In this digital age, our online presence and digital assets have value – both financial and sentimental. When making a Will or Power of Attorney it’s just as important to manage your digital assets as your physical possessions. However managing digital assets is tricky as they are intangible, hard to access and subject to platform policies and international laws.
What are Digital Assets?
Digital assets are any electronic data that exist online or on digital devices. Some examples include:
- Email accounts
- Social media accounts (Facebook, X (formerly Twitter), Instagram, LinkedIn, etc.)
- Online banking and investment accounts
- Music and video libraries
- Photos and videos stored on cloud services
- Files on your personal computer or cloud storage
- Cryptoassets, including cryptocurrencies and NFTs
As technology changes new types of digital assets will emerge so it’s important to review your estate planning regularly to make sure these assets are included.
Why Digital Assets Matter in Estate Planning
Physical assets are protected by locks and keys whilst digital assets are protected by passwords, encryption and multi-factor authentication. Without prior planning your executors or attorneys will likely struggle to access your digital assets and lose valuable or sentimental content. Some digital assets, especially cryptoassets, have significant financial value so managing them is important for your estate.
Express Your Wishes in Your Will and Power of Attorney
When making your Will or Power of Attorney you need to specify who should manage and access your digital assets. This requires careful planning as some platforms restrict access to the original account holder, regardless of legal documentation. To make managing your digital estate easier consider:
- Make an Inventory: Keep a secure record of all your digital assets, including login details, passwords and security keys. This can be a physical document or an encrypted digital file.
- Nominate a Digital Executor: Choose a trusted person to manage your digital assets in accordance with your wishes.
- Provide Access Details: Give instructions on how to access your assets, especially for accounts that require multi-factor authentication or special security measures.
- State Your Intentions: Decide whether digital accounts should be transferred, deleted or memorialised.
Accessing Digital Assets After Death
Giving your nominee access to your digital assets can be tricky as security measures are designed to prevent unauthorised access. But you can make this process easier:
- Store passwords securely: Use a password manager to store login details and share the master key with your executor.
- Use cloud storage: Store an inventory of digital assets in a shared but secure cloud folder.
- Access to cryptoassets: If you have cryptocurrencies make arrangements for your digital wallet and private keys to be passed on securely.
Jurisdictional Issues
One of the biggest challenges with digital assets after death is jurisdictional differences. Many online platforms and cloud storage services are global so the laws that apply will depend on where the servers are located. But as long as your nominee has the necessary access credentials, they should be able to manage the assets in accordance with your wishes regardless of geographical boundaries.
How Social Media Platforms Handle Digital Accounts
- Facebook & Instagram: Offer a “memorialisation” option where loved ones can view the profile but no one can log in. Facebook also allows users to appoint a ‘legacy contact’ to manage the account after death.
- LinkedIn, X (formerly Twitter) and Snapchat: Do not offer memorialisation services. The account can either stay active or be deleted upon request.
- YouTube & Google: Google’s Inactive Account Manager allows users to appoint someone to access their account after a period of inactivity.
Manage Your Digital Legacy
Don’t forget to plan for your digital assets as well as your physical assets. If you want to make sure your online presence and digital assets are managed in accordance with your wishes you need to include them in your Will and Power of Attorney.
Award-winning private client lawyers
Our estate planning lawyers can help you with digital asset management. Here at Lewis Nedas Law, we pride ourselves on our high standards of thorough, professional will writing, estate planning and administration and Trust advice. We offer a personal sensitive service and can:
- deal with any size of estate;
- draw up lasting Powers of Attorney;
- act either as sole or joint executor;
- prepare the grant application and the Revenue account;
- advise on Inheritance Tax and possible reliefs;
- advise beneficiaries and executors.
If you need advice or assistance with Wills or LPAs, please take expert legal advice from Lewis Nedas Law’s private client solicitors.