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Living in an age of technology, where the digital world is incorporated more and more into the real world, the law has to keep up. Digital assets have the capability to store, create and transfer wealth, and with that being kept in mind, it is important that individuals can pass along that wealth upon death.
But what actually are digital assets?
Digital assets concern personal property which exist in a digital form, with examples of this being; crypto assets, digital records, social media’s and digital contracts. With these assets existing only digitally, the way they are managed is not through the traditional support of banks or institutions so its important to have your digital assets secure. Around 93% of those that have a Will have not included any digital assets in said Will which could result in the misuse or the loss of those assets, and along with them, (whether it be sentimental or financial) their value. However, you as an individual do not always have the right to leave some digital assets in a will. Some assets are under license, such as books and music, therefore individuals do not necessarily have the rights to pass along those assets in a will.
Although, if you have concerns that family or friends may be able to get access to your social media after you die then have no fear! The terms and conditions of these social media platforms mean that in your will you can request for your accounts to be deleted or memorialised, which can be enacted by your family. This way you can ensure that your digital footprint, embarrassing or not, can be dealt with in a way which satisfies you beyond the grave.
Importantly, the content of your email account can be obtained by relatives or friends to retrieve important communications which in turn can help in financial and legal dealings after your death. Furthermore, its not just necessary for proceedings but also necessary for the sentimental value. This goes for digital assets such as photos, digital diaries, cloud storage etc. By managing your digital assets in your will, clearly and comfortably, ensures that there is at least some emotional relief for those left after your passing.
But what about the management of crypto currency? The relatively new rise of crypto makes it somewhat difficult to navigate when it comes to inheritance. As of December 2018, UK HMRC has declared cryptocurrencies to be a form of ‘property’ which means it is Subjected to inheritance tax. Access to these crypto accounts lies with having the private keys for them, so its important that you safely and securely ensure that your crypto wealth gets passed down to your heirs, otherwise access could be lost forever. As an increasing amount of our wealth (wether financial or sentimental), exists digitally rather than in physical form, its important now more than ever to be knowledgable as to how to protect that wealth, and to preserve it for future generations.
