For Bitcoin estates, this distinction has real consequences. Liquidating inside the estate creates a taxable event at the estate level; transferring the Bitcoin to the beneficiary generally does not, and the beneficiary inherits a cost base determined under the deceased-estate rules.
In-specie transfer is also a custody exercise, not just a paperwork one. The beneficiary needs a wallet they actually control, a rehearsed receiving process, and a documented setup of their own - otherwise the estate has solved a tax problem by creating a new loss risk.
Tax outcomes depend on individual circumstances and are matters for your accountant. BlockByte provides the templates and guidance you use to record the holding detail your accountant and solicitor rely on.