When people make a Will, they usually think about their home, savings and personal possessions. However, a significant part of a person’s wealth, memories and important information now exists online.
From email accounts and social media profiles, to online banking, cryptocurrency, subscriptions to music and tv streaming service and photos, digital assets are becoming an important part of modern estate planning.
Despite this, research by Which? found that three-quarters of people have made no plans for what should happen to their digital assets after death.
If these digital assets are not accounted for in a will, they can create unexpected difficulties for family members and executors. At a time when loved ones are already dealing with grief and the practicalities of administering an estate, discovering that important information is locked behind passwords or inaccessible online accounts can add unnecessary stress and delay.
Therefore, understanding your rights and planning ahead can make a significant difference.
What is a digital estate?
A digital estate is the collection of online accounts, digital assets and electronically stored information that a person leaves behind when they die.
This can include:
- Email accounts such as Gmail, Outlook and Proton Mail
- Social media platforms including Facebook, Instagram, LinkedIn, TikTok, X and YouTube
- Online banking and savings accounts
- Subscription services such as Apple, Spotify and Netflix
- Digital photographs and documents stored in the cloud
- Online businesses, websites and domain names
- Cryptocurrency holdings and digital wallets
Some of these assets may have financial value, while others may hold significant sentimental importance for family members.
What happens to digital assets when someone dies?
In England and Wales, digital assets form part of a person’s estate in much the same way as physical assets. However, gaining access to them can be more complicated.
People often assume that they will automatically pass to family members because they had access to them during a person’s lifetime. However, this is not necessarily the case and, strictly speaking, the right to deal with those assets falls to the executors or administrators of the estate.
Even then, access is not always straightforward. Many online accounts are governed by terms of service which can restrict access after death. For example:
- Email providers may refuse to grant access without a court order
- Social media platforms often offer memorialisation rather than full access
- Subscription services may simply terminate accounts upon notification of death
Cryptocurrency can be even more complicated as it may be irretrievable without private keys and digital wallets. If they cannot be located, the assets could be impossible to recover regardless of their value.
In practice, families can face delays, frustration, and in some cases permanent loss of valuable or sentimental data.
The practical challenges for families
We regularly see situations where loved ones cannot locate important information because it was held digitally.
A family may be aware that their loved one managed their finances online but have no idea which banks or savings providers were used. Important documents may be stored in cloud-based systems that nobody can access. Photographs collected over decades may exist solely on password-protected devices or online accounts.
For business owners, the issues can be even more significant. Company email accounts, websites, online payment systems and digital revenue streams may all need immediate attention following a death.
Without proper planning, executors may struggle to fulfil their duties, and beneficiaries may lose out.
How to plan your digital legacy
Planning for digital assets is now an essential part of modern estate planning. Taking simple steps to organise information in advance enables your executors to know what exists, where to find it and how it should be dealt with, and can help ensure your wishes are respected, reducing the burden on those you leave behind.
You should consider:
- Creating an inventory of your digital assets, including accounts, platforms and approximate values
- Keeping a secure record of access details, such as passwords or instructions on where these can be found (without including them directly in a Will)
- Using platform tools, such as legacy contacts or account managers offered by some providers
- Making specific provisions in your Will, giving executors authority to deal with digital assets
- Reviewing assets regularly, particularly where accounts or technologies can change quickly
Including digital assets in your Will
A professionally drafted Will can help ensure that executors have clear authority to deal with digital assets and online accounts as part of the administration process.
While every situation is different, appropriate provisions can provide guidance on how digital assets should be managed, preserved or transferred. This can help reduce uncertainty and avoid unnecessary complications for those responsible for administering your estate.
As our lives become increasingly digital, considering these issues alongside more traditional estate planning is no longer optional, but rather an essential part of protecting your legacy.
How Ison Harrison can help
Digital estates are often overlooked until it is too late. At Ison Harrison, our private client team provides clear, practical advice on all aspects of estate planning and estate administration to help you protect what matters most, both online and offline.
Whether you are updating your Will, acting as an executor, or trying to manage a loved one’s estate, we can guide you through the legal and practical steps involved. Our approach is straightforward and personal, ensuring you feel supported at every stage.
Take the next step
If you would like advice on protecting your digital assets or dealing with an estate, contact our wills and probate team today. A short conversation now can prevent significant difficulties for your family in the future.
Call 0113 284 5000 or email mail@isonharrison.co.uk to arrange a consultation.
