When most people think about estate planning, they picture their home, savings, investments and personal possessions. However, an increasing number of my clients are surprised to discover that some of their most valuable assets exist only in digital form.
From online bank accounts and cryptocurrency to social media profiles, email accounts and cloud storage, our lives are becoming increasingly digital. Yet many people have never considered “What happens to digital assets after death?”
As one of the areas that probate solicitors are increasingly helping families with, digital assets can create unexpected delays and difficulties if they haven’t been planned for properly. Taking a little time now can make life much easier for your executors and loved ones later.
What Are Digital Assets?
A digital asset is anything you own, control or have access to online. Some have financial value, while others have significant sentimental importance.
Examples include:
- – Online bank and savings accounts
- – Investment platforms
- – Cryptocurrency such as Bitcoin or Ethereum
- – PayPal and other online payment accounts
- – Online shopping accounts with stored credit
- – Premium bonds managed online
- – Social media accounts
- – Email accounts
- – Cloud storage containing family photographs and important documents
- – Digital music, books and films
- – Loyalty points and reward schemes
- – Websites or online businesses
- – Domain names
Many of these assets are easily overlooked because there is no physical paperwork sitting in a filing cabinet.
Why Digital Assets Can Cause Problems During Probate
When someone dies, their executors are responsible for identifying and collecting in the assets that form part of the estate before distributing them in accordance with the Will or the intestacy rules. As I explain to clients, administering an estate often involves collecting assets, paying liabilities and distributing the estate correctly.
Deciding what happens to digital assets after death can complicate this process if nobody knows they exist.
Common issues include:
- – Family members being unaware of online accounts.
- – Nobody knowing usernames or passwords.
- – Two-factor authentication linked to a mobile phone that is no longer accessible.
- – Cryptocurrency wallets becoming permanently inaccessible.
- – Valuable online subscriptions or income streams being overlooked.
- – Difficulties contacting overseas technology companies.
In some cases, digital assets after death can simply be lost forever.
What About Online Banking?
Most banks now provide online and mobile banking services.
Although your executor will eventually be able to deal with your bank accounts after obtaining the appropriate authority during the estate administration, it is still sensible to leave clear records showing:
- – Which banks you use.
- – Any online savings accounts.
- – Investment platforms.
- – Premium Bonds.
- – Regular subscriptions or direct debits.
Your executor should never use your online banking login after your death unless specifically authorised by the provider’s terms. Instead, financial institutions have their own procedures for dealing with bereavements.
Social Media Accounts
Many people are less concerned about the financial value of social media than the emotional impact.
Facebook, Instagram, LinkedIn and other platforms all have different policies regarding what happens after someone dies.
Depending on the platform, accounts may be:
- – Memorialised.
- – Closed permanently.
- – Deleted following a request.
- – Managed by a nominated legacy contact.
Without planning ahead, families often struggle to gain access or make changes.
Cryptocurrency Needs Special Attention
Cryptocurrency is probably one of the biggest modern challenges in estate planning and searching for digital assets after death.
Unlike a traditional bank account, there is often no financial institution able to recover lost access.
If nobody knows:
- – that cryptocurrency exists,
- – where it is held,
- – or how to access the wallet,
the investment could be lost permanently.
For anyone holding cryptocurrency, I strongly recommend ensuring your executors know that it exists and where they can find the information needed to administer it safely. However, you should think carefully about how sensitive access information is stored so that it remains secure during your lifetime.
Should I Include Passwords in My Will?
This is a question I am asked surprisingly often.
Generally, I would advise against including passwords directly within your Will.
There are several reasons:
- – A Will becomes a working legal document after your death.
- – Passwords change regularly.
- – Updating your Will every time a password changes would be impractical.
- – Including sensitive login details in a Will may create unnecessary security risks.
Instead, it is usually better to keep a separate, regularly updated record of important digital accounts and explain to your executors where that record can be found.
Create a Digital Asset Inventory
One of the simplest ways to protect your digital assets after death is to prepare a digital asset inventory.
This doesn’t need to contain every password, but it should include details such as:
- – Online banking providers.
- – Investment accounts.
- – Cryptocurrency holdings.
- – Email accounts.
- – Social media platforms.
- – Cloud storage providers.
- – Important websites or subscriptions.
- – Password manager details, if you use one.
Keep the document somewhere secure and review it regularly.
Why Your Will Still Matters
Although a Will cannot solve every issue surrounding digital assets after death, it remains one of the most important parts of your estate planning.
A professionally drafted Will allows you to decide who will deal with your estate and who will inherit your assets, rather than leaving matters to the intestacy rules. As I often explain to clients, making a professionally drafted Will gives you control over how your assets pass after your death and provides reassurance that your wishes are properly recorded.
As Will writing solicitors Colchester clients trust, I often discuss digital assets as part of wider estate planning to ensure nothing important is overlooked.
How Probate Solicitors Can Help
Modern estates are becoming increasingly complex.
As probate solicitors Colchester families turn to for advice, I regularly help executors identify digital assets after death, navigate estate administration and deal with legal issues arising after someone has died. With over 25 years’ experience in Probate and estate administration, my aim is to reduce errors, avoid unnecessary delays and make what can be a very difficult time as straightforward as possible.
Every family is different, and every estate is different. The earlier digital assets after death are considered, the easier the administration process is likely to be.
Practical Takeaways
- – Make a professionally drafted Will.
- – Prepare a secure inventory of your digital assets.
- – Keep the inventory updated.
- – Tell your executors where important information is stored.
- – Consider what should happen to your social media accounts.
- – If you own cryptocurrency, ensure trusted people know it exists.
- – Review your estate plan regularly as technology changes.
Frequently Asked Questions
Can my family access my email after I die?
Not automatically. Each provider has its own policies, and access may depend on its terms of service, your instructions and the legal authority of your executors.
What happens to cryptocurrency if nobody knows about it?
If your executors cannot identify or access cryptocurrency holdings, they may never become part of your estate, and in some cases the assets could be lost permanently.
Should I leave all my passwords with my Will?
Generally, no. Passwords are frequently changed and should usually be stored separately in a secure location rather than included in your Will.
Can probate solicitors help with digital assets?
Yes. Probate solicitors can help executors identify estate assets, advise on the legal administration of the estate and guide families through issues involving digital property alongside more traditional assets.
Protect Your Digital Assets After Death
Our digital lives continue to grow every year, yet digital estate planning is often overlooked.
Whether it is online banking, cryptocurrency, family photographs stored in the cloud or social media accounts, taking a little time to organise your digital affairs can save your loved ones considerable stress in the future.
A comprehensive Will, together with clear records of your digital assets, can help ensure your estate is administered as smoothly as possible.
Further Advice
If you would like further advice about making or updating your Will, or you’re looking for experienced probate solicitors to help with estate planning or Probate, I would be delighted to help.
I offer a personal, one-to-one service, and every client deals directly with me throughout their matter. I can meet with you in your home, at your workplace across Essex and Suffolk, or online if you are further afield. Through my consultancy with Setfords, you benefit from the reassurance of an SRA-regulated law firm while receiving a personal service tailored to your circumstances. Please get in touch for further advice on digital assets after death, or any other Probate or will-related matter.