What happens to my digital assets when I die?

Tuesday 26 October 2021

The world is becoming increasingly digital so it’s no surprise to hear that a recent study by the Office for National Statistics found that, in 2020, 92% of people in the UK were recent internet users. With this in mind, it is important to think about what happens to your digital assets when you die.

Some digital assets may have monetary value, such as:

• Cryptocurrencies
• Paypal accounts
• Drafts of unpublished works by an author

These types of assets will need to be valued as they will form part of your estate for Inheritance Tax purposes. This may be easy for some assets but not others so it is worth seeking specialist advice if you are unsure of the value of something. You will need to let your legal advisor know about such assets so they can be taken into account when drafting your Will and advising on inheritance tax.

Other assets will not have any monetary value but may just need to be transferred, closed or accessed for sentimental value, such as:

• Photos and videos stored on a cloud, mobile, tablet or laptop
• Social media accounts
• Digital subscriptions such as Spotify, Amazon and Netflix
• Gaming accounts

Unfortunately, there is not a uniform policy for how online platforms deal with accounts after someone has died and many providers set their own policies. Our top tips for managing your digital assets are:

1. Think about including a clause in your Will to deal with digital assets.
2. Close inactive accounts so there is not as much to deal with after your death.
3. Read the policies for each of the platforms. Apple, Google and Facebook now allow you to nominate a legacy contact to look after and memorialise your account after you die but other providers do not do this.
4. Back up files on an external hard drive in case your executors cannot access your physical devices or in case a social media account is deactivated. Keep this in a safe place and inform a trusted person (such as your executor) where this is.
5. Do not give out your login details or write them down where someone could find them. It may seem like a good idea to keep a record of usernames and passwords, however, it could lead to an unauthorised party accessing your accounts while you are still alive.

If you need to amend your Will to include your digital assets or have any questions about this please feel free to contact a member of our team today on 0113 207 0000.