An estate plan traditionally outlines the assets you own and how you wish for them to be distributed after your death. A digital estate plan, however, is a modern concept that focuses specifically on your digital assets and their management after your passing. In this blog we set out the factors to consider when making a digital estate plan.
Key Takeaways
- Create a secure inventory of your digital assets, keeping usernames and passwords separate from your Will.
- Include provisions for digital assets in your Will, giving personal representatives the authority to manage and distribute them.
- Review online account terms and access requirements to help ensure your digital assets can be managed lawfully after your death.
What Are Digital Assets?
Digital assets encompass a wide range of online accounts and content, such as:
- social media profiles
- email accounts
- cryptocurrencies
- shopping accounts
- online portfolios.
Also read: Can I Sign and Store My Will Electronically?
How Can Your Digital Assets Be Managed in Your Will?
There are several steps you can take to help ensure your digital assets are managed according to your wishes after your death.
Step 1: Create an Inventory of Your Digital Assets
You should create a comprehensive inventory of your digital assets, including usernames, passwords, and associated accounts. This information should be stored securely, such as in a password manager or a memorandum kept with your Will. However, usernames and passwords should not be included in the Will itself, as it becomes a public document after probate.
Step 2: Include Digital Assets in Your Will
Your Will can include specific provisions for digital assets. This may involve making specific gifts of digital assets to beneficiaries or granting personal representatives (PRs) the authority to access, manage, and distribute these assets. For example, PRs may need express powers to access and transfer cryptocurrencies or manage online accounts. It is also advisable to appoint a “digital executor” who is technologically proficient to handle these assets, though this designation is not legally binding.
Step 3: Review Online Account Terms and Access Requirements
You should review the terms and conditions of your online accounts during your lifetime. Many digital assets, such as iTunes or Kindle content, are licensed rather than owned and may not be transferable upon death. For assets like cryptocurrencies, you should ensure access can be obtained posthumously, such as by using a cryptocurrency custodian or securely storing private keys.
Can My Family or Friends Access My Digital Assets Outside of My Will?
Care should be taken to avoid potential legal problems. Accessing digital accounts without proper authorisation may breach the Computer Misuse Act 1990. PRs should notify service providers of the death and provide necessary documentation, such as the grant of probate, to gain lawful access to accounts.
In summary, addressing digital assets in Wills requires careful planning, including creating an inventory, incorporating specific provisions in the Will, appointing a digital executor, and ensuring compliance with legal and contractual obligations. These steps will help ensure that digital assets are effectively managed and distributed in accordance with the testator’s wishes.
At Howell Jones, Surrey Solicitors, we are firm believers in a step-by-step approach. If you require estate planning or probate advice, please contact our friendly Wills Solicitors in Surrey today.
