Some of our personal possessions are easy to identify and itemise, others are more difficult to. Digital assets fall into the second category as they are usually found on our computers, hard drives, phones, or on the cloud, often hidden behind passwords and security codes.

What are digital assets?

The term digital assets refers to items that exist in a digital format, such as digital documents, digital photos, digital videos, digital ebooks, digital music, digital artwork, and software. The term can also refer to social media accounts, emails, websites and domain names. All of these can have sentimental and financial value.

Some digital assets have a more obvious financial value such as PayPal credit, loyalty points, credits in gambling or gaming accounts, and Cryptocurrencies.

Why is it important to mention digital assets in a Will?

Like with physical assets, you may wish to specify who receives your sentimental digital assets, benefits from them if they are of a considerable value, or manages them (for example in the case of Social Media accounts or blogs).

You can leave instructions with your Will, for example if you would like a social media account or website to be memorialised, or taken down. You may wish for digital assets to be destroyed if they contain information that you wish to remain confidential.

What are an executors responsibilities for digital assets?

It is an executor’s responsibility to value and distribute all assets in an estate, digital or otherwise, before distributing them in accordance with the Will.

The value of digital assets may be hard to determine and experts may need to be consulted. Domain names, websites and monetised social media accounts may even be considered a business asset.

An issue that can arise is difficulty accessing digital assets with your Will. It is possible to leave instructions on how to access your digital accounts with your Will, and some platforms ask for details of a ‘legacy contact’ or ‘inactive account manager’ to cover the eventuality of you being unable to administer your accounts. Without these steps being taken it could be difficult, or even impossible to gain access to your digital assets.

What happens to digital assets if there is no Will?

If a person dies and they have not left a Will then the estate, comprising of digital and physical assets, has to be divided according to intestacy rules.

Gaining access to digital assets could be more difficult and your sentimental, and financially valuable digital assets, may be more difficult to identify, as well as to distribute in a way that would have been your preference.

How to deal with digital assets in a Will

Make a list of all your digital assets and how they can be accessed. Do not include passwords. Passwords and cryptocurrency keys can be stored in a safe deposit box or digital vault (these often have legacy contacts that can be easily added).

Identify which digital assets have a financial value and which have sentimental value, and specify in your Will who you wish to be beneficiaries.

Provide clear instructions about how you wish for social media accounts to be handled.

Ensure your Will is valid (click here to see what makes a Will valid or invalid: https://www.rdcsolicitors.co.uk/latest-news/post/2022/07/18/what-makes-a-will-valid-or-invalid)

If you currently do not have a Will, haven’t updated it for some time, or have digital assets that are not currently included in your Will, then call us on Bingley 01274 723858, Ilkley 01943 601173 or Bradford 01274 735511 for more information or to book an appointment.