There’s no escaping the fact that the digital age has had an impact on virtually all aspects of our personal and professional lives. Examples of digital assets include:
- Digital photos
- Cryptocurrencies (including online gaming credits and NFT’s)
- Documents saved in databases
- Cloud data
- Social media accounts
- Websites and web domains
- E-books
- Emails
- Other online accounts
Many digital assets may only have sentimental value to you, however with the popularity of online influencers, micro businesses and crypto assets, it means an increasing number of individuals have valuable digital assets.
In fact, UK Finance have estimated that the digital assets could represent as much as 10% of the global market by 2030, which is equivalent to a value of between £3 – £4 trillion.
Protecting digital assets after you have died
The digital revolution has developed faster than the law in this area. There are significant difficulties in defining the nature of digital property and the ownership. Whilst there has been recent developments in case law and legislation in respect of digital property, such as that of crypto currency, the question of ownership (and the transfer) of these digital assets can be fraught with complexities.
The reality is we don’t protect our digital assets in the same way as we protect our physical property. Accessing and/or retrieving data from accounts held online after someone’s death is getting progressively more difficult. Your loved ones, for instance, might never be able to recover precious memories stored on your Facebook account. Significant estate value could also be lost when assets held on online exchanges such as SoFi, Coinbase and Trading212 go unknown by the executors.
So what can you do?
If you are the owner of ‘virtual property’ and want to successfully protect your digital assets when you die for beneficiaries and future generations, it is essential that they are taken into account in your Will.
It is often harder to trace and identify digital assets than physical ones, so making a comprehensive list of those assets, their location (e.g. Cloud address, online exchange or physical hardware) and the approximate value, will be invaluable to your executors. You may also wish to notify a trusted family member or friend of how to go about accessing these digital assets.
Our firm can store assets lists, of both physical and digital assets, safely along with original copies of your Will made with us.
It is important to read the terms and conditions of the software and digital platforms you use. Some platforms, such as Apple iCloud may stipulate that your account is non-transferable and that the rights to your platform ID and it’s content will be terminated on death. This could have significant impact if, for instance you use iCloud to store your company documents or data, resulting in a potential loss of value to your business.
By accounting for and protecting your digital assets in good time, you allow those closest to you to retain as much control as possible over them when you die.
In the long run, a bit of digital prudence and foresight could save you and your loved ones time and money. Where digital assets are concerned, there’s a simple rule: decide who you’d like to use or manage them or risk losing them.
For more information on Wills, please contact me Shireen Shabestery on 01625 531 676 or by email at our Wilmslow office click here
