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Writer's picturePeter Batchelor

How Are Digital Assets Handled When You Pass Away?

Our lives have become highly dependent on the digital world as we have accounts for almost everything, such as social media, energy bills, banking and even online meeting platforms. Since the pandemic hit, we have changed in ways we never imagined and that includes our reliance on digital technology.


Young south asian family planning their digital assets future

What this means is that we have a digital footprint that reaches far and wide but what happens to this when we pass away?


First and foremost, what is a digital asset? This is information that is in digital form as opposed to having an asset that is physical such as a house or a savings account. These assets will be accessed via an online account using a username and password but whatever the asset might be, what happens to them when you die?


The majority of assets will align with the wishes of your Will and this includes the likes of online bank accounts. However, sentimental assets become a challenge because accessing them can prove difficult as well as transferring them to your executors. There is no clear cut way in which this is handled because account providers do not consider your executors to have legal authority to access your accounts. What this means, is that it is important to think about how your accounts can be accessed after you pass away.


As an example, when we look at Apple and iCloud, both will allow you to add a legacy contact and this is someone who you trust who can access your data after you die. There is no need to provide a Grant of Probate and Apple will provide a unique access key that would need to be presented with the death certificate. Facebook also takes a similar approach as well as Google, so it is clear to see that online platforms are now making it easier to put affairs in order before you pass away.


When it comes to digital assets that have a financial value, commonly, a pass key is required. So, if you own any crypto currency then you have to make sure that the pass key or account details for any apps that you use can be passed to your executors so they can access what they need to.


The simple fact is that we need to think about digital assets in the same way as other assets, particularly if they hold a financial value. The reality is as time goes by, we are going to be doing even more online and it is important to make sure that any digital assets are considered alongside your physical assets. This should give you peace of mind knowing that everything is in place and organised via your Will when the time comes.

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