When people think about making or updating a Will, they often focus on property, savings and personal possessions. However, an increasingly important part of modern life is what we own – or access – online. These are known as digital assets, and they deserve careful thought when planning your estate.
What are digital assets?
Digital assets are items that exist in electronic form and are accessed online or through digital devices. They can include:
- Email accounts
- Social media profiles (such as Facebook, Instagram or LinkedIn)
- Online banking and payment accounts
- Digital photographs and videos stored in the cloud
- Cryptocurrencies (such as Bitcoin) and online investment accounts
- Websites, blogs and domain names
- Online businesses and income-generating platforms
- Digital music, books and film collections
Some digital assets have financial value, while others may be primarily sentimental. Both can be important to your loved ones after your death.
Digital assets: ownership versus access
One of the key legal issues with digital assets is the difference between owning an asset and simply having a licence to use it. For example, many digital music or e-book collections are not technically “owned” by the user. Instead they’re licensed under strict terms and conditions. These licences often end when a person dies and cannot be transferred to someone else.
In contrast, assets such as cryptocurrencies, domain names or websites may be owned outright and can often be passed on under a Will. Understanding this distinction is crucial, as it affects what can legally be gifted to beneficiaries after your death. It’s another reason why consulting a specialist Will solicitor is important when making or updating your Will.
Digital assets in a Will
Access to digital assets is often controlled by passwords and governed by the service provider’s terms. Even executors may face difficulties accessing accounts without proper authority. Data protection and privacy laws can also restrict access, particularly where no clear instructions have been left.
Some platforms offer tools to manage accounts after death, such as “legacy contact” options. However, these do not replace a solicitor-drafted Will.
A Will can deal with digital assets in several ways, and a solicitor will be able to help with recommendations. These might include:
- Including a general clause covering digital assets
- Making specific gifts of valuable digital assets, such as cryptocurrency
- Appointing executors with appropriate powers to deal with digital property
- Referring to a separate, regularly updated list of accounts and assets
For security reasons, it is not usually a good idea to include passwords directly in your Will, as it becomes a public document after probate. Instead, a secure digital inventory or a letter can be used to store access information and practical guidance to your digital assets.
Why it’s important to work with a solicitor
Digital assets are a developing area of law, and each person’s online presence is very different. A solicitor can help you identify which digital assets you own, clarify what can be passed on and make sure that your Will gives executors the authority they need to act effectively in the future.
By considering digital assets as part of your estate planning, you can reduce uncertainty, protect valuable online property and make things significantly easier for those you leave behind. So when making or updating your Will, it’s definitely worth taking the time to discuss your digital life as well as your physical one.
Get in touch with our experienced Salisbury and Chippenham solicitors at Batt Broadbent.