Digital Assets in a Will: How to Protect Your Digital Wealth
Just like planning for your physical and financial assets, arranging for what will happen to your digital assets after you die is important. Including them in your will is the best way to make sure your digital legacy is passed on in the way you intended.
What are digital assets?
Digital assets are a broad term referring to a range of online possessions.
● Cryptocurrencies: Digital or virtual currencies, such as Bitcoin, Ethereum, or Ripple stored in digital wallets like CoinSpot.
● Online Financial Accounts: This includes your PayPal, Stripe, or currency transfer platforms.
● Digital Media: Any eBooks, digital music, movies, or digital art you've purchased or created.
● Reward Points: Points or miles accumulated in loyalty programs like airline or credit card reward programs.
● Email Accounts: Personal or business accounts and the correspondence they contain.
● Social Media Accounts: Facebook, Instagram, LinkedIn, TikTok, Twitter, YouTube or any other online platforms.
● Online Storage Accounts: Google Drive, iCloud, or Dropbox which may contain personal photos, videos, and other important digital files.
● Domain Names and Websites: Any domains you own or websites you've built, like online businesses or blogs.
● Digital Collectibles: Virtual items like NFTs (Non-Fungible Tokens), in-game assets or collectibles in virtual worlds.
● Intellectual Property: Copyrighted material, patents, trademarks, or any other forms of intellectual property in digital format.
● Online Retail Accounts: Accounts on e-commerce platforms like eBay or Amazon, including any seller accounts or e-commerce stores you may own.
Essentially, anything that exists digitally and carries some form of value — monetary, sentimental, or function — is considered part of your digital estate.
Why should digital assets be part of your will?
It's important to include specify what is to happen to your digital assets in your will. You should also keep with your will or ensure your executors/family know what digital assets you have, how to access them, and how you'd like them to be managed.
Here's an example; you might have cryptocurrencies stored in a digital wallet. Without mentioning this wallet in your will, your family might not even know it exists. Cryptocurrencies can be hard to trace without the right information, so even if your family knows about the wallet, they won't be able to access it without the right keys or passwords.
It's not only about the financial value, though. Many digital assets carry sentimental value too. Consider digital photos, personal blogs, and social media accounts. These platforms have become our online homes for so many memories and stories.
Including digital assets in your will isn't just about ensuring your loved ones can access these assets; it's also about protecting sensitive information.
Let’s say you have certain digital files or communications that you don’t want to be disclosed after your passing. By clearly outlining in your will who has access to what, you can keep sensitive information confidential and prevent undesired revelations. You should also find out what the policy of the company holding the digital files is for when a customer/member dies. You may be able to give directions as to information of files you want kept confidential directly to the company.
Thus, comprehensive planning for your digital assets in your will isn't just about passing on your digital wealth or sentimental items, but it's also about preserving your privacy, even after death.
No unified law for digital assets after death
Currently, Australia doesn't have a national law regulating digital asset inheritance.
Instead, the terms of service of individual providers come into play, along with traditional succession and property laws.
With this in mind, it is really up to the individual to take the initiative and provide instruction on what should happen to their digital assets in their will.
Essential steps to plan your digital legacy
The idea of organising your digital legacy can seem daunting. You might wonder, where do I even start? We've put together the essential steps to cut through the overwhelm and guide you through the process:
1. Inventory Your Digital Assets
Take stock of your digital assets. This includes everything from online bank accounts, digital wallets, subscriptions, social media profiles, emails, and other digital properties.
2. Nominate a Digital Executor
Consider appointing a digital executor along with your traditional executor. They should be someone you trust with technological proficiency who can manage your digital estate.
3. Safeguard Access Information
A critical part of your digital estate planning involves securely storing the access information for all your digital assets. This includes usernames, passwords, security questions, pin codes, and any other information required to log into your accounts.
A secure way to store this sensitive information is in a digital vault. A digital vault is a secure online storage system, often encrypted, where you can keep all your login credentials and digital records. These vaults are designed to protect your sensitive information from unauthorised access, cyber threats, and data loss.
While storing the information, you should arrange for this digital vault to be accessible to your nominated digital executor after your passing.
4. Detail Your Instructions
Provide clear directions in your will for each digital asset. For instance, should your social media profiles be memorialised or deactivated? Would you like your cryptocurrencies to be transferred or liquidated? Clarify these types of questions in your estate planning.
Get legal guidance
Given the nature of digital assets and the ambiguous laws surrounding them, professional legal advice is recommended. Contact Bradley and Bray Lawyers to discuss your digital estate planning.
This article is general in nature and does not constitute legal advice. If you require legal advice in relation to your personal circumstances, you must formally engage our firm, or another firm to provide legal advice in relation to your matter. Bradley & Bray lawyers takes no responsibility for any use of the information provided in this article.
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