The use of digital assets and online access to assets has grown significantly in recent years – most of us have access to emails, photos stored online and maybe even social media accounts. The value of digital assets can vary, and many people think that they hold sentimental value – it is therefore essential to ensure that you include your digital assets in your will so that you can make certain they are passed on to your beneficiaries.
What are digital assets?
Although there is no set definition of what is and is not a digital asset, they tend to range from tangible assets like phones and laptops to non-tangible assets like your PayPal accounts, cryptocurrency, photos stored online, emails, and social media accounts.
Digital assets can be valuable in a monetary and/or sentimental sense.
Do you need to include digital assets in your will?
If you want to ensure that your digital assets go to the person you would like, it is crucial to include them in your will. If they are not specifically given to a beneficiary, they will remain part of your residuary estate.
Another reason to include digital assets in your will is to ensure that your Executors are aware of them. Many people fail to include them in their will and they are then forgotten about. If you have a digital asset that is valuable to you, you should draw it to your executors' attention to ensure that they are able to access your account to retrieve information and/or close your accounts.
For digital assets with monetary value, your executors will need to have access details to ensure they can verify the assets and establish the value for tax purposes, as your Executors will have to give details of all your assets (including digital assets) when providing this information to HMRC and the Probate Registry when applying for a Grant of Probate.
Keeping an up-to-date record of your online accounts with access details is recommended as there are often difficulties for executors when it comes to accessing digital assets.
Tangible assets like laptops will be considered as part of one's personal effects in your Estate however this does not mean that everything stored on your laptop is automatically included unless specifically given to a beneficiary.
Digital assets such as emails and photos might not be readily accessible to your Executors, therefore if you want these to pass to a specific beneficiary it is recommended to leave instructions as to how to gain access to them.
Social media accounts prove difficult to access following the account holder's death and the requirements vary between providers so it is recommended that you consider this as fulfilling the requirements can be time-consuming.
If you want to leave any of your digital assets to a particular person, you should include instructions in your will (or in a letter with your will).
What happens if you do not include digital assets in your will?
Without a will your digital assets will pass to the person as per the rules of intestacy. There is also a risk of your non-tangible digital assets being overlooked.
At Clapham & Collinge we have a dedicated team of experts who are able to provide you with all the necessary information, support and legal advice relating to claims for provisions for family and dependents. Our legal advice is bespoke, confidential, and designed around you, helping you reach the best outcome.
If you would like to seek advice on Wills, Probate, Lasting Powers of Attorney or any other private client related matter, please contact our dedicated Client Relations team on 01603 693510, or email enquiries@clapham-collinge.co.uk.
This article is provided for general information purposes only and does not constitute legal advice or professional advice.
