What Happens to Your Digital Assets After Death?
In today’s world, our lives are becoming more connected online. From email accounts and social media to online banking, photos, and cryptoassets, our digital footprint can be both financially valuable and personally meaningful. Yet many people neglect these assets when planning for the future. Without suitable arrangements, families and executors can encounter significant difficulties in accessing or managing them.
What Counts as a Digital Asset?
Digital assets refer to any type of electronic data stored on devices or online platforms. Typical examples include:
- Email accounts and cloud storage
- Social media profiles (Facebook, Instagram, LinkedIn, X, and others)
- Online banking, investment and shopping accounts
- Music, film and e-book libraries
- Photos and videos stored on personal devices or online services
- Cryptoassets such as cryptocurrencies and NFTs
Because technology develops rapidly, new kinds of digital assets are likely to emerge, making regular estate planning reviews essential.
Why They Matter in Estate Planning
Unlike physical property, which can be locked away, digital assets are protected by passwords, encryption, and multi-factor authentication. Without prior planning, executors or family members may be unable to access them. This can lead to the loss of sentimental items, such as photographs, or even significant financial value when cryptoassets are involved.
Recording and Managing Your Wishes
To simplify matters, it is wise to:
- Create an inventory of digital assets, including login details and access methods, stored securely.
- Nominate a trusted person to handle your digital estate, sometimes called a “digital executor.”
- Set out your intentions clearly, such as whether accounts should be closed, transferred, or memorialised.
- Address cryptoassets specifically, ensuring private keys and wallet details are passed on safely.
These steps can be included in your will (and, for lifetime incapacity only, in a Lasting Power of Attorney). An LPA ends on death; afterwards, your executors act. Some providers will still restrict access regardless of your documents, so plan to use their bereavement tools.
Access Challenges and Jurisdictional Issues
Even with thorough planning, practical challenges can occur. Many online platforms are global, meaning different legal systems might apply depending on where data is stored. However, if the correct credentials are available, your nominated person should generally be able to act in accordance with your wishes. Executors should use the platform’s formal process with proof of authority (e.g., Grant of Probate/Letters of Administration).
How Online Platforms Respond
Various providers adopt different approaches:
- Facebook and Instagram enable accounts to be “memorialised”, and Facebook allows users to appoint a legacy contact.
- LinkedIn, X (Twitter), and Snapchat do not provide memorialisation services, but accounts can usually be closed upon request.
- Google (including YouTube) offers an “Inactive Account Manager” tool that lets users decide who can access their accounts after a period of inactivity.
These options highlight the importance of taking action in your lifetime to establish preferences.
Planning Your Digital Legacy
Planning ahead for your digital assets ensures that your online presence and valuable data are managed according to your wishes. Just as with property or financial accounts, clear instructions can avoid confusion, disputes, or unnecessary loss.
When you carry out estate planning, it is important to consider not just physical possessions but also your digital footprint. Seeking professional legal advice can help you ensure that your wishes are properly documented, and your digital assets are managed with care.