Your Digital Footprint, Your Assets and Your Will

If you’re thinking about writing a Will, you’ll have thought about what you’d like to happen to your property, savings and other assets after you die. But you’ve probably not paid much attention to your ‘digital footprint’ or ‘digital assets’.

Today, humans are consumed by tech. As adults, our daily lives are embedded in the digital landscape, even more so since the COVID-19 pandemic. Indeed, recent statistics show that an estimated 5.3 billion people use the internet worldwide: staggeringly, that’s almost two-thirds of the global population. But what are digital assets, and why must we consider them when making our Wills?

Digital Assets & Legacy

Some digital assets have monetary or practical value, and some have sentimental value. Either way, anyone making their Will should specify what happens to their online accounts and content after they die.

Technically, there is no legal definition for ‘digital assets’, but a digital legacy is likely to include:

Email accounts
Social media accounts
Books, music and audio (such as Kindle, Audible, etc.)
Video streaming and online gaming and accounts
Photos, videos and artwork stored on the cloud
Online services, including utility companies
Online banking accounts, including PayPal
Online accounts to access critical documents, e.g. for insurance, pension policies,
Online shopping accounts and loyalty schemes
Cryptocurrencies and other assets based on blockchain technology

Computers, laptops, tablets and smartphones should be included as they are used to access online accounts and, in some cases, store assets locally on their hard drives.

Digital Inventory

Some practical steps can be taken to ensure digital assets aren’t lost. Writing a simple (and secure) list containing basic details such as the account’s name, website address, username, or account ID is a good start. And keep it up to date.

A note of warning: not all digital assets we regularly access (and think we own) are owned by us. The copyright, licensing, or intellectual property rights for assets such as music and e-books are complex; some digital assets can’t be passed on.

Security

Understandably, online security remains a hot topic, so recording passwords formally in a Will is not sensible. A Will becomes a public record when someone dies, so including online banking details won’t be secure.

Password managers are valuable by recording all online passwords in one place. However, vigilance is recommended. Sharing the master password with the lawyer or chosen Executor is an excellent way to avoid leaving unnecessary burdens or red tape with family.

Many companies have different approaches to how bereaved relatives can access information after death. Facebook, for example, has thought ahead and included a helpful legacy contact section.

On the other hand, others are reluctant to provide relatives with access to data after someone has died, especially if it’s not clear what the deceased person’s wishes are. This can create immediate practical issues. For example, where heating or household appliances have been managed using an App. When the mobile provider is notified of the death, the account is often closed, and the connection is switched off unless the executors open a new account.

Digital Bequests

In the context of your Will, any part of your estate not specifically named becomes part of the ‘residuary’ estate. This includes money, possessions, and digital assets that aren’t named as specific bequests. If you die without leaving a Will, your digital assets and the rest of your estate will be distributed according to the intestacy rules.

This is a quickly evolving area of law that requires careful consideration. However, one thing is sure: leaving express instructions about how digital assets are dealt with after death means that the estate administration and distribution will be more straightforward. Left in the dark, the practicalities of gaining access to online accounts can prove tricky.

Our Advice

Don’t wait to put your digital affairs in order. Having an open discussion with your family is essential. Technology is, and will remain, an integral part of life, and whilst digital assets may not be tangible, they’re undoubtedly valuable.

Consider who you’d like to entrust with details of your digital accounts now to avoid unnecessary complications with probate in the future.

If you have any specific concerns regarding making a Will, estate planning or queries about how your executors will manage your digital assets, contact us today. We’re here to help.

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.