How to include digital assets in your will

In today’s world, our lives are more digital than ever. From social media accounts and online banking to cryptocurrencies and digital subscriptions, many of us have valuable digital assets. But have you ever thought about what happens to them when you pass away?

Without a proper plan in place, your digital assets could become inaccessible or even lost. The good news is that you can include digital assets in your will, giving you control over what happens to them after you’re gone.

In this guide, we’ll explain what digital assets are, how they’re handled after death, and why including them in your will is so important.

What are digital assets?

Digital assets refer to any online or electronic property that holds personal, financial, or sentimental value. These can include:

• Social media accounts (e.g., Facebook, Instagram, LinkedIn)
• Email accounts
• Online banking and investment platforms
• Cryptocurrencies (e.g., Bitcoin, Ethereum)
• Digital photos, videos, or music collections
• Subscriptions (e.g., Netflix, Spotify)
• Domain names or websites

Some digital assets, like cryptocurrencies or domain names, may have monetary value, while others, such as family photos stored in the cloud, carry deep sentimental worth. Regardless of their type, it’s important to include these assets in your estate planning.

Why include digital assets in your will?

When you pass away, managing digital assets can become tricky. Many online accounts are protected by passwords, and companies have strict privacy policies that may prevent your loved ones from accessing them.

Including your digital assets in your will allows you to:

• Give your loved ones clear instructions on how to handle your online accounts.
• Pass on ownership of valuable digital property, such as cryptocurrencies or domain names.
• Protect sentimental items like photos, videos, and personal messages.

Without guidance, your family may struggle to access your accounts or, in some cases, lose them altogether. A will makes it easier for your loved ones to manage these assets and ensures your wishes are followed.

How to include digital assets in your will

1) Make a list of your digital assets

Start by creating a comprehensive list of all your digital assets. Include login details, account numbers, and passwords. While it’s not recommended to include this sensitive information directly in your will, you can reference a separate document that contains these details.

For example, your will might state, “Refer to my secure document for account login details,” and then you can store this document in a safe location. Remember to keep the list updated as your accounts change over time.

2) Name a digital executor

In addition to your main executor, you can appoint a digital executor to handle your online accounts. A digital executor specialises in managing digital assets, including accessing and closing accounts, transferring ownership, and preserving sentimental content.

Be clear about your instructions, especially for assets that require special handling, like cryptocurrencies. If you’re working with a will writer, they can help you include these instructions in your will.

3) Specify how to handle each type of asset

Some digital assets may need to be passed on to specific people, while others should be closed or deleted. For instance:

• Leave instructions for how to transfer ownership of financial assets, like cryptocurrencies or online investments.
• Specify whether you want your social media accounts to be memorialised or deleted.
• Detail who should have access to personal items, like cloud-stored photos or videos.

By being clear about your wishes, you can avoid confusion and potential disputes.

Securing and storing your digital estate plan

While a will outlines your wishes, it’s equally important to keep your estate plan secure. Sensitive information, such as login credentials, should be stored in a safe place, like a password manager or a locked document.

Make sure your executor knows where to find your digital estate plan. Storing your will and related documents in a trusted location ensures everything is accessible when needed.

Common challenges with digital assets

Digital assets present unique challenges in estate planning, and without proper preparation, they can lead to complications:

Accessibility issues

If your family doesn’t know your passwords or account details, accessing your digital assets can be difficult. Some platforms, like cryptocurrency wallets, have no recovery options if the login credentials are lost. Including these assets in your estate plan helps avoid these issues.

Legal hurdles

Privacy laws often prevent companies from sharing account details with anyone other than the account holder, even after death. Without the right permissions, your loved ones may face obstacles when trying to access or manage your accounts.

Risk of disputes

If you don’t leave clear instructions, disputes may arise among family members over valuable or sentimental digital assets. For example, disagreements over who should inherit personal photos or a domain name can cause unnecessary tension. Including digital assets in your will can help prevent these conflicts.

Planning for digital assets abroad

If you own digital assets tied to foreign accounts or platforms, you may need to consider how international laws affect their management.

For instance, if you hold foreign investments in your will, check the regulations in the countries where your accounts are based. A solicitor can advise you on how to handle these assets in line with local laws.

Can a trust help manage digital assets?

In some cases, a trust might be a better option than a will for managing certain digital assets. Trusts can provide ongoing control over valuable assets, like cryptocurrencies or royalties from digital content. They can also simplify the process for beneficiaries, avoiding probate delays.

If you’re unsure whether a will or trust is better for your situation, read our guide on wills and trusts to learn more about their differences.

What happens if a will doesn’t include digital assets?

If you don’t include your digital assets in your will, your family may face several challenges. Without clear instructions, your accounts might remain inaccessible or be handled against your wishes.

In some cases, the absence of a plan could lead to a missing will or lost assets. To avoid this, make sure you document your digital estate and regularly update your will to reflect any changes.

Final thoughts

Digital assets are a growing part of modern life, and it’s important to include them in your estate planning. By creating a will that protects your digital assets, you can simplify things for your loved ones and make sure your wishes are respected.

Work with a professional will writer to create a comprehensive plan, and don’t forget to review and update your estate documents regularly. Whether it’s financial accounts, sentimental items, or social media profiles, your digital assets deserve the same care as your physical property.