a broker, the cryptocurrency the deceased owned, and profits and receivables pending with payment gateways and selling platforms. The electronic form does not change the nature of the money, and it does not extinguish the heirs' right to it.
Access to these assets, however, does not come through the password. It comes through proof of standing: the death certificate, the certificate of inheritance issued by the competent authority, whatever additional documents each institution requires, and a power of attorney for whoever represents the heirs. An heir who logs into the app with the deceased's password and moves money out is not taking a lawful route, and may expose themselves to liability and to a dispute with the other heirs.
As for cryptocurrency held in a self-custody wallet whose private keys or recovery phrase are lost, the heirs' right to it exists in principle, but there is no institution that can be compelled to open it; in most cases it is lost in practice unless the keys are found. This is why planning during one's lifetime is the real protection. A minor heir's share of all these assets is subject to the rules of guardianship and to the supervision of the authority responsible for minors' affairs, and no heir may take it over unilaterally.
The Legislative Framework
To our knowledge at the time of writing, Kuwait has no dedicated statute on "digital inheritance". The rules are drawn from general legislation that applies to property whatever its form:
- Personal Status Law No. 51 of 1984: governs inheritance and wills, identifies the heirs and their shares, and sets the order of claims against the estate: funeral expenses, payment of debts, execution of any will, and then distribution of the remainder. Separate rules apply to those outside the scope of this law, including personal status rules for non-Muslims.
- The Civil Code (Decree-Law No. 67 of 1980): lays down the general rules on property and financial rights, the transfer of rights and obligations to universal successors, and the contract rules that govern the deceased's relationship with a bank, a platform or a broker.
- Civil and Commercial Procedure Law No. 38 of 1980: governs the lawsuits heirs may need, orders on petition, precautionary attachment and enforcement.
- Electronic Transactions Law No. 20 of 2014: recognises electronic records and signatures and their evidential value, which matters when proving the existence of accounts, balances and transactions the deceased carried out online.
- Law No. 63 of 2015 on Combating Information Technology Crimes: criminalises unlawful access to systems and accounts, which makes using the deceased's passwords without a proper legal basis a risky course.
- Banking and financial legislation: including Law No. 32 of 1968 on Currency, the Central Bank of Kuwait and the Organisation of Banking Business together with the Central Bank's instructions, and Law No. 7 of 2010 establishing the Capital Markets Authority and its executive regulations. These govern how banks and brokers handle the accounts and shares of deceased customers.
Alongside legislation, each platform's relationship with the deceased is governed by the terms of use the deceased accepted, many of which are subject to foreign law. Those terms regulate procedure and the means of proof, but in our view they cannot cancel the heirs' right to the money itself where it was property of the deceased, because the rules of inheritance in Kuwait are tied to public order. We covered the regulatory position on cryptocurrency in Cryptocurrencies and Virtual Assets in Kuwait and do not repeat it here.
Substantive Rules
1. The dividing line: what forms part of the estate
The test we suggest is simple: does the item have a monetary value that can be assessed, transferred or redeemed? If so, it belongs to the estate and is divided among the heirs according to their shares after debts are paid and any will is executed within its limits. If it is merely a personal right to use a service, or personal content with no monetary value, it is not, as a rule, divided like money, although the family may have a legitimate interest in preserving or closing it.
On that basis the estate usually includes bank balances, deposits, shares and fund units, cryptocurrency, withdrawable cash balances in e-wallets, amounts owed to the deceased by payment gateways or selling platforms, dividends due, and income-producing intellectual property. Private messages, family photos and correspondence are not, as a rule, money to be divided; they are governed by considerations of privacy and the private life of the deceased and of those who corresponded with them. There remain grey areas, such as loyalty points or restricted gift balances, whose status depends on the issuer's terms and on whether they can be redeemed for cash.
2. Bank accounts managed through apps
A banking app is not property in itself; it is a window onto an ordinary account held in the deceased's name at a licensed bank. The balance is unquestionably part of the estate, and the relationship with the bank is contractual, with its financial effects passing to the heirs. In practice, once a bank is notified of a death it stops transactions on the account and deactivates the linked cards and digital services, to protect the estate from later withdrawals.
The bank will usually ask for the death certificate, the certificate of inheritance and the heirs' identification, and will then pay out the balance according to the shares stated in the certificate or to a person authorised by all the heirs, handling any minor's share under the rules that protect a minor's property. It may ask for further documents under its internal policy and the regulator's instructions. Heirs should know that banking secrecy cannot be raised against them once their standing is proven, since they succeed to the deceased's rights, although the bank will verify that standing carefully before disclosing anything. We explained the limits of that secrecy in Banking Secrecy, Account Freezes and Attachment in Kuwait.
A recurring practical problem is joint accounts and accounts on which the deceased was merely an authorised signatory. An account opened in someone else's name does not enter the estate just because the deceased ran it from his phone; conversely, money registered in the deceased's name remains part of the estate even if one of the children actually managed it. What counts is the account holder in the bank's records and the source of the funds, and any claim to the contrary must be proven. In a joint account, the deceased's share depends on the account-opening terms and the proven contribution of each holder, a question that generates many disputes and requires careful review of the documents.
A common mistake is for a family member to keep transferring money out of the deceased's account through the app after the death, to cover funeral costs or urgent obligations. However well-intentioned, such transfers deal with money that now belongs to all the heirs; the person who made them may be required to return what was withdrawn, and may face further liability. The correct route is a written agreement among the heirs, waiting for the certificate of inheritance, or going to court in urgent cases.
3. E-wallets, store credit and in-app balances
E-wallets and app balances come in different forms, and the distinction matters:
- Payment wallets linked to a card or account: many hold no separate balance and simply charge the underlying bank account or card. There is no separate money in the wallet; the real money is in the bank account.
- Wallets holding a withdrawable cash balance: the balance is a debt owed by the operator to the wallet holder, so it forms part of the estate and the heirs can claim it under the operator's procedures.
- Store credit, gift cards and loyalty points: the terms may restrict their use to the holder and prohibit transfer or cash redemption. Their value is usually modest, claims depend on the issuer's terms, and a dispute over them may not be worthwhile.
- Receivables held by payment gateways and selling platforms: if the deceased sold online, sums collected from customers and still held by the gateway before transfer to the deceased's account are the deceased's money and form part of the estate.
The practical rule: compile a list of every financial app on the deceased's phone, email and text messages, because confirmation messages and notifications are often the only evidence that a balance exists with an institution the family knew nothing about.
4. Shares and funds bought through brokerage apps
Shares listed on Boursa Kuwait that the deceased bought through a broker's app remain registered in the deceased's name in the records of the entity responsible for custody and shareholder registers; the app is merely a tool for placing orders. The shares are part of the estate and pass to the heirs through the transfer-by-inheritance procedures set by the competent bodies under the Capital Markets Authority law and its regulations, not by selling them from the deceased's account.
The heirs face a choice: transfer the shares to each heir according to his or her share, or agree to sell them and divide the proceeds. If one of the heirs is a minor, selling the minor's share is subject to the restrictions of guardianship and the approval of the competent authority. Matters differ where the shares are held on foreign markets through a foreign broker: the broker is subject to the law and procedures of its own country, may require certified and translated documents, and sometimes court proceedings there, which can be lengthy and costly.
Heirs should also watch for dividends, distributions and bonus shares that fall due after death on the estate's shares; these follow the shares and belong to the estate. The same applies to pending orders executed after death, which may raise questions requiring close review of the account statements. It is also useful to request a portfolio statement as at the date of death, because share values move daily and the heirs may need a fixed reference date for any buy-out or division.
5. Cryptocurrency and lost keys
Cryptocurrency owned by the deceased has an assessable market value and is, in that sense, property that forms part of the estate under the general rules, whatever the cautious regulatory position on trading it in Kuwait, and regardless of the jurisprudential debate on dealing in it, which this article does not settle. The decisive question is not "do the heirs inherit it?" but "can it be reached?", and the answer depends on how it was held:
- Coins held on a trading platform (custodial): the platform holds the keys and its relationship with the deceased is contractual. The heirs can approach it with the death certificate and the certificate of inheritance, and many platforms have procedures for deceased users' accounts. Most, however, are outside Kuwait, so they will ask for certified and translated documents, may apply foreign law, and may impose lengthy verification.
- Coins in a self-custody wallet: the private keys or recovery phrase were held by the deceased alone. If they are found, the heirs can access the coins, and must then deal with them by agreement of all, since they are jointly owned. If the keys are lost, there is no central party to write to or obtain a judgment against; the coins remain recorded on the network but are practically unrecoverable.
Two warnings follow. First, anyone offering heirs a "recovery" of a wallet with lost keys against an upfront fee deserves great caution; this is a recurring fraud pattern, and handing over devices or remaining data may destroy whatever could have been saved. Second, an heir who finds the keys may not keep the coins for himself; they belong to the estate, and moving them to a personal wallet without the others' knowledge may expose that heir to civil and possibly criminal claims. The safer course is a written record of agreement among the heirs on how the coins will be handled, bearing in mind the regulatory constraints on converting them to cash.
6. Business accounts on social media and online stores
Where the deceased ran a business from a social media account or an online store, several elements must be distinguished: the account itself, usually a licence to use granted by the platform under its terms; the business, including stock, receivables from customers, balances with payment gateways and supplier contracts; the commercial licence, if any; and the trade name and trademark, if registered.
The financial elements of the business form part of the estate, as do a registered trademark and trade name as rights of value. Whether the follower base and the account itself can pass depends in practice on the platform's terms, and many platforms do not allow an account to be transferred to anyone other than its holder. Heirs may therefore find that the account can be closed or memorialised while the business itself continues from a new account. If the heirs decide to sell the business, the risks we described in Buying and Selling Online Accounts and Stores in Kuwait apply with even greater force, because the seller is a group of heirs that may include a minor.
The business's obligations must also be addressed: orders paid for but not delivered, supplier debts and lease obligations. These are debts of the estate, payable before distribution; we covered the heirs' exposure in Estate Debts under Kuwaiti Law.
7. Personal content and platform policies after death
Private messages, photos and chats are not divided like money, and no heir may publish or exploit them in a way that harms the deceased's reputation or the privacy of those they corresponded with. The other party to a private conversation is alive and has a right not to have their messages exposed. Where some correspondence is needed to prove a financial right, such as invoices or business agreements, only what is necessary for proof should be used.
The major platforms generally offer one or more of the following options, with details differing between platforms and changing over time: reporting the death with supporting evidence; memorialising the account so that it stays visible but cannot be logged into; requesting deletion by an immediate family member or the estate's representative; and nominating someone during one's lifetime to manage the account or receive its data if it becomes inactive for a set period. As is generally understood, most platforms do not hand over passwords, and they release message content only in limited circumstances. Heirs should therefore consult each platform's official help pages when the need arises rather than rely on circulating information that may be out of date.
8. Passwords and leaving them by will
A password is not property that is inherited; it is a means of access. Leaving one's passwords to one child does not make that child the owner of what the accounts hold, nor entitle him to deal with it alone. A will made during one's lifetime takes effect within the limits set by the Personal Status Law, including the rule that it is not effective beyond one third of the estate after debts without the heirs' consent, and bequests to an heir are subject to special rules that must be verified. A clause such as "I leave my crypto wallet to my son" therefore does not necessarily mean the whole wallet passes to him. We covered the limits of wills in Wills under Kuwaiti Law.
The better approach is to separate two things: administrative guidance, which says where the assets are, how they can be reached and who should gather the information, and which transfers no ownership; and disposition of the property, which is governed by the rules of inheritance and wills. Passwords are best kept out of the text of the will itself, which may be read by many people, and stored securely in a place the will refers to, and updated whenever they change.
9. A minor heir's share of digital assets
Where one of the heirs is a minor, the minor's share of balances, shares and cryptocurrency is not handed to a sibling or relative to use as they see fit. Dealing in a minor's property is subject to the rules of guardianship, and the Public Authority for Minors' Affairs, in the cases defined by its law, manages or supervises the minor's property. We covered the Authority's role in The Public Authority for Minors' Affairs in Kuwait and guardianship in Guardianship and Custodianship under Kuwaiti Law.
Digital assets carry a particular risk: they are easy to move and volatile in value, and anyone holding the password can move them in minutes. We therefore advise notifying the bank and the broker of the death immediately, documenting each account's balance as at the date of death, and not dealing in any cryptocurrency whose keys are known except under a documented agreement that protects the minor's share and is put before the competent authority where required.
Principles of the Court of Cassation
We are not aware, at the time of writing, of a published judgment of the Kuwaiti Court of Cassation dealing directly with digital assets after death. The Court has, however, settled general principles on estates, property and evidence that apply to such assets by their nature. We state them in general terms:
- That the rules of inheritance, the identification of heirs and their shares, and the passing of the estate to them are tied to public order; they cannot be varied by agreement, and no party to a contract can deprive an heir of a right established by law.
- That a certificate of inheritance is evidence of death and heirship unless a judgment holds otherwise, and that anyone disputing it must follow the route the law provides to prove the contrary.
- That the debts of the deceased attach to the estate, and an heir is not liable for them from his own property but only to the extent of what he received from the estate.
- That an heir may claim the estate's rights and represents the estate in related lawsuits for the benefit of the other heirs, within the limits the law sets.
- That establishing the facts and weighing the evidence, including electronic records and printouts, lies within the discretion of the trial court, provided its reasoning is sound and grounded in the file.
- That an heir who takes possession of estate property and keeps it from the others must return their shares to them and account for what he received when asked to do so.
Methodological note: we have deliberately omitted appeal numbers and judgment dates, because citing a specific judgment accurately requires reviewing its full text and facts from official sources. The principles above are stated in their general, settled form, and applying them to digital assets is our analysis rather than a quotation of any particular judgment. When drafting a statement of claim or a memorandum, the lawyer cites specific judgments from their sources.
Practical Steps and Documents
The following order is what we recommend in practice after a death, bearing in mind that each institution's requirements may differ:
- 1. Preserve, do not act. Keep the deceased's phone, computer and devices somewhere safe; do not wipe anything and do not try to move money from them. The devices are the map of the assets, and tampering may destroy evidence or trigger a dispute.
- 2. Inventory the digital assets. List the banking, brokerage, wallet, trading and store apps, using text messages, emails, statements and notifications. Record each institution's name and its official contact channel.
- 3. Obtain the death certificate and certificate of inheritance. The certificate of inheritance is the core document proving standing and is issued by the competent authority at the Ministry of Justice. Obtain enough copies, since each institution will want its own.
- 4. Notify banks and brokers. Give each bank and broker written notice of the death, ask them to stop transactions on the accounts, and request a statement of balances as at the date of death, which will be the basis for distribution.
- 5. Unify the heirs' representation. It is usually easiest for the adult heirs to appoint one of them or a lawyer under a special formal power of attorney covering dealings with banks, brokers and platforms, rather than each heir approaching them separately.
- 6. Approach foreign platforms. Review each platform's official procedure, prepare the documents it asks for with certified translations and attestations, and keep a copy of every message and request number.
- 7. Protect the minor's share. Notify the authority responsible for minors' affairs where required, and do not deal in the minor's share except as it decides.
- 8. Pay debts before distribution. Check the deceased's debts, including credit card balances, loans and business obligations, because distributing before they are paid may come back on the heirs.
- 9. Document the division. Put a written division or buy-out agreement in place that expressly covers the digital assets; we covered buy-outs among heirs (takharuj) separately.
- 10. Go to court if necessary. If an institution refuses to deal despite complete documents, or an heir has appropriated a digital asset, the route is a court claim after the facts are reviewed, with precautionary attachment where its conditions are met.
Core documents: death certificate, certificate of inheritance, the heirs' civil ID cards, the formal power of attorney for their representative, proof of guardianship over any minor, account statements or screenshots showing the balance, and any written will. Foreign institutions may require certified translations and further attestations.
If the deceased was an employee, salary arrears and end-of-service benefits are claimed from the employer through a separate process, covered in Death of an Employee in Kuwait.
Hypothetical Cases
Case 1: A son transfers his father's balance through the app after death
Hypothetical facts: Khaled died leaving a wife and four children, one of them a minor. His eldest son knew the login code for the banking app and, the day after the death, transferred a large sum to his own account, saying it was for funeral and family expenses. He then refused to account for what he had spent.
Legal analysis: the amount transferred was part of the estate at the moment of death and belongs to all the heirs, including the wife and the minor. What the son actually spent on the funeral may be credited to him if he proves it; the rest must be returned to the estate. The heirs may ask the bank for a statement from the date of death to prove the transfer, and may call on him, first amicably and then in court, to account for and return what he took, while notifying the authority responsible for minors' affairs to protect the minor's share. Using the login code after death without a legal basis may also raise liability depending on the circumstances.
Case 2: Cryptocurrency without keys
Hypothetical facts: Sara died, and her heirs found emails showing that she had bought cryptocurrency years earlier on a foreign trading platform and later moved part of it to a self-custody wallet. No one knows the recovery phrase.
Legal analysis: the portion still on the platform can be claimed by approaching the platform with the death certificate, the certificate of inheritance and whatever certified and translated documents it requires, expecting the claim to be governed by the platform's terms and law. For the portion moved to the self-custody wallet, the heirs' right exists in principle, but there is no party that can be compelled to open the wallet; the only hope is a methodical search for the recovery phrase among the deceased's papers and belongings. The heirs should beware of anyone offering a "recovery" service for upfront payments.
Case 3: An online store on social media
Hypothetical facts: Fahad ran a perfume business through a social media account with tens of thousands of followers. He had stock in a rented storeroom, funds held by a payment gateway, and paid orders not yet delivered. After his death the heirs disagreed: some wanted to continue the business, others to sell.
Legal analysis: the stock, the gateway funds, the receivables and any registered trade name are financial elements of the estate, and the paid but undelivered orders are obligations of the estate to be fulfilled or refunded. Whether the account itself can pass depends on the platform's terms. The safest solution is a written agreement among the heirs: either an entity is set up to continue the business with each heir's share defined, or the business is sold and the proceeds divided, or some heirs buy out the others, always protecting any minor's share and obtaining the competent authority's approval where required.
Quick Comparison of Digital Asset Types
- Bank account managed via an app: clearly part of the estate; accessed through the bank with the certificate of inheritance; frozen on notice of death; low difficulty once documents are complete.
- Shares via a local brokerage app: part of the estate; transferred through inheritance procedures with the competent bodies; dealing in a minor's share is restricted; moderate difficulty.
- Shares with a foreign broker: part of the estate, but the procedure follows the broker's home law and may require attestations and proceedings abroad; high difficulty.
- Withdrawable e-wallet balance: part of the estate; recovered under the operator's procedures.
- Store credit and loyalty points: status depends on the issuer's terms; often non-transferable; usually of limited value.
- Cryptocurrency on a trading platform: part of the estate; accessed by approaching the platform with certified documents; foreign law may apply.
- Self-custody crypto with known keys: part of the estate; must be handled by agreement of all heirs.
- Self-custody crypto with lost keys: the right exists in principle, but the coins are usually unrecoverable in practice.
- Business account on social media: the business's financial elements belong to the estate; the account itself is subject to the platform's terms.
- Messages, photos and personal content: not property to be divided; governed by privacy; the family's options are reporting, memorialisation or deletion under the platform's policy.
Frequently Asked Questions
May I use my late father's password to withdraw his balance?
We strongly advise against it. After death the money belongs to all the heirs, and accessing the account and moving funds without a legal basis may expose you to a claim for repayment and to liability. The correct route is to notify the bank and present the certificate of inheritance.
Will the bank give me the deceased's account statement?
Once your standing as an heir is proven with the required documents, the heirs are entitled to know the estate's balances and movements to the extent needed to protect their rights; the details are subject to the bank's policy and the regulator's instructions.
Does cryptocurrency form part of the estate despite Kuwait's cautious regulatory stance?
If it has an assessable monetary value, it is the deceased's property and forms part of the estate under the general rules. The regulatory stance affects how it can be converted to cash, not whether the heirs have a right to it. The religious ruling on dealing in it is a separate question.
What if we cannot find the keys to the crypto wallet?
Search carefully through the deceased's papers, belongings, devices and email for the recovery phrase, without handing devices to unknown parties. If it cannot be found, the coins are usually unrecoverable and there is no party that can be sued to open the wallet.
Can the deceased's social media account be transferred to an heir?
That depends on the platform's terms, and many do not allow transfer. The business elements linked to the account, such as stock, receivables and a registered trademark, do form part of the estate and pass under the general rules.
Is a will leaving the crypto wallet to one son effective?
A will takes effect within the limits set by the Personal Status Law: it is not effective beyond one third of the estate after debts without the heirs' consent, and bequests to an heir are subject to special rules that must be checked in each case.
Who receives a minor heir's share of bank balances and shares?
It is not handed to a sibling or relative to use; it is subject to the rules of guardianship and to the supervision of the authority responsible for minors' affairs in the cases the law defines.
Are the heirs liable for the deceased's credit card debt?
The deceased's debts are paid from the estate before distribution, and an heir is not liable for them from his own property beyond what he received from the estate.
Can a platform refuse to release a balance to the heirs because of its terms of use?
The terms govern procedure and proof, but in our view they cannot extinguish the heirs' right to property owned by the deceased. A claim against a foreign platform may, however, run into foreign law and foreign courts, which requires case-by-case assessment.
May one heir delete the deceased's accounts or messages?
Deletion or memorialisation requests are usually open to immediate family under the platform's policy, but first make sure the account holds no financial information or evidence of the estate's rights, and preferably act with the other heirs' knowledge.
How long does releasing the deceased's digital assets take?
It varies with the type of asset, the institution, how quickly documents are obtained, whether the heirs agree, and whether a minor is involved. Local accounts are usually quicker than foreign platforms, which may take considerably longer.
What if we did not know the deceased had any accounts?
Start with the devices, email, text messages and known account statements; transfers between accounts often reveal other accounts. Once their standing is proven, heirs can also enquire with institutions where accounts are likely to exist.
Conclusion
In the eyes of the law, digital assets are not a new kind of property; they are ordinary property held in a new way. The familiar rules of inheritance, wills and debts apply to them, the heirs share them according to their entitlements, and a minor's share is protected just as it is in land or cash. What is new is how hard they are to reach and how easy they are to tamper with: money that can be moved with a fingertip calls for twice the care from the family after a death.
The best thing a person can do for the family is therefore to organise the digital estate during one's lifetime: an up-to-date list of accounts and institutions, without passwords, kept somewhere safe and known to a trusted person; a secure method of storing crypto keys and recovery phrases, referred to in the will; activating the legacy-contact or inactive-account options some platforms offer; keeping business and personal accounts separate; and a written will that distinguishes administrative guidance from disposition of property, within the legal limits on bequests.
For heirs, our advice in short: preserve rather than act, take inventory before dividing, prove your standing through the proper channels, do not hand devices or keys to anyone promising miracles, protect the minor's share, and put every agreement in writing.
Legal Notice
This article is general legal information about Kuwaiti law and does not constitute legal advice, nor does it create a relationship between the reader and the firm. The rules described are subject to legislative amendment and to judicial application to the facts of each case, and the policies of platforms and financial institutions vary and change over time, so they should be verified with each institution when needed.
If you are an heir struggling to reach a relative's assets held with banks, brokers or digital platforms, if a dispute has arisen among heirs over a digital asset, or if you wish to organise your will and digital estate during your lifetime, the team at Yumnaak Law Firm will be glad to review your situation and guide you to the right course. Contact us through our Contact page or book an appointment.
