For many of us, life increasingly happens online. Our bank accounts are accessed and managed through online accounts, photos from key events and milestones are stored on phones not in albums, and entire friendships can be built on social media. There have also been changes in the way we earn money over recent years, from online businesses such as e-commerce, selling second hand items, trading in stocks and shares, and even cryptocurrency and NFTs (non-fungible tokens).
So, what happens to all these digital assets and possessions when we die and how do we protect our online legacy, ensuring we can hand our assets down to our family?
At AFG Law, our expert private client solicitors believe that your future planning should be reflective of all your life’s assets, not just your physical properties.
What are digital assets?
Digital assets can cover a wide range of possessions, from online investment accounts to personal emails, from social media accounts to digital photo libraries and supermarket reward points. Some of these assets will have financial value and others sentimental value, which means that they need to be kept in mind when deciding how to distribute your estate after death.
In England and Wales, our digital assets are generally considered to be part of a person’s estate, meaning that executors should be able to deal with them in the same way as physical property. However, in practice it is not that simple as data protection and privacy laws can block companies from handing over account access to relatives, and more online platforms have strict policies against sharing account information.
There is an increasing national awareness in the importance of including digital assets in Wills, but a substantial portion of the population still fails to include them. According to Today’s Wills and Probate, ‘interest in digital assets is growing, with 39% of adults including or intending to include digital legacies in their will, up from 36% last year.’
Forward Planning
Against this backdrop, solicitors recommend taking proactive steps to protect your digital assets before access becomes an issue.
The first step is to create a detailed list of all digital assets – from online bank accounts to subscription services to any social media and email accounts – and keep it securely stored.
The next step is to make it clear what you would want to happen to each account if you can no longer control it yourself – whether due to lack of capacity or after your passing. Information should include details such as whether photos saved to a phone, computer or tablet are shared with family members or deleted, and whether a Facebook account should be deleted or memorialised.
Some online platforms also allow you to nominate a legacy contact who can access your account after you pass away. This means you can name someone, such as your executor, to manage your account, and give them exact instructions on what you want to happen.
These actions mean that you give the people you trust the authority to manage and protect your online legacy and ensure it is looked after in accordance with your wishes.
Google, for example, has a legacy contact provision (known as an Inactive Account Manager), whereby you can nominate someone to access and manage your account after an extended period of inactivity. This can be set up at any time and requires minimal technical expertise as it is part of your account settings on the platform.
When setting up the legacy contact, you can decide what period of inactivity triggers their getting access, and you can name up to ten contacts to have this access. These contacts can then download your data (such as photos, emails and any contacts saved to the account) and can send emails from your account.
Setting up the legacy account manager is as simple as –
- Sign in to your Google account.
- Click on your profile picture.
- Click ‘Manage your Google Account’.
- Click ‘Data & privacy’ from the menu.
- Scroll down to ‘More options’.
- Click ‘Make a plan for your digital legacy’.
- Click on ‘Start’ under ‘Inactive Account Manager’.
- Follow the prompts to choose your legacy contact and set your preferences.
Private client solicitors are now routinely raising digital asset considerations with clients, ensuring they are included in Wills and Lasting Power of Attorney. They can also advice on secure methods to store access information to accounts, such as passwords and encryption keys.
It is also important to remember that technology moves and changes quickly. Review all digital assets and plans for access regularly to ensure they stay up to date with your wishes.
If you do not have a Will or Lasting Power of Attorney in place, then you risk your digital assets being distributed via the rules of intestacy when you pass away. To learn more about the rules of intestacy, click the link below.
Rules of Intestacy Explained Simply – AFG Law
How AFG LAW Can Help
At AFG LAW, our Private Client Department specialize in Powers of Attorney, Wills, and estate planning, helping clients make informed decisions about their future. Whether you need to create a Will, update an existing one, or set up an LPA, AFG LAW is here to help.
Do not leave things to chance – ensure your loved ones are protected and your wishes are honoured. Call our expert, compassionate, Private Client team today on 01204 377600 or email privateclientdept@afglaw.co.uk.