Digital Estate Planning – Leaving Virtual Assets to Beneficiaries

The term 'digital asset' is a broad one. Digital assets may include anything that requires an online login, but can include assets of a high value such as PayPal or Bitcoin accounts. This post considers some issues in relation to leaving digital assets.

The Law Regarding Passing on Digital Content

Digital content purchased from websites such as iTunes and Amazon do not become part of your estate once you die and thus cannot be transferred to anyone else. Although you have paid for the content, you are deemed to be merely leasing it until you die.

This point was highlighted by star Bruce Willis, who considered taking legal action against Apple last year in order that he could pass his digital music collection on to his children after he died.

One of the main issues with digital assets is security, especially for virtual currency where the law is still in its early stages. Experts recommend having a secure Bitcoin wallet or sharing the wallet with a beneficiary. However, this beneficiary would have access to the Bitcoin account during your lifetime.

Furthermore, virtual possessions that hold more of a personal and sentimental value such as Email, Facebook and Twitter accounts may contain photos, messages and comments which you may like your loved ones to hold on to after you pass away. However, without the details to access these accounts, loved ones can be left struggling against red tape to get important information and close the accounts.

Moreover, each company has an individual set of policies relating to the accounts of deceased users. Usually a death certificate is required, however some companies require a grant of probate and a photo ID from the executor in order to close accounts.

It may be best if you make a list of your online accounts with the logins and passwords and keep them in a safety deposit box or with your Will.

There are also online services – such as Deathswitch, AssetLock, SecureSafe and PasswordBox – in which you can store your digital access information, and also leave instructions for your executor on how to handle your online accounts.

Contact us

If you are thinking of contesting, making or updating a Will, then it is important to seek expert legal advice as quickly as possible. Contact Szabo & Associates Solicitors today and speak with one of our specialist solicitors. Call us on (02) 9281-5088 or fill in the contact form to the right of this page.