The vast majority of us have smart devices, laptops and a multitude of different online accounts. As a result, many of the things that are important for us, both financially and sentimentally, are stored in “the Cloud” or on our own personal devices – which usually cannot be reached without a password or authentication. Given that things stored and kept digitally make up such enormous parts of each of our lives, it is surprising to learn that very few people even consider what will happen to them after we pass away. This article will explain more about what “digital assets” are and which steps you can take to protect them after you die.

What is a Digital Asset?

There is no formal definition of a digital asset, but they are effectively things that have value, can be owned, but are not tangible. This is a broad definition which can encompass many things:

• Bank accounts that are solely online,
• Amazon, eBay, and other internet accounts,
• Photographs stored in the Cloud or on a digital device,
• Music Libraries,
• Unpublished works kept on a device,
• Website domains or blogs,
• Online gaming accounts,
• Email accounts

What Problems Could I Face When Planning for my Digital Assets?

The problem with many online accounts and assets is that you may not actually own them – you may actually effectively be “leasing” the assets until your death. This means that, for example, you have a right to listen to Spotify’s music only during your lifetime; but this right will end on death. This means that if you want to pass on a book or music to a loved one, you need to own a hard copy. Other assets such as domain names, loyalty points and photographs may also be subject to the same restrictions.

It is important to look at the terms and conditions of your accounts to establish how they can be dealt with after your death. For example, Facebook allow the page of a deceased person to be memorialised so that it can still be viewed, while Apple will only allow access if there is a Will or court order in place.

What Should I Do Next?

The most important thing to do is to put all of your digital affairs in order as soon as possible. this means making a list of online accounts, with their usernames and passwords. This list should be updated regularly throughout your life. It is important not to include passwords within your Will as Wills are public documents. Instead, you should include them in a private letter of wishes which accompanies the Will or inform the executor of your Will or a loved one of these passwords or inform them how they can access this list upon your death. This is particularly important in terms of Bitcoin and other cryptocurrencies, which can be passed on to another person so long as that person has the private key.

The next thing to make sure is that you leave clear instructions as to what should be done with your social media and online accounts once you pass away – a digital Will. Please note that these are not legally binding, but rather a statement of wishes. 

Where possible, make hard copies of photos or documents that are important to you, so that they can be physically passed on to your loved ones.

The law in this area is likely to develop further as it takes into account society’s move into the digital age. For now, contact Stella Maris Solicitors LLP for more advice on planning for your digital assets, help with reviewing your Will, or writing your Will for you. Telephone 01793 296118 or email mail@stellamarissolicitorsllp.co.uk.