As our day-to-day lives become increasingly digitised, it is important to consider what happens to our “digital legacies” – our online and digital assets and records – after we die.
When preparing a Will, it is important to specifically consider your digital assets and records, as standard wording may not fully cover them. Such consideration is essential to protect your digital property from being lost, made inaccessible, or overlooked by your executors after you die.
What are digital assets and records?
A digital asset is a broad term used to describe any personal property stored electronically. This may include things like PayPal accounts, domain names, in-game digital assets, digital carbon credits, crypto tokens, nonfungible tokens (NFTs) and rewards programmes.
Digital records are electronically held data and information, with common examples including social media profiles, email accounts, photos, websites and blogs.
How does estate planning work with digital legacies?
Your digital legacy can be broken down into two key areas for the purposes of estate planning:
- Assets and/or records with monetary value (for example, online banking and cryptocurrency) which may impact the tax due on your estate; and
- Assets and/or records with non-monetary or sentimental value (such as social media profiles and digital photo collections) which will not impact the tax due on your estate but must still be considered in the administration process.
It is important to be aware that licensed digital accounts, such as e-books and film/music streaming accounts, are often not technically owned by the user and may expire upon death rather than passing to a beneficiary. Without proper instructions, your loved ones may struggle to access or manage your digital assets and records after you die, leaving them in limbo. It is therefore important that your digital legacy is not overlooked in the estate planning process.
How to include digital assets in your Will
To ensure your digital assets are properly taken care of, you may wish to start by creating an inventory of all your accounts. This includes everything from investments to banking platforms to social media profiles.
It is important to note that even if a beneficiary inherits an asset, they may not be able to access it if they do not have the relevant passwords. Your passwords should never be included directly in your Will, and you should clearly instruct your executors on how to locate any relevant keys and/or login credentials. To keep your passwords secure, you may wish to utilise a secure password manager or record them in a sealed document stored safely by your solicitor. Strategies such as these help to ensure higher-level security for your digital property.
You may also wish to consider appointing a digital executor, separate from your primary executors, to deal specifically with your digital affairs. Appointment of a digital executor may be relevant if you have significant or complex digital assets, or if you feel that your primary executors may struggle with the digital aspects of your estate. A digital executor may take on specific responsibilities, such as deactivating or memorialising social media accounts, transferring digital files, or accessing cryptocurrency wallets, according to your wishes.
Social Media platform-specific challenges
Every social-media platform (Facebook, X, Instagram, LinkedIn, Pinterest, TikTok, etc.) operates differently. Some social media sites offer options to memorialise accounts, while others may simply delete your accounts unless you provide specific instructions. It also enables your executors to inform followers/ those you are connected with on social media of your passing, as posting on your account may be the only way they have to contact them. Reviewing the policies of the platforms you use will help ensure that your wishes regarding your digital legacy are properly carried out.
Dealing with cryptocurrency
Cryptocurrency presents unique challenges due to its decentralised nature. Unlike traditional financial assets, there is currently no institution that can assist with recovering lost cryptocurrency. This means it is vital to securely store private keys or digital wallet information to ensure that your digital currencies remain protected but can ultimately be accessed by your executors when needed.
Keep details of your digital assets up to date
As with physical assets, your digital assets may change over time. Regularly updating your digital asset inventory is key to ensuring your assets remain organised and accessible to your personal representatives and/or loved ones when needed.
How we can help you protect your digital asset legacy
In today’s digital age, managing a digital legacy is, for many, as important as managing their physical estate. Considering your digital legacy now can help prevent significant complications for your loved ones in the future. It is therefore important to check that your digital assets are adequately covered by your Will to ensure that your wishes can be carried out seamlessly and your digital legacy protected.
If you would like to arrange an appointment to draft a Will, or update an existing one, please contact our Wills, Trusts and Estate Administration team on 0118 975 6622 (Lower Earley) or 01491 570 900 (Henley).