Digital Assets and Wills: How to Handle Online Accounts in Estate Planning and Disputes
When creating a will, it’s important to remember one word in particular: everything. Even if you have a pretty thorough understanding of what your assets are – bank accounts, savings, property, household goods – it’s likely you have more assets that you didn’t even consider to be assets in the first place. This includes digital assets.
In 2024, all of us have a range of digital assets that will need to be included in the will to avoid disputes. This includes everything from social media accounts, to emails, to websites, to cryptocurrencies. In order to ensure your assets are all accounted for, and the process for your friends and family is streamlined and comfortable, it’s important to handle your online accounts sensitively and with as much thoroughness as any traditional asset.
Proactive Planning
According to a study undertaken in 2024, around 3 in 4 people are likely to experience a will dispute in their lifetime, and an increase in family disputes is ‘extremely likely to increase’. Not only is this emotionally damaging for everyone involved, but the family in question will have to hire will dispute solicitors, which is an added cost that can be avoided if you are proactive, rather than reactive.
By proactive, we’re talking about taking the time to inventory your digital assets and ensure that you include all of them. You might think, for instance, that the Instagram account you haven’t used in over a year is a pointless inclusion in a will that covers the whole of your estate. But digital assets are as much about sentimental value as monetary value. With social media becoming such a big part of everyone’s lives, if you don’t include your accounts, it’s more than likely that there’ll be disputes over how they should be treated and who has the final decision.
Attentive Handling
When it comes to how you handle digital assets, it’s essential that you document all your access information. If you have cryptocurrency, for instance, family members will need a definitive route to access, including securely recorded usernames, passwords, and any two-factor authentication details – a password manager will be particularly useful in this instance. You should also clearly state your wishes for each digital asset. Do you want accounts deleted? Memorialised? Do you want them transferred to a beneficiary? Include clear instructions for what you want done with your accounts, and make sure to provide additional instructions on data privacy.
It’s also important to note that digital assets are governed by various laws and regulations. In the US, for instance, there is the RUFADAA – Revised Uniform Fiduciary Access to Digital Assets Act – which provides a legal framework for managing assets while respecting terms of service agreements. Given the complexity of frameworks like this, it’s important to work with an estate planning attorney who knows how to navigate an extent plan and ensure it’s legally sound. This will help you come away from the process with a robust plan that can be easily followed. Attempting to work it out by yourself, however, could be the first step towards future disputes, and end up making things needlessly difficult for those in charge of your estate.
Images: UnSplash
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In 2024, all of us have a range of digital assets that will need to be included in the will to avoid disputes. This includes everything from social media accounts, to emails, to websites, to cryptocurrencies. In order to ensure your assets are all accounted for, and the process for your friends and family is streamlined and comfortable, it’s important to handle your online accounts sensitively and with as much thoroughness as any traditional asset.
Proactive Planning
According to a study undertaken in 2024, around 3 in 4 people are likely to experience a will dispute in their lifetime, and an increase in family disputes is ‘extremely likely to increase’. Not only is this emotionally damaging for everyone involved, but the family in question will have to hire will dispute solicitors, which is an added cost that can be avoided if you are proactive, rather than reactive.
By proactive, we’re talking about taking the time to inventory your digital assets and ensure that you include all of them. You might think, for instance, that the Instagram account you haven’t used in over a year is a pointless inclusion in a will that covers the whole of your estate. But digital assets are as much about sentimental value as monetary value. With social media becoming such a big part of everyone’s lives, if you don’t include your accounts, it’s more than likely that there’ll be disputes over how they should be treated and who has the final decision.
Attentive Handling
When it comes to how you handle digital assets, it’s essential that you document all your access information. If you have cryptocurrency, for instance, family members will need a definitive route to access, including securely recorded usernames, passwords, and any two-factor authentication details – a password manager will be particularly useful in this instance. You should also clearly state your wishes for each digital asset. Do you want accounts deleted? Memorialised? Do you want them transferred to a beneficiary? Include clear instructions for what you want done with your accounts, and make sure to provide additional instructions on data privacy.
It’s also important to note that digital assets are governed by various laws and regulations. In the US, for instance, there is the RUFADAA – Revised Uniform Fiduciary Access to Digital Assets Act – which provides a legal framework for managing assets while respecting terms of service agreements. Given the complexity of frameworks like this, it’s important to work with an estate planning attorney who knows how to navigate an extent plan and ensure it’s legally sound. This will help you come away from the process with a robust plan that can be easily followed. Attempting to work it out by yourself, however, could be the first step towards future disputes, and end up making things needlessly difficult for those in charge of your estate.
Images: UnSplash
