Digital assets in Estate Planning: What you need to know
In today’s increasingly digital world, estate planning isn’t just about managing your home, finances, and keepsakes—it’s also about addressing your digital life. From social media profiles and email accounts to cryptocurrency wallets and online businesses, digital assets are now a key part of your estate.
But why are digital assets so important, and what should you include in your will to ensure they’re properly managed after you’re gone? Here’s everything you need to know.
What are digital assets in estate planning?
Digital assets are electronic records and accounts you own or control. These can include:
- Personal accounts: Emails, photos, social media profiles (e.g., Facebook,
Instagram, LinkedIn). - Financial assets: Cryptocurrency (like Bitcoin or Ethereum), online bank
accounts, PayPal. - Subscriptions and memberships: Netflix, Spotify, cloud storage services.
- Business-related assets: Domain names, websites, e-commerce stores, and online
services. - Loyalty programs: Airline miles, hotel rewards, or other points systems.
These assets have both tangible and sentimental value, making them essential to include in your estate plan.
Why include digital assets in your estate plan?
Without proper planning, your loved ones may face significant hurdles:
- Lost value: Inaccessible cryptocurrency wallets or income-generating accounts.
- Emotional distress: Difficulty retrieving family photos, messages, or keepsakes.
- Privacy risks: Hacked or misused accounts left unmanaged.
While there are no specific laws in Australia governing digital asset inheritance, a well-drafted Will with clear provisions can ensure your digital legacy is handled smoothly.
Estate planning and Australia’s evolving digital asset regulation
In recent years the Australian government has been working on introducing a regulatory framework for entities providing access to and managing digital assets for Australians and Australian businesses. These reforms aim to address identified consumer harms while fostering innovation in the use of digital assets and emerging technologies.
This evolving regulatory environment highlights the growing importance of properly managing and protecting digital assets—not just during your lifetime, but also in your estate planning.
What to include in your Will to cover your digital assets
When incorporating digital assets into your estate plan, it’s critical to address several key matters. Here’s what your estate planning should cover:
- Access and management powers:
Specify that your executor has authority to:- Access, manage, modify, or delete accounts.
- Transfer ownership of digital assets to beneficiaries.
- Archive or memorialise social media accounts.
- Passwords and credentials:
Provide secure guidance for accessing login details. While you shouldn’t list passwords in the Will, you can use a password manager and include instructions for its use in your estate planning instructions and booklet. - Business continuity:
Ensure provisions are in place to manage your business, including control of domain names, websites, and related accounts. - Legacy preferences:
Detail how you’d like personal accounts handled, such as:- Deleting or preserving specific accounts.
- Appointing a legacy contact for memorialisation.
- Adaptability for emerging technology:
Include provisions allowing your executor to manage future digital assets and accounts as technology evolves. - Compliance with platform policies:
Many platforms have unique terms of service. Your estate plan should consider these limitations and include strategies for accessing or transferring accounts under such terms.
Case study:
Imagine Jane, a Sydney-based small business owner. She passed away without leaving instructions for her online store or social media accounts. Her family was unable to access the accounts, losing both sentimental content and significant income. A well-prepared estate plan could have provided her loved ones with the tools to manage and benefit from these assets seamlessly.
Steps to protect your digital legacy:
- Take inventory of your assets:
List all your digital assets and their associated accounts in an estate planning booklet for the benefit of your executor, noting any values or sentimental significance. - Update your Will regularly :
Technology evolves quickly—review and update your Will and estate planning booklet and instructions to your executor regularly to capture new accounts or platforms. - Appoint a digital executor:
Choose an executor with technical knowledge to handle digital assets. - Consult an experienced estate planning lawyer:
Work with a dedicated estate planning solicitor with to draft comprehensive and legally enforceable provisions for digital assets.
How Copeland Estates Legal can help
At Copeland Estates Legal, we understand the importance of protecting every aspect of your legacy. Our team will guide you in creating a comprehensive estate plan that covers both traditional and digital assets, ensuring peace of mind for you and your loved ones.
Ready to protect your legacy?
Contact us today to learn more about including digital assets in your estate plan. Let’s ensure your family has access to everything they need when the time comes.
Send us an email at [email protected], give us a call on 1300 034 487 or book in a free 10 minute chat here.
We’ll look after you.