We all use the web daily. The number of online accounts and the value of digital assets are only going to increase. So why do so few people consider what will happen to their digital assets when they die?
The story of Gerald Cotten may ring a bell with you. £100m locked up, with his executors and heirs unable to reach it. Read all about it here.
Think of two categories.
- Financial Information – While not being an asset itself, it leads us to our assets and liabilities such as online bank accounts, savings and investments, PayPal, eBay, and shopping accounts. Or even cryptocurrency.
- Digital Assets – With monetary value in their own right, whether a character in World of Warcraft, or creative work .
You might wonder what the problem is. Your will deals with your physical estate be it property, investments or chattels that we’ll physically pass on.
The Lego goes to my son, the Indian table in the conservatory to my daughter and my air fryer should be buried with me.
Why are digital assets any different to paper-based ones? Executors just gather in the assets of the deceased, settle their liabilities, pay any inheritance tax that is due and then distribute the estate.
There are three problems with digital assets :
- location
- access
- valuation
Most of the internet or digital service providers regard their service as a lifetime service and do not see the concept of a digital legacy at all. It is a common contractual term that when an account becomes permanently inactive it will be deleted. Similarly, your Photos in iCloud will disappear. You could store your Apple ID and password with your Will so that executors can deal with your data. You might be surprised to know that the balance on some dormant accounts could be paid to the Treasury of Luxembourg or indeed to the Malta Lotteries and Gaming Authority.
Further issues arise where the executors or next of kin have to value the digital assets. Provided they can locate them, this often will not be a problem but digital assets in the form of pure gaming characters may require specialist assistance. There are exchanges on which such virtual items can be sold, such as Sony’s Live Gamer Exchange.
As a starting point, create a Legacy Plan that includes the basic details of your digital assets, such as names and web addresses for each account. You can find examples of the most common types of digital assets in the free Digital Wishes pack on the SunLife website at www.sunlife.co.uk/over- 50-life-insurance/digital-legacy-guide
Also consider whether you’ve anything stored on your computer or in iCloud storage such as valuable photographic or other creative work. Draw up your digital asset inventory These may hold sentimental value.
The solicitors at Fergusson Law are experienced and ready to advise you about including your digital assets in your will.
Assets
Your personal email account is a treasure trove of information – messages, contacts, documents, photos, and more. As a priority, include email login details in your digital legacy plan.
Photos
Our photos are now more likely to be stored on a device or in a cloud service than placed in an album – so you don’t want those precious memories to be lost forever. Wherever your most important snaps are stored, make sure that clear instructions are given in your Legacy Plan to access them. Or, better still, use a shared storage option.
Social Media
Facebook and Linkedin are the hardest social media accounts to access after a death. You can’t bequeath a social media account in your will, but you can put in place a plan for someone to manage it when you’re gone, such as to host and show tribute messages.
Digital Media
You generally don’t actually own any digital movies, music or books. Instead, you’re buying a lifetime licence to consume them. Therefore, in reality, they are not part of your digital legacy; just enjoy them as much as possible while you’re still around.
- Apple iPhones, iPads and Mac computers have strong protections for security and privacy. Without an Apple ID all the photos, media and apps and iCloud Data on their system will be impenetrable. You should include an Apple ID , password and two-factor details securely in your digital legacy plan but you can also add a ‘legacy contact’ to your Apple ID. Remember you will also need access to the deceased’s phone, with its screen password.
- Google has a tool for its various services, including Gmail, Google Drive, YouTube and more. It is called Inactive Account Manager . Head to the Inactive Account Manager page, click Start and then follow the instructions
- Microsoft – if you want someone to access your Microsoft account – including Hotmail, OneDrive and LinkedIn then provide the ID, password and two-factor details securely in your digital legacy plan. If you don’t arrange it before you pass on. Microsoft will require a court order to release account information.
- Amazon – it could cover your shopping account, stored photos, and other content. , Amazon’s digital legacy policy is limited. If someone has securely shared their Amazon email account and password with you, you can sign in to their account. You’ll also need access to any additional verification if that is set up, such as the smartphone that receives a code by text. Once an Amazon account is closed, all photos, music and ebooks are deleted
- Facebook – Meta (Facebook and Instagram) You can designate someone as a legacy contact on your account after it’s been memorialised. This person can manage the account, write a pinned post to the profile, respond to new friend requests and change the profile and cover photo. They can also permanently delete your profile.
Digital Legacy Plan
Creating it is primarily about securely recording instructions for accessing digital assets that you want to pass on. Try to combine at least two of these methods
Cloud storage
Most cloud storage services, such as OneDrive, iCloud and Carbonite enable you to create a shared document and then securely share it with other people. You can include instructions in your plan and keep them updated.
It’s easy to back up important photos and other files – and to include your digital legacy plan when you have one – on a USB stick or physical hard drive, and you could drop off a duplicate of this with a family member straight away. Most storage media can be password protected, so you can share how to access it in your cloud service note, or in a letter of wishes. Just make sure that a stored digital legacy plan is updated regularly with the latest details, such as if you change a password or get a new phone.
Letter of wishes
It’s best not to include specific digital assets or services in your will. Alongside ownership issues, digital assets can also often change so you won’t want the expense of frequent will updates. Instead, we advise a ‘letter of wishes ‘ as a separate document that accompanies the will. It isn’t legally binding but it can explain what you want to happen with your digital accounts