How to Include Digital Assets in Your Will in the UK

6 min read

Our lives are increasingly digital. From banking online to sharing family photos on social media, a large part of what we do exists in the digital world. But what happens to these digital assets when we’re no longer around? Just like your home, car, or bank account, your digital assets need to be included in your estate plan. Without proper guidance, your loved ones might not even know these assets exist, let alone how to manage them.

So, where do you start? Let’s break it down step by step, answering some of your most common questions along the way.

What are digital assets?

Digital assets refer to any content or information you store electronically. Examples include:

  • Financial accounts: PayPal, cryptocurrency wallets, and online bank accounts.
  • Social media accounts: Facebook, Instagram, LinkedIn.
  • Cloud storage: Services like Google Drive and Dropbox containing important documents, photos, or videos.
  • Subscription services: Netflix, Amazon Prime, and others.
  • Loyalty points: Airline miles or store reward programs.
  • Intellectual property: Blogs, websites, digital artworks, or e-books.

These assets may hold financial value, sentimental worth, or both. However, without including them in your will, they could become lost or inaccessible after your death.

Why should you include digital assets in your will?

Failing to account for your digital assets can have various consequences:

  • Financial loss: Unclaimed cryptocurrency, PayPal balances, or unutilized subscriptions may be overlooked.
  • Unresolved accounts: Without clear instructions, social media profiles might remain active indefinitely, which can cause confusion or emotional strain for loved ones.
  • Legal hurdles: Your family might face difficulties accessing these assets due to privacy laws or terms of service restrictions.

Including digital assets in your will ensures they are managed according to your wishes, whether that means closing certain accounts, transferring ownership, or preserving sentimental content.

How do I identify my digital assets?

The first step is to create an inventory of all your digital accounts and assets.

Here’s how:

  • Make a comprehensive list: Include account names, usernames, and passwords (stored securely, of course).
  • Group assets by category: Separate personal, financial, and business-related digital assets.
  • Keep it updated: Review your inventory regularly, especially if you open new accounts or discontinue subscriptions.

Who should manage your digital assets?

You’ll need to choose a digital executor—someone who will manage your digital assets after your death. While digital executors aren’t yet legally recognized in the UK, you can still name a person in your will who will carry out your wishes related to your digital assets.

Choose someone tech-savvy who understands how to manage digital files, social media accounts, and cryptocurrencies. They will need to:

  • Access accounts and manage passwords.
  • Close or transfer accounts as per your instructions.
  • Archive important files, photos, and videos.

How to include digital assets in your will

Once you’ve identified your assets and chosen a digital executor, the next step is to include these assets in your will:

  • Specify your assets: List all digital assets and what you want to happen to each one.
  • Provide instructions: For instance, you might request that your social media accounts be memorialized or closed, or that your cryptocurrency be transferred to a beneficiary.
  • Use online tools: Some platforms, like Google and Facebook, allow you to assign a trusted contact to manage your account after death. Be sure to use these tools if available.

Remember, sensitive details like passwords should not be written directly in your will, as it becomes a public document once you pass away. Instead, store this information in a secure, encrypted password manager and leave instructions on how your executor can access it.

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Can digital assets be included in a will in the UK?

Yes, digital assets can be included in a will under UK law. The Property (Digital Assets Etc.) Bill, introduced recently, clarifies the legal status of digital assets, including cryptocurrencies and NFTs. These assets are now considered personal property and can be included in your estate. The new law gives digital assets the same protection as physical property, meaning they can be passed on or managed by an executor after your death.

What happens if digital assets aren’t included in a will?

If you don’t mention digital assets in your will, your loved ones may not be able to access them. Many digital platforms have strict privacy policies that prevent family members from logging into your accounts without prior permission.

For example:

  • Cryptocurrency: If you haven’t shared your keys or access codes, your crypto wallets could remain permanently locked.
  • Social media: Your accounts may remain open, causing confusion or emotional distress.

How to keep your digital assets updated in your will

As our digital lives are constantly changing, it’s essential to review and update your will regularly to reflect any new assets.

Follow these tips to stay current:

  • Review annually: Make a habit of checking your digital inventory at least once a year.
  • Notify your executor: If you open new accounts or make significant changes, keep your executor informed.
  • Stay secure: Use a trusted service to store passwords and ensure your digital asset instructions are accessible to your executor.

How Know Your Dosh can help

Managing your digital assets can seem overwhelming, but Know Your Dosh simplifies the process. Know Your Dosh allows you to securely store all your financial and digital information in one place. This includes everything from bank accounts and investments to digital assets like cryptocurrency and online subscriptions. You can easily share this information with your family or executors, making it much easier for them to handle your affairs when the time comes.

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With Know Your Dosh, not only can you securely manage your digital assets, but you can also simplify difficult conversations about money and estate planning with your loved ones. Protecting your legacy has never been easier.

Want to see how it works? Sign up here.

 

 

 

 

 

 

 

 

 

Disclaimer:

We think you should understand this blog’s strengths and limitations. We’re a financial management platform and aim to provide the best personal finance and lifestyle guidance but can’t guarantee it to be perfect, so please use the information at your discretion.

“Know Your Dosh” can and shall not be held responsible for any outcomes derived from following general guidelines provided as informative blogs.

This info does not constitute financial advice, always research and consult a professional financial advisor before taking any action to ensure it is right for your specific circumstances.

Know Your Dosh blogs often link to other websites, and can’t be held responsible for their content.
Always remember anyone can comment on our posts so it can be very different from our opinion.

 

 

Disclaimer: We think it's important you understand the strengths and limitations of the blog. We're a financial management platform and aim to provide the best personal finance and lifestyle guidance but can't guarantee it to be perfect, so please use the information at your own discretion. “Know Your Dosh” can and shall not be held responsible for any outcomes derived from following general guidelines provided as informative blogs. This info does not constitute financial advice, always do your own research and consult a professional financial advisor before taking any action to ensure it is right for your specific circumstances. Know Your Dosh blogs often link to other websites, and can't be held responsible for their content.