A legal expert is warning anyone seeking to put their affairs in order that digital assets are an important part of their will – even if they don’t have Bitcoin.
Helen Strong, Lead Solicitor of the Private Client Department at Coventry and Warwickshire law firm Brindley Twist Tafft & James (BTTJ), says many people think digital assets are just NFTs and cryptocurrency.
“During the initial stages of putting a will together we ask about digital assets and most people wave us on saying they don’t have any, thinking they don’t need to worry about them,” she said.
“However, the truth is far more complicated because virtually all of us have an extensive digital footprint that must be taken into account. Professionals and business owners may have business-critical access to data, such as information held in an email account or a password-protected database, document, or trading account.
“It therefore may be wise to nominate a digital executor or manager who can access and manage your digital assets after your passing. You may also wish for a beneficiary to have access to social media accounts, subscription services, and online shopping accounts.”
Helen recommends leaving a list of passwords and usernames in a secure place for the executors – and ensure you tell your executors where to find it – as access issues can cause serious problems and delays. She also advises you to regularly backup your digital assets to the cloud and/or a portable storage device.
If you own cryptocurrency, be careful to leave instructions and security data for your cryptocurrency wallet. Helen adds: “We have all seen the news stories of people who have lost log-in data or personal electronics that held valuable Bitcoin and have no proof of ownership or way of accessing it. Don’t let that happen to your beneficiaries.”
Then there are more personal access issues, such as photos stored digitally on the cloud and whether social media accounts are shut down or memorialised.
“Coping with death is hard enough as it is for trustees and your loved ones, and incorporating digital assets into your post-death planning will remove a potentially upsetting complication or barrier to the estate administration.”
