In today’s evolving digital age, you may ask who owns and can access your digital assets when you pass away. Individuals have integrated their online presence and digital assets into their everyday lives. Estate planning includes digital assets, from social media to online banking, which can hold both financial and emotional value.
What Are Digital Assets?
Digital assets refer to a broad array of online and digital content stored physical electronics or cloud services. Some assets may have financial value while some may have personal sentimental value. Digital assets can include:
- Social media profiles (Facebook, Instagram, LinkedIn, TikTok)
- Email accounts and storage (Google, iCloud, Dropbox)
- Digital media including photos, documents and videos
- Online bank accounts and cryptocurrencies
- Personal websites, blogs and domain names
- Online Subscriptions
- NFT’s and digital artwork
The Importance Of Digital Estate Planning
When people start estate planning and drafting a Will, they often focus on distributing physical assets such as property, money, and personal belongings. Many overlook their digital assets which can lead to complications during probate. These challenges can include:
- Executors or beneficiaries may lack access to essential passwords or login credentials, making it difficult to retrieve digital assets, which can become inaccessible or permanently lost.
- Cryptocurrencies may have valuation difficulties with fluctuations and changing market trends.
- Without clear instructions on relevant data protection and privacy laws, the deceased might prefer to block access to specific accounts.
- Some digital accounts, such as online subscriptions, are governed by user agreements that do not confer legal ownership and may not be transferable or accessible after death.
How To Prepare Digital Assets
Creating a will provides a clear framework for managing these digital assets, ensuring that specific instructions are documented and followed. It is important to firstly create an inventory of owned digital assets including account details and passwords which can be managed by a designated executor. Appointing the executor will be trusted to manage and access your assets. Some social media platforms including Google and Facebook, offers a legacy tool to allow users to manage your account after death.
Legal Considerations
The law around digital assets are still evolving with new technology which arises more questions about data protection, privacy and ownership. Outside risks which may include fraud or hackers if not stored securely. Once digital assets have been identified and valued. Assets such as cryptocurrencies may be subject to inheritance tax and must be reported to HMRC as part of the deceased estate.
Final Thoughts
With technology evolving rapidly in today’s digital age, it’s easy to overlook valuable digital assets when planning your estate. Taking time to secure these assets now ensures your loved ones can benefit from them in the future.
If you have been contacted by a probate firm, you may be curious about probate and how the process works. Whether you need assistance navigating a case or trying to trace a missing beneficiary, please contact us. For more articles, please click here.
