Have you ever considered what would happen to your digital life if you were to pass away? Would your loved ones know how to access your devices or online accounts? Would they have the passwords to log in, or even know which accounts you had in the first place?
In today’s digital age, an increasing number of our assets, memories, and information exist online. These digital possessions – ranging from social media accounts to cryptocurrencies – can hold significant financial or sentimental value. Yet, many people overlook these assets when creating their estate plans, risking their inaccessibility or permanent loss after passing away.
If you’re preparing or updating your Will, it’s vital to include your digital assets to provide clarity and peace of mind for your loved ones.
What are Digital Assets
Digital assets encompass possessions in a digital format that hold financial, sentimental, or practical value. Examples include:
- Cryptocurrencies: Bitcoin, Ethereum, or other blockchain-based assets.
- Monetized Accounts: Income-generating social media profiles, YouTube channels, or blogs.
- Online Financial Accounts: Platforms like PayPal, Stripe, or online banking accounts.
- Gaming and Virtual Assets: In-game credits, skins, or virtual real estate.
- Digital Artworks and NFTs: Creative works such as graphics, music, or videos stored online.
- Sentimental Digital Items: Photos, videos, or private messages stored on devices or in the cloud.
Each of these assets often requires specific access credentials, such as passwords or private keys, making their inclusion in your estate plan crucial.
What Happens to Digital Assets when you Die
If you pass away without a valid Will, your digital assets will be distributed according to intestacy rules, along with the rest of your estate. This can lead to complications:
- Unawareness of certain assets may leave them undiscovered and inaccessible.
- Sensitive information or assets might fall into unintended hands.
- Valuable digital assets, like cryptocurrencies, could be permanently lost without access credentials.
Even with a Will, excluding specific provisions for digital assets can create difficulties for your executors:
- Companies often have strict access policies, hindering executors from managing digital accounts.
- Without clear instructions, digital possessions may be mismanaged or overlooked.
By including detailed instructions in your Will, you can:
- Assign specific beneficiaries for each digital asset.
- Outline the management, transfer, or deletion of accounts.
- Ensure sensitive or private information is handled according to your wishes.
Steps to Protect your Digital Assets
- Create an inventory
Maintain an up-to-date list of your digital assets, including:
- Account names and types.
- Securely stored access credentials (avoid including them directly in your Will).
- Instructions for accessing or managing these accounts.
- Incorporate digital assets into your will
Include provisions in your Will detailing the handling of your digital assets. For instance, you may wish to appoint a digital executor skilled in managing online accounts or cryptocurrencies.
- Use secure storage solutions
Store passwords and access keys securely using a password manager or other reliable tool. Provide trusted individuals with instructions on how to access this information when needed.
- Review and update regularly
As technology evolves, so does your digital footprint. Regularly update your Will and inventory to ensure all assets are accounted for.
- Seek professional advice
Planning for digital assets can be intricate, particularly for high-value items like cryptocurrencies or monetized accounts. Consulting a specialist solicitor ensures your Will is clear, legally sound, and comprehensive.
Secure your Digital Legacy
Our Wills, Trusts, and Probate experts can guide you through the process of safeguarding your physical and digital assets. Contact us today to discuss your digital legacy and achieve peace of mind for you and your loved ones.