Don’t Forget Your Digital Footprint: Why Digital Assets Matter in Estate Planning
Most of us spend significant time online – banking, shopping, storing photos, managing investments, and staying connected with family and friends. But when it comes to estate planning, digital assets are often overlooked. If you haven’t considered what happens to your online accounts, cryptocurrencies, and digital files after you pass away, you’re not alone – but you should act now.
What Are Digital Assets?
Digital assets include anything you own or control online:
- Online banking and financial accounts
- Cryptocurrency and digital wallets
- Email and social media accounts (Facebook, Instagram, LinkedIn)
- Cloud storage (Google Drive, Dropbox, iCloud)
- Digital photos, videos, and documents
- Online businesses, websites, and domain names
- Streaming service accounts and digital media purchases
- Loyalty programs and frequent flyer points
- Digital subscriptions and online gaming accounts
Why This Matters
Without proper planning, your loved ones may face significant challenges:
Access problems – Most online services have strict privacy and security policies. Without proper authority, your executor may be locked out of accounts, unable to access important documents or financial information.
Financial loss – Cryptocurrency, online investments, and digital business assets can be permanently lost if access details aren’t properly documented and passed on.
Identity theft risks – Dormant accounts can become targets for hackers and identity thieves, potentially causing problems for your estate and family.
Emotional loss – Precious photos, videos, and communications stored digitally may be irretrievable without access credentials.
Practical Steps to Protect Your Digital Estate
- Create a digital asset inventory – List all your online accounts, usernames, and where passwords are stored. Include financial accounts, social media, email, cloud storage, and any online businesses or subscriptions.
- Store access information securely – Use a password manager and ensure your executor knows how to access it, or keep encrypted records in a secure location. Never include passwords directly in your will, as wills become public documents.
- Update your will – Ensure your will specifically addresses digital assets and gives your executor clear authority to access and manage them.
- Consider appointing a digital executor – You might appoint someone tech-savvy to specifically handle digital assets, either as part of your main executor’s role or as a separate appointment.
- Review terms of service – Some platforms have specific policies about what happens to accounts after death. Facebook offers memorialisation, while some services allow you to designate a legacy contact.
- Document your wishes – Be clear about what should happen to each type of digital asset. Some accounts you may want deleted, others preserved, and some may have financial value that should be transferred.
The Legal Framework
NSW doesn’t have specific legislation governing digital assets in estates, which makes proper documentation even more important. Your will and any powers of attorney should include broad language covering digital assets and explicitly authorizing access to electronic records and accounts.
Take Action Now
Digital assets are increasingly valuable – both financially and sentimentally. Including them in your estate planning protects your loved ones from unnecessary stress and ensures nothing important is lost.
If you haven’t reviewed your estate plan recently, or if you’ve acquired significant digital assets since your will was prepared, now is the time to update your arrangements.
Need Help?
At CML Lawyers, we understand the complexities of modern estate planning. We can help ensure your digital assets are properly protected and your loved ones have the access and authority they need.
Contact us on 6342 1000 to discuss updating your will or estate plan to include your digital assets.
This article provides general information only and should not be relied upon as legal advice. For advice specific to your circumstances, please contact CML Lawyers.