Australians Wake Up to Importance of Digital Asset Planning

Our lives are increasingly intertwined with technology. From cryptocurrencies to social media accounts, from online banking logins to vast collections of digital photos, these digital assets have become a significant part of our lives — and our estates.

“We’ve noticed a sharp increase in clients asking about digital asset management,” says David Kaplan, Co-founder of the Melbourne-based end of life planning service Willed. “It’s becoming as important as traditional asset planning for many Australians.”

Assuming you do have a Will — slightly over 50% of Aussie adults don’t — how should you incorporate digital assets into your estate plan?

Understanding Digital Assets

When we think about estate planning, it’s easy to focus on physical assets like property, vehicles, and heirlooms. However, digital assets play an increasingly important role in our lives and legacies. These can include:

Tokens

Cryptocurrencies have become a significant investment for many. Unlike traditional bank accounts, crypto wallets require specific access information that, if lost, could render the assets inaccessible forever. Online banking logins and digital payment accounts also fall into this category. You do not want to be like James Howells.

Personal Digital Assets

This category includes your email accounts, social media profiles, and digital photo or video collections. While not always of financial value, these often hold immense sentimental importance for loved ones.

Digital Intellectual Property

For content creators, this could include blogs, YouTube channels, or other online platforms where you’ve built a following or generate income. These assets can continue to provide value even after your passing.

Online Businesses and Domains

Although you’re unlikely to forget to mention an online store that has been your life’s work, you might forget to mention domain names. But these can have a lot of value too!

If you own a website or online business, these digital assets can be significant parts of your estate and may require specific management or transfer instructions.

Incorporating Digital Assets into Your Estate Plan

The first step in managing your digital assets is to create a comprehensive inventory.

Create a Digital Asset Inventory

This should include all your online accounts, digital properties, and important login credentials. However, it’s crucial to store this information securely to protect it from potential cybercriminals.

Kaplan recommends storing logins and notes securely. “At Willed, we recommend using a secure password manager and providing instructions on how your executor can access it, rather than listing passwords directly in estate documents.”

Appoint a Digital Executor

Consider appointing a digital executor who is tech-savvy and trustworthy. This person will be responsible for managing and distributing your digital assets according to your wishes. They should be familiar with technology and capable of navigating various online platforms.

Provide Clear Instructions

For each digital asset, provide clear instructions on how you want it handled.

• Do you want your social media accounts memorialised or deleted?
• Should your cryptocurrency be liquidated or transferred to a specific beneficiary?

Clear guidance will help ensure your wishes are carried out effectively.

Legal Considerations

The legal landscape around digital assets is still evolving. Some service providers have their own policies for handling accounts of deceased users, which may conflict with the instructions in your will.

For example, if you have a large crypto holding on an offshore exchange, how would the executor be able to withdraw funds to Australia if they needed documentation?

Your online presence is an integral part of the story you leave behind. Protect it wisely.

For more information about managing your assets in your Will, go to Willed.com.au.