Estate Planning and Digital Assets
Digital assets cover online communication tools such as email and social media, cloud storage and libraries, online shopping services, learning apps, device data and even business assets. In an ever-increasing technological society, more people than we think will own digital assets on their death.
The physical devices used to access these assets, such as computers and mobile phones, are not considered digital assets which can be why some people disregard the importance of thinking about what should happen to digital assets on death.
In more recent developments the UK have made strides to have digital assets covered by law. Recent legislation clarifies how digital assets in estates should be identified and stored and recognises such assets as a type of property.
Identifying Digital Assets
First things first, digital assets need to be identified. These types of assets often lack a paper-trail so it is important that you take advice from us on how to help you identify them effectively. We will ask you specifically about any online accounts and digital content you may have. We will explain to you what can actually fall under the category of being a digital asset and to look beyond the device you are using to access these.
What Should Happen On Death?
Once the digital assets have been identified, the next step is to decide what you want to happen on death. In English law, any devices are classed as chattels and are subject to property rights so will form part of your estate. Online accounts are usually subject to contractual rights – these may be able to be inherited but whether the terms can be enforced by the beneficiaries will depend on the specific terms that have been agreed to. Digital records are not subject to property rights and simply form part of the storage of the device they are stored on but it still may be important for your wishes to be noted.
How Can This Be Achieved?
After determining what digital assets you hold and what you may like to do with such assets, it is then important to make sure these wishes are handled in the most appropriate manner.
You may be happy to gift all digital assets to a person or people and if this is the case, we can do a straightforward gift of digital assets in your Will. However, digital assets are likely to carry sentimental and personal value too so you may like to state for example that digital photo albums are to be copied for certain people.
If this is the case, we would recommend you have a letter of wishes but you can also appoint an executor within the Will to specifically deal with the digital assets.
If gifts of digital assets are to be included, it is important that you keep an up-to-date list of what digital assets you have and how to access them.
Without this information, an executor may struggle to access them without assistance from the court. As the Will becomes a public document if a Grant of Probate is obtained, login information or passwords should never be disclosed in the Will document; the finer details should be stored securely elsewhere. An inventory can be a useful way to record this information too.
Appointing A Separate Executor
While it may seem unnecessary to appoint a separate executor to deal solely with digital assets, it has to be said that the best person to administer the overall estate, may not be the best person to handle digital assets.
The increasing complexity in this area of law may mean that someone different is more appropriate; someone with the technical knowledge or willingness to engage with digital matters may be a better suited appointment.
This can be a technically demanding role as the appointed executor may be required to identity and locate the assets, access and secure accounts, transfer or distribute content and comply with terms and privacy laws so time should be taken to appoint the right person.
Taking Your Instructions
If you would like to appoint a separate digital asset executor, then let us know when we are taking your Will instructions. We will ask you about any additional information we may need and also any reasoning for your choices. Where you are a married couple with ‘Mirror Wills’, we will ask from you whether the gift in digital assets is being on your individual deaths or only once both have you have died.
If a specific digital asset is being gifted, we will take down details for this instruction, including how any other digital assets should be dealt with.
Estate Planning Events
By taking a proactive approach the chance of disputes can be reduced, and you can be rest assured that your digital assets will be managed in line with your wishes and values.
To help people understand these issues more clearly, we will be running a series of free Estate Planning seminars locally this June and July. These sessions will explore key elements such as Wills, LPAs and Trusts and explain how they work alongside your financial planning arrangements like inheritance tax, investment management and care fee planning.
Tuesday 23rd June - 2.30pm - 3.30pm - St Peter’s Church, Henleaze
Wednesday 24th June - 10am - 11am - Thornbury URC
Tuesday 30th June - 6pm - 7pm - Stoke Lodge, Stoke Bishop
Wednesday 1st July - 2.30pm - 3.30pm - St Peter’s church, Henleaze
Tuesday 7th July - 10am - 11am - Henleaze Bowling Club
Call 0117 3636 212 or email community@haroldstephens.co.uk to book your place.