The last year has seen a huge proportion of our lives being lived online. From having virtual coffees with friends on Zoom, meeting colleagues/clients on Microsoft Teams to buying that lockdown treat from your favourite online store.
In 2020, an ONS report revealed that 96% of households had internet access, 87% of people had shopped online during the last twelve months and in the last twelve years alone, internet banking had increased by 43%. It is therefore clear that we as a nation are spending more time online and creating online accounts for various reasons. But in amongst the online shopping and virtual catch ups, have you ever wondered what would happen to your online accounts when you die?
What are ‘digital assets’?
When putting in place their Will, people automatically consider their assets to be physical things. These are usually items such as cars, houses, jewellery or money. However, a digital asset is not something physical. A digital asset is defined as something that exists in a digital format and comes with a right to use. Essentially, it includes anything that is stored digitally or online. This can include any online accounts you may have, such as email, social media, banking and shopping, and also includes anything that is stored on your computer, for example, any photographs, videos or documents.
Why should you include digital asset in your will?
Throughout the centuries, solicitors have drafted Wills for individuals dealing with their assets in the ‘real world’. However, it is important to recognise that individual’s estates are now comprised of both online and digital assets.
Digital assets may either have a financial or sentimental value. If a digital asset has a financial value, you may wish to instruct your executor to pay this money to a particular person. These funds form part of your estate and must be distributed to your beneficiaries and disclosed to HMRC. Such accounts include assets like Bitcoin and Paypal or you may have email addresses linked to your business that need to be accessed to continue to run your business.
Alternatively, some digital assets have sentimental value and upon your death you may wish others to benefit from these accounts. This may include accounts such as Spotify, Apple Music or your Kindle account.
Similarly, you may wish your loved ones to gain access to your social media pages to download pictures or videos. Currently, social media platforms have varying stances on what will happen to users accounts upon death. Facebook allows users to nominate a ‘legacy contact’ who can either request that your Facebook page is memorialised or removed. However, Twitter only allows for accounts to be deactivated when executors contact Twitter.
The law surrounding digital assets in the UK is unclear and many online accounts are governed by legislation in other countries. To add further complication, each digital provider has its own policies detailing how their asset can be transferred upon death.
Although there is virtually no legislation in the UK, it is important to consider this aspect to ensure that you have your own digital assets in order. By providing provisions in your Will to deal with digital assets, it could be argued that you have granted authority to your executors to administer these assets and your executors are under a duty to carry out your wishes. They essentially have a right to access and administer your digital assets. If you do not leave instructions in your Will, your executors may not know of all the accounts you hold and will therefore not be able to wind up these assets. In a virtual world, it is evidently crucial that digital assets are no longer overlooked when thinking about your estate.
What can you do to protect your digital assets?
1. Appoint a digital executor
When putting your Will in place, you should consider appointing an individual as a ‘digital executor’. This should be someone who you trust to deal with your online assets and it is recommended that this person is ‘tech savvy’.
In appointing a digital executor, you should detail in your Will exactly how you wish for your online presence to be dealt with after you die.
2. Put them in your Will
Include a specific clause within your Will that deals with any digital assets you may have. This will allow your executors (and/or digital executor) to deal with your online accounts and distribute them as you have instructed.
3. Create a digital inventory
It is important that you keep an updated note of all your online accounts and passwords to ensure that your executors know what online accounts you hold and allow them to gain access to your accounts.
This note can be handwritten and kept in a safe place or, for a fee, you can store these details in an online ‘safe box’. If you opt for the latter option, it is best to check that the safe box is legitimate and it is not recommended that you store all your online accounts in one place online. This is to prevent any potential hackers from obtaining all your details in one place.
Note: A written note should not be included with your Will as your Will becomes a public document upon your death.
4. Check policies
Check the policies of your online accounts. Some companies have provisions within their policies that determines what should happen to a users online account upon death.
Whether you already have a Will or are currently considering putting in place a Will, it is important to consider your digital assets in this ever-growing virtual world and make the right provisions for you.