In estate planning, digital assets refer to a person’s online and electronic records, accounts, and files. These can include a wide range of things such as:
- Online accounts (social media, email, cloud storage, e-commerce accounts like Amazon, PayPal, etc.)
- Cryptocurrency (Bitcoin, Ethereum, etc.)
- Digital media (photos, videos, music, e-books)
- Domain names
- Online business accounts (e.g., eBay, Shopify)
- Intellectual property in digital formats (blogs, e-books, digital art)
Managing these digital assets after someone passes away requires the executor to perform specific tasks. Here’s what an executor typically needs to do:
1. Identify the Digital Assets
The first step is to determine what digital assets exist. This can be challenging if the deceased didn’t keep a detailed list. Ideally, the will or a separate document (like a digital assets inventory) will outline the assets and how to access them. The executor may need to look for clues on the deceased’s devices or in their emails.
2. Gain Access
Many digital assets are protected by passwords, two-factor authentication, or other security measures. The executor may need access to usernames, passwords, and security questions to manage or close accounts. Some digital platforms, like Facebook and Google, offer legacy options for handling accounts upon death, but otherwise, gaining access may require contacting the companies and providing a death certificate and proof of executor status.
3. Follow the Will or Legal Instructions
The deceased may have left instructions in the will about how to handle specific digital assets (e.g., pass on cryptocurrency, delete certain accounts, transfer digital media). The executor should follow these instructions carefully.
4. Manage Financial Digital Assets
Cryptocurrency: If the deceased owned cryptocurrency, the executor will need to access the digital wallets and ensure the assets are either transferred to beneficiaries or liquidated according to the will. Online payment accounts: Platforms like PayPal may have balances that form part of the estate. These accounts often require the executor to provide identification and proof of death before accessing the funds.
5. Close or Memorialise Social Media Accounts
Many social media platforms allow users to specify whether they want their accounts deleted or memorialized after death. The executor may be responsible for fulfilling the deceased’s wishes or ensuring accounts are deactivated.
6. Deal with Intellectual Property
If the deceased owned intellectual property in digital formats (like blogs or digital art), the executor must ensure these assets are managed, protected, or transferred to beneficiaries, especially if they generate ongoing revenue.
7. Protect Digital Privacy
In some cases, digital assets may contain sensitive or personal information (emails, photos, etc.). The executor must be mindful of protecting the deceased’s privacy, especially if these accounts contain private communications or data.
8. Consult with Professionals
Given the complexity and ever-evolving nature of digital assets, it might be necessary for the executor to consult with legal professionals who specialise in digital estate planning or IT experts who can help navigate access to secured accounts or data.
In summary, managing digital assets in a will requires careful identification, gaining appropriate access, and executing the deceased’s wishes while adhering to the platform’s policies. It’s increasingly important for individuals to include digital assets in their estate planning to make this process easier for their executors.