In today’s world, our lives are becoming more connected online. From email accounts and social media to online banking, photos, and cryptoassets, our digital footprint can be both financially valuable and personally meaningful. Yet many people neglect these assets when planning for the future. Without suitable arrangements, families and executors can encounter significant difficulties in accessing or managing them after someone dies.
What counts as a digital asset?
The term “digital assets” refers to any type of electronic data stored on devices or online platforms. Typical examples include:
- Email accounts and cloud storage
- Social media profiles (Facebook, Instagram, LinkedIn, X, and others)
- Online banking, investment and shopping accounts
- Music, film and e-book libraries
- Photos and videos stored on personal devices or online services
- Cryptoassets such as cryptocurrencies and NFTs (non-fungible tokens)
Because technology develops rapidly, new kinds of digital assets are likely to emerge. This makes it even more important to conduct regular estate planning reviews.
Why do digital assets matter in estate planning?
Unlike physical property, which can be locked away, digital assets are protected by passwords, encryption, and multi-factor authentication. Without prior planning, executors or family members may be unable to access them. This can lead to the loss of sentimental items, such as photographs, or significant financial value when cryptoassets are involved.
How do I go about recording and managing my wishes?
To simplify matters, it is wise to:
- Create an inventoryof digital assets, including login details and access methods, stored securely
- Nominate a trusted person to handle your digital estate, sometimes called a “digital executor”
- Set out your intentions clearly, such as whether accounts should be closed, transferred, or memorialised.
- Address cryptoassets specifically, ensuring private keys and wallet details are passed on safely.
This information can be included in your will. For lifetime incapacity only, it can be recorded in an LPA (Lasting Power of Attorney). An LPA ends on death; afterwards, your executors act. Some providers will still restrict access regardless of your documents, so plan to use their bereavement tools.
Access challenges and jurisdictional issues
Even with thorough planning, practical challenges can occur. Many online platforms are global, meaning different legal systems may apply depending on where data is stored. However, if the correct credentials are available, your nominated person should generally be able to act in accordance with your wishes. Executors should use the platform’s formal process with proof of authority (e.g., Grant of Probate/Letters of Administration).
How do online platforms respond?
Providers have different approaches:
- Facebook and Instagram enable accounts to be “memorialised”, and Facebook allows users to appoint a legacy contact.
- LinkedIn, X (Twitter) and Snapchat do not provide memorialisation services, but accounts can usually be closed upon request.
- Google (including YouTube) offers an “Inactive Account Manager” tool that lets users decide who can access their accounts after a period of inactivity.
The approaches outlined here highlight the importance of taking action in your lifetime to establish preferences.
Planning your digital legacy
Planning ahead for what happens to your digital assets will ensure that your online presence and valuable data are managed according to your wishes. Just as with property or financial accounts, clear instructions can avoid confusion, disputes, or unnecessary loss.
When you carry out estate planning, it is important to consider not just your physical possessions but also your digital footprint. Seeking professional legal advice can help you ensure that your wishes are properly documented, and your digital assets are managed with care.
