Are your digital assets documented in your Will?
With more of our lives now online, digital assets have become an essential consideration in modern estate planning. Here’s how to ensure your valuable online property is protected and passed on according to your wishes.
What is a digital asset?
A digital asset is any item of value that is digital in nature and stored electronically.
Here are some examples of digital assets:
- Online bank accounts
- Cryptocurrencies and non-fingible tokens (NFTs)
- Social media and email accounts (including those that are income generating)
- Photos and videos stored online
- Digital music and streaming service accounts
- Domain names, websites and blog posts
- Loyalty points
Digital asset challenges
Unlike traditional assets, digital assets present unique challenges:
- Legal uncertainty: Laws around digital asset ownership, control and transfer after death are still evolving, and differ between jurisdictions.
- Access difficulties: Many online services restrict access, even to next of kin or executors, due to privacy laws, user agreements and licence.
- Password protection: Without up-to-date logins or clear instructions, valuable accounts can be lost forever.
- Identifying assets: Digital assets are often overlooked, especially if they are not well documented.
- Some digital assets, like cryptocurrency portfolios, can hold significant value but may go unnoticed due to other important matters.
How to include them in your estate plan
To ensure your digital assets are protected and transferred according to your wishes, consider these steps:
1. Audit your digital assets and accounts
Create a comprehensive inventory of your digital accounts, assets, and any relevant instructions (including passwords, stored securely).
2. Review service agreements
Understand the terms and conditions of each platform, as some prohibit account transfers or access by others after death.
3. Appoint a digital executor
Instruct someone you trust to manage or close your digital accounts according to your wishes as part of your estate planning process.
4. Use secure storage options
You should make sure you’re storing your passwords and access information securely. They should never be stored in your Will, but in a way your executor can access when needed.
This is where Aintree Custodian comes in – a secure, digital vault or safety deposit box used to store and protect your digital assets, such as legal documents and passwords.
It is a completely free service that Aintree Group Legal use as a tool to store and distribute your information safely. Once you are set up on Aintree Custodian so you can utilise this tool anytime you need.
5. Update your Will and estate plan
Work with a legal advisor to ensure your Will includes clear instructions about your assets and who is authorised to manage them.
Digital asset planning is an integral part of protecting your legacy.
For individual advice on how to secure your digital assets in your estate plan, contact our legal team at Aintree Group.
This is general advice only and has not been prepared with your situation and needs in mind. For individual and personalised advice, we highly recommend that you seek out proper professional advice from your lawyer.
