What Happens to Your Digital Assets When You Pass Away?

In today’s increasingly digital world, many people own assets that exist only online. These can range from social media accounts to cryptocurrencies, to online subscriptions. As we navigate our digital lives, it’s important to consider what happens to these assets after we die.

Digital assets, much like physical assets, require careful management and consideration when it comes to estate planning. If you don’t include these assets in your will, it may cause confusion for your loved ones or delays in managing your estate. In this blog post, we will take you through the steps you should follow to ensure your digital assets are properly accounted for, even after you’re gone.

What Are Digital Assets, and Why Do They Matter?

Digital assets are anything you own or control in the online world. These assets may seem intangible, but they can hold significant value. It’s important to understand what constitutes digital assets so you can include them in your estate planning.

What Digital Assets Include:

• Social Media Accounts: Facebook, Instagram, Twitter, LinkedIn, and other accounts.
• Cryptocurrencies: Bitcoin, Ethereum, and other virtual currencies.
• Email Accounts: Gmail, Yahoo, Outlook, etc.
• Online Banking and Financial Accounts: Any accounts related to online payments or services.
• Cloud Storage and Files: Photos, documents, and other files stored online (e.g., Google Drive, Dropbox).
• Digital Subscriptions and Services: Netflix, Spotify, online memberships, etc.

Understanding these assets is crucial because they may contain sensitive personal information or even financial value. Without proper planning, access to these accounts could be lost, and your family might be left in the dark about how to manage them.

Why Digital Assets Matter

 Digital assets not only carry financial value but can also represent an individual’s personal or professional life. For instance, online portfolios, digital art, and cryptocurrencies may have significant monetary worth.

Additionally, social media accounts can hold sentimental value, representing years of memories, family connections, or professional networking. As these assets accumulate, their management after death becomes just as essential as handling physical possessions.

Key Points:

• Digital assets are not just social media; they include cryptocurrencies, files, and more.
• These assets are often tied to passwords and personal identification information.
• Without a plan, your loved ones may not have the necessary access to your accounts.
• Digital assets may have financial and sentimental value that requires careful consideration.

How to Include Digital Assets in Your Will

One of the most effective ways to ensure your digital assets are managed after death is by including them in your will. This ensures your assets are distributed according to your wishes and can prevent confusion during the probate process.

Steps for Including Digital Assets in Your Will:

Include Access Information in a Secure Location:
While it’s important to provide access details to your executor, it’s equally important to do so securely. Avoid writing down passwords in your will, as it could be seen by others. Use a password manager or encrypted file to store sensitive information securely. This allows your executor to access your accounts without the risk of compromising your security or leaving your passwords exposed.

List Your Digital Assets:
Start by creating a detailed list of your digital assets. Include account names, usernames, and passwords, and any relevant information to help access your accounts. Be clear on how each asset should be managed. Make sure to specify whether you want to have your assets deleted, transferred, or memorialised.

Appoint a Digital Executor:
Consider appointing a digital executor. This person will be responsible for managing your digital estate. They should be trustworthy and tech-savvy enough to navigate online platforms and handle any issues that arise. It’s important that the digital executor has a basic understanding of the various digital assets in your estate, from social media to cryptocurrencies.

Specify How You Want Each Asset Handled:
Be specific about what you want done with each asset. Do you want your social media accounts deleted, or do you want them memorialised? Should your cryptocurrency be liquidated and distributed, or stored securely? In some cases, you may want to have a combination of these actions across different assets.

Key Points:

• List all digital assets clearly in your will.
• Appoint a digital executor to manage your online accounts.
• Specify how you want each asset to be handled.
• Store access information securely, avoiding writing it down in your will.

What Happens to Your Social Media Accounts After Death?

Many people wonder what happens to their social media accounts when they die. Will they remain active? Will they be deleted? Each platform has its own policy, and it’s important to know how these accounts will be managed after your death.

Social Media Platforms and Their Policies:

Facebook:
Facebook allows you to designate a legacy contact who can manage your account after death. This contact can post updates, respond to friend requests, and update your cover photo, but they cannot log in to your account or view private messages. Facebook can also memorialise an account, which locks the account and ensures it remains visible to friends and family.

Instagram:
Instagram offers a similar feature, allowing users to request an account memorialisation. Once an account is memorialised, it can no longer be logged into, but it remains available for people to view. If no legacy contact is set up, the account can be removed by a family member with the correct documentation.

Twitter:
Twitter does not offer a legacy contact feature. Instead, they provide the option for family members to request account deactivation by submitting a request and providing documentation such as a death certificate. If desired, they may also request to memorialise the account, but this is not always possible.

LinkedIn:
LinkedIn accounts can be closed upon request by a family member or representative. LinkedIn also provides an option to memorialise an account, allowing the person’s network to access their professional information. However, it’s important to know that memorialising an account on LinkedIn limits the ability to interact with it, and new connections cannot be made.

It’s essential to decide how you would like your accounts to be handled and include these wishes in your will or with your digital executor. This will make it easier for your family to carry out your wishes.

Key Points:

• Facebook and Instagram allow for legacy contacts or memorialisation.
• Twitter requires family members to request account deactivation.
• LinkedIn accounts can be closed or memorialised upon request.
• Be clear about what you want done with each account in your will.

Tips for Creating a Digital Asset Inventory

Creating a digital asset inventory is an essential step in managing your digital estate. This inventory helps ensure your executor can access all of your online accounts and follow your wishes.

Steps for Creating an Inventory:

• Make a List of Accounts: Start by listing all of your online accounts, including email, social media, banking, and subscriptions. Include usernames, email addresses, and passwords. As your digital life evolves, keep the inventory updated. Consider including special instructions for specific accounts, such as whether a cryptocurrency wallet requires additional steps to access.
  
• Use a Password Manager: To keep your login information secure, use a password manager. These tools store your passwords in an encrypted format and can generate secure passwords for new accounts. Many password managers also allow you to securely share access with a trusted contact (like your digital executor) in case something happens to you.
  
• Regularly Update Your Inventory: As your digital life evolves, so will your inventory. Regularly update your list to ensure it reflects your current digital assets. New accounts and subscriptions often emerge, so a periodic review is essential to avoid leaving any out.
  
• Inform Your Executor: Make sure your executor knows where to find your inventory and how to access it. This can be done through a secure document or password manager. Make sure the person you choose as your digital executor is comfortable using these tools and knows how to access your digital estate.

Key Points:

• Ensure your executor knows how to access your inventory.
• A complete and accurate medical report can expedite the assessment process, leading to a quicker resolution of your claim.
• Keep a comprehensive list of all your digital assets.
• Use a password manager to store login information securely.
• Regularly update your digital asset inventory.

The Importance of Planning for Your Digital Assets

Digital assets are a crucial part of modern life, and it’s essential to consider them when planning your estate. By including digital assets in your will, assigning a digital executor, and creating an inventory, you can ensure that your online legacy is managed according to your wishes.

Taking these steps will not only ease the burden on your loved ones but also ensure that your digital life is handled securely and efficiently. Your digital assets are a reflection of your life, and managing them with care ensures your legacy remains intact.
For more information on how to manage and protect your digital assets when you pass away, contact us today to book a consultation.

Key Points Recap:

• A digital asset inventory is crucial for ensuring all accounts are accounted for.
• Digital assets include social media accounts, cryptocurrencies, files, and more.
• Including digital assets in your will ensures they’re properly managed after death.
• Social media platforms have different policies for posthumous accounts.