We all have a digital life these days. With everything from social lives to shopping taking place online, we can end up with a vast digital footprint.
After you’ve gone, you’ll still exist in digital form. How do you safeguard your digital life after death? What happens to your digital assets?
In this article we’ll cover:
What digital assets are
Why you should include them in your will
How to go about it
What are digital assets?
A digital asset is anything which exists only in a digital format and includes a right of use. If you have a computer or smartphone, you’ll probably have digital assets. For example:
- Photos and videos
- Documents stored on a computer or in the cloud
- Social media accounts
- Websites and blogs
- Emails
Business logos, graphics or digital artwork
Music files
Cryptocurrencies such as bitcoin
Why include digital assets in your will?
Think of your digital assets as personal belongings. You can’t feel or touch them, but these belongings are valuable. What’s more, they can contain important information about you.
Some have financial value. Business logos, online storefronts, monetised social media accounts, digital artwork or written content are good examples.
Other assets — photographs in particular — have sentimental value. If you haven’t left specific instructions, your loved ones can struggle to gain access after your death.
So, how do you plan your digital life after death?
Identify your digital assets
First, you’ll need to make a list of where you keep each of your digital assets.
Write down every location in which you have a digital presence. It could look like this:
Devices — Mobile phone, laptop, desktop, USBs
Social media — Don’t forget any that may be lying dormant
Email — Work and personal accounts
Accounts — Anything that needs a username and password
This brings us on to an important question.
What about passwords?
The next step is counterintuitive. You’ll need to do the one thing we’re always told not to do:
Make a list of your usernames and passwords for each device and account.
Bear in mind that these details should never be included in your will. Once a grant of probate is issued your will becomes a public document. Anyone can access it.
You could store the information digitally using an online `safe box’ or password manager. Alternatively, simply write it down and keep the information in a secure place.
Either way, your executors will need to know where to find it. In a Letter of Wishes, stored with a copy of your will, give your executors instructions on where to locate your usernames and passwords.
You can also include specific instructions for managing your digital afterlife — whether to create a memorial page on social media, for example.
Remember, passwords change, so don’t forget to update the details whenever necessary.
Appoint a digital executor
Like other personal property in your will, digital assets must be valued by your executors for inheritance tax purposes.
Your executor must also carry out your wishes regarding online accounts, documents and media, plus the distribution of your digital assets amongst beneficiaries.
Not everyone is tech-savvy. Rather than placing this responsibility on the shoulders of someone who isn’t technically minded, consider appointing a ‘digital executor’.
Naming digital executors is a relatively new idea, but it’s becoming more popular. Having someone else dealing with online accounts can take the pressure off your other executors.
Declutter your digital life
Going through the steps outlined above gives you a clearer picture of your digital presence in general.
It can be a useful eye-opener. After all, there may be dozens of accounts that you’ve simply forgotten about.
This is a good opportunity to declutter and downsize your digital life. It makes things easier for those you leave behind, and it safeguards your valuable digital assets.
Are you worried about your digital life after death? We provide clear, jargon-free advice to put your mind at rest. Get in touch.