Updated: Oct 13
In an increasingly digital world, many of us store our most valuable personal and financial information online. Yet estate planning often overlooks digital assets, even though they're an important part of our lives and legacy.
Whether it's your social media accounts, cryptocurrency, online businesses or cloud-stored photos and files, these digital assets can hold significant sentimental and financial value.
We believe your estate plan should reflect your entire legacy, both physical and digital. Here's what you need to know about managing your digital assets as part of your estate planning.
In This Article:
What Are Digital Assets?
Digital assets are any content, account, or file stored in digital form that you own or have the right to access.
Common examples include:
Social media accounts (e.g. Facebook, Instagram, LinkedIn)
Email accounts
Online banking or investment accounts (e.g. PayPal)
Cryptocurrency wallets (e.g. Bitcoin)
Cloud storage (e.g. Google Drive, iCloud, Dropbox)
Domain names or websites
Online shops or stores (e.g. Etsy, Shopify)
Loyalty programs or frequent flyer points
Digital photos, videos or music libraries
Some of these assets may have monetary value, whilst others may be emotionally significant to your loved ones. Regardless of their value, it's important to recognise they are assets.
Why Are Digital Assets Important
Without a clear plan, your digital footprint may become inaccessible or even lost after your death. Here's why it matters to consider your digital assets as part of your estate planning:
Prevent Data Loss Precious memories stored online (like family photos) could be lost if no one can access them.
Protect Financial Interests
Cryptocurrencies and monetised online ventures could remain unclaimed or mismanaged.
Avoid Legal Complications
Without instructions, family members may struggle to access or close digital accounts, sometimes facing strict privacy laws or terms of service limitations.
Guard Your Privacy
Unclear access can expose or misuse personal information.
Common Challenges When Gifting Digital Assets
While digital assets can carry significant financial or sentimental value, gifting them through your Will creates several unique challenges. Understanding these considerations is essential to ensuring your digital legacy is properly handled.
Access And Authentication
Many digital assets are secured with usernames, passwords, passkeys or multi-factor authentication. Without access credentials, even an executor may be unable to retrieve or manage these assets. In some cases, account recovery may be impossible without proper planning.
Jurisdictional Complications
Digital assets may be stored on servers in other states or countries, creating legal and practical issues. Different jurisdictions often have different laws regarding data access, privacy and inheritance, making asset management more complex.
Platform Terms And Conditions
Each digital platform has its own terms of service, which govern what can happen to accounts after the account holder's death. Some providers allow for limited access or legacy planning tools, while others prohibit access entirely unless specific legal conditions are met. Read these documents to ensure they align with your intentions.
Ownership Versus Licensing
One of the most misunderstood and important aspects of digital assets is the distinction between owning content outright and holding a licence to use it.
Many digital products, such as eBooks, music libraries, movie downloads, and software, are governed by end-user licence agreements (EULAs) rather than sale contracts. When an individual purchases such content from providers (e.g. YouTube, Apple, Spotify), they are not acquiring ownership of the digital file or its underlying intellectual property. Instead, they are usually granted a non-transferable personal licence to access and use the content.
This distinction matters in estate planning. A personal license typically ends when the license holder dies and cannot be legally transferred or inherited through a Will. Even if the deceased invested a significant amount of money in digital media libraries, those collections may not transfer to beneficiaries because of the licensing structure.
How To Incorporate Digital Assets Into Your Estate Plan
1. Create A Digital Asset Inventory
Start by listing all your digital assets. Consider how to handle your usernames and other sensitive information to protect your privacy and security during your lifetime while enabling your executor (or other appointed digital caretaker) to manage your digital assets.
We recommend using a secure password manager to store all login credentials. The testator may choose to store a master password in a sealed document or provide instructions to their digital caretaker on how to securely retrieve it.
Never include sensitive information in your Will or Enduring Power of Attorney, as these documents may become publicly accessible and could compromise the security of your accounts.
2. Appoint A Digital Caretaker
Consider nominating a trusted individual (preferably someone with technical proficiency) to help manage your digital assets.
You can do this by appointing them as your executor or by expressly naming them in your Will if you believe your primary executor may not have the necessary digital literacy.
3. Provide Clear Instructions
To protect sensitive information, we generally recommend creating a separate memorandum alongside your Will that details your specific instructions.
This memorandum should outline exactly what you want to happen with each digital asset, who should have access to it, and whether accounts should be deleted, archived, or memorialised.
Without these instructions, your digital caretaker will not know how to handle these assets or whether to retrieve personal memories and/or data.
4. Review Platform Policies
As part of this process, review and consider a company's policies regarding your account after death. For example:
Facebook allows you to choose a Legacy Contact or have your account memorialised
Google provides an Inactive Account Manager who can get access to your account after a period of inactivity
Apple has a Legacy Contact tool to authorise someone to access your data after your death
You should also consider confidentiality concerns, particularly if your digital assets include information belonging to an employer, client or other third party.
5. Update Regularly
As laws surrounding digital assets continue to develop, regularly review and update your estate planning documents to ensure they remain legally effective and aligned with current regulations.
Review your digital asset inventory periodically, and update it whenever you add or close accounts, acquire new digital property (such as cryptocurrency or NFTs), or change access details.
Dealing With NFTs And Intangible Digital Property
Digital assets such as non-fungible tokens (NFTs) and other forms of intangible cultural property are increasingly recognised as part of a person’s estate, provided they have identifiable, transferable value.
If an NFT or similar digital asset is linked to a verifiable owner (typically via a digital wallet), it may be treated like any other form of intangible personal property. As such, it falls under the usual rules of estate administration and distribution under a valid Will.
There are some key considerations:
Proof Of Ownership Is Essential
The digital wallet must be linked to the deceased, with clear evidence of the asset's existence and value.
Access Is Critical
As discussed above, your Executor and/or Digital Caretaker must be able to retrieve private keys, seed phrases, or platform credentials to manage, sell, or transfer the asset. Without access, you may lose the asset permanently.
Always Get Legal And Financial Advice
When dealing with these types of assets, as jurisdictional and technical complexities can arise, particularly when platforms are based overseas or subject to rapidly evolving regulatory frameworks, it is crucial to obtain specialist legal and financial advice to ensure how assets are held, managed and sold align with your goals both during your life and after.
Do Executors Need to Deal With Digital Assets?
Yes!
Under a Will, Executors have a legal duty to identify and manage all estate assets, including digital assets. Ignoring them, whether because of complexity or unfamiliarity, can breach fiduciary duty.
If the deceased held known digital assets such as cryptocurrency, revenue-generating domain names, or other online accounts with financial value, failing to manage or distribute them properly can expose the executor to personal liability.
Executors unsure how to handle digital assets should seek legal or technical advice to ensure they fulfil their responsibilities.
Summary
Digital Assets Are More Than Crypto
Your digital assets include everything from social media accounts, NFTs, domain names, and online subscriptions, which may have financial or sentimental value.
Plan Ahead
Keep a secure, up-to-date list of digital assets and access details. Include your wishes for how accounts and digital assets should be managed.
Include It In Your Estate Plan
Detail digital assets in your Will or in a separate memorandum. Consider appointing a specific digital caretaker if needed.
Be Aware Of Limitations
Even with your wishes, many platforms restrict asset transfers under their terms of service.
Stay Updated
Review your digital asset plan regularly to avoid confusion or data loss later.
We Can Help You Plan Ahead
At RHC Solicitors, our estate planning solicitors can help you take a modern and comprehensive approach to preparing your Will and broader estate plan. We can guide you on the importance of managing your digital assets and put the right measures in place to ensure you and your loved ones don't forget or lose anything.
Disclaimer: This publication is not intended to be comprehensive, nor does it constitute legal advice. We are unable to ensure the information is current, and there is no guarantee in relation to accuracy. You should seek legal or other professional advice before acting or relying on any of the content of this publication. The views and/or opinions expressed in this publication are those of the author and may not necessarily represent the views and/or opinions of RHC Solicitors.
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