Planning for Digital Assets on Death – A Practical Guide

Without realizing, most individuals will leave some form of digital legacy on their passing. This digital legacy may not be solely comprised of quantifiable financial assets, such as an online bank account, and is often shaped by the virtual information available about a person on death – likely sentimental, and sometimes sensitive, in nature.

Dealing with a loved one’s digital legacy is an important part of the estate administration process; however, it can frequently be challenging to access or delete certain accounts, which understandably creates immense frustration during an already difficult and vulnerable period. A major part of this hurdle are the varying internal policies and procedures of the online service providers and platforms. In fact, some have no guidance at all.

Below are some practical steps that can be taken to help protect one’s digital legacy:

1. Identify

Digital assets play a significant role in the modern estate plan and an individual’s digital presence can include a variety of digital assets, whether sentimental or financial, for instance: email accounts, digital photo libraries, online investments, e-books, social media accounts and domain names. It is essential to sift through and identify key assets and accounts, which should be accessed on death. The need to access could be for a variety of reasons, such as transfer, maintenance, memorialization or deletion.

Any digital assets or accounts that require attention should be listed out and an inventory created. This could, simply, be on a piece of paper stored with the Will or within an accessible medium, such as a Google document shared with loved ones.

• Safeguard access

Once the important digital assets and accounts have been identified, focus must be geared on accessing and preserving them.

Sometimes, an online service provider will have the option to appoint a “legacy contact” (or equivalent) during lifetime. This definition and the associated rights differ between the service providers, but is worth considering. Apple and Google, for example, provide this option.

Passwords for all digital accounts should be maintained on a regular basis, either written out or held within a secure password app – whatever works and is practical, in the circumstances.

As a precautionary measure, it may also be helpful to backup important digital assets, such as documents or photos, to a separate hard drive.

• Coordinate the estate plan

It is essential to ensure that the estate plan reflects an individual’s digital legacy. This could take a variety of forms, including but not limited to one or more of the following:

• Including a “digital assets” clause in the will, allowing the named executor to deal with the individual’s digital assets on death.

• If there is a specific digital asset that should pass to a named individual, consider either including this as a specified gift within the will (legally binding) or within a letter of wishes (not legally binding); however, it is important to note that some digital assets may have restrictions on the transfer of ownership (i.e. iTunes music library).

• Documenting wishes in relation to how the digital assets should be managed or dealt with, which is often included within a letter of wishes (i.e. to memorialize or delete).

• Communicating wishes in relation to an individual’s digital legacy with loved ones and key appointed persons, which is often overlooked.

• Including a “digital assets” power for an attorney, appointed under a Power of Attorney, to deal with any digital assets during lifetime, if needed.

Addressing one’s digital legacy during lifetime is part of a comprehensive estate plan and, by doing so, protects those digital assets, whether they have a monetary or sentimental value, and provides a more streamlined administration process and peace of mind for loved ones.