We now live in a time when a significant part of our wealth and personal lives exists online, which means the concept of “assets” extends far beyond property and bank balances when it comes to writing a will. Digital assets have become an important element of many modern estates.
In England, the law has only just begun to recognise certain digital assets as property. The Property (Digital Assets etc.) Bill is currently underway to clarify this, so it’s important to set clear intentions and draft your will carefully.
For high-net-worth individuals and business owners, overlooking digital assets (including cryptocurrency, online business interests, digital art and extensive cloud-stored material) can create complex situations for their executors, and even the loss of considerable value.
In this article, we’ll explain what digital assets are, why they matter in wills, what the legal and practical issues are, and how you (or your advisers) should plan for them.
What are digital assets in a will?
When we talk about “digital assets”, we mean more than just the sentimental photos stored on your phone. When it comes to your estate planning, here are some digital assets you should be considering:
- Online banking, investment and trading accounts.
- Cryptocurrency, digital wallets, tokenised assets and NFTs.
- Email accounts, cloud storage (photos, documents, videos) and digital media.
- Social-media profiles and online identity (LinkedIn, Facebook, Instagram, gaming accounts).
- Domain names, websites, online businesses, digital content portfolios.
- Online shopping, marketplace and payment-platform accounts (e.g. Amazon, PayPal, eBay).
It is common for the digital portfolio of high-net-worth clients to also include business-related online assets (e-commerce platforms, digital real-estate, licensing rights) – so it’s important to view digital assets through a broad lens.
What happens to digital assets after death in the UK?
Digital assets do not disappear when someone dies. They form part of the deceased person’s estate in the same way as physical belongings. However, the way they are accessed, transferred or closed depends on a combination of the law, the deceased’s will, and the terms and conditions of each online service provider.
Without accounting for your digital assets in your will, they may be lost or inaccessible – your executors may never find them. Cryptocurrency may become permanently inaccessible if private keys cannot be found, and your online funds could remain unclaimed because executors were unaware the account existed. Cloud storage will lock people out, wallets can’t be accessed, and social media accounts may be lost.
Beyond value, many digital assets hold emotional importance for you and your family (photo archives, videos, digital correspondence). Not clarifying your wishes leaves you no control over how they’re handled (archived, deleted, or transferred).
Proactively addressing your digital assets within your will and estate plan provides reassurance that your online affairs will be managed in the way you’d want, and it supports your executors or trustees by minimising avoidable complexity or dispute.
How to include digital assets in your will
Here are the key actions you should take to ensure your digital assets are accounted for and taken care of in the event of your death:
1. Create a digital asset inventory
Make a list of all your digital assets, including: service/platform, account type, the nature of the asset (whether it’s financial, sentimental, or a business asset), their approximate value (for taxable assets), and their location (device, cloud, wallet).
Do not place passwords or seed-phrases in the will (the will becomes public via probate). Instead, store them separately, securely and instruct your executors where to find them.
2. Appoint a “digital executor” and assign responsibilities
While UK wills typically appoint executors, you may wish to designate someone (in the will or in a separate letter of wishes) who has specific responsibility for your digital assets – it’s wise to choose someone tech-capable, trustworthy, and familiar with your online affairs.
3. Draft a digital-assets clause in your will
Your will should include wording that authorises your executor to access, manage, transfer or delete your digital assets in accordance with your wishes.
4. Specify how you wish digital assets to be dealt with
For each category, you may want to decide:
- Should the asset be passed on to a beneficiary?
- Should it be closed or deleted?
- Would I want my profile to be memorialised?
- Should business-related digital assets continue operations, be passed over, sold, or wound up?
Including clear instructions helps avoid executors having to guess what you might have wanted, and can help ease a little of the pressure at a difficult time.
5. Review and update your will regularly
Our digital lives are constantly changing – new platforms, new wallets, new services. It’s important to ensure your inventory and instructions are kept up to date as your digital footprint changes and expands. It might be a good idea to review and update your will and separate letter of wishes annually.
6. Consider tax and valuation issues
Digital assets are considered part of your estate, meaning they may need to be valued at the date of death. This is for Inheritance Tax purposes (especially when it comes to cryptocurrency). It’s important that your executors are aware of how to identify and value these assets.
Special considerations for high-net-worth clients
If you are a director, business owner, or entrepreneur with a digital profile, you need to take into consideration:
- Online business interests: If you own digital businesses, websites, SaaS platforms or monetised social accounts, these are digital assets and may also involve IP, subscriptions, or commercial contracts. Make sure they’re considered in your will and broader succession plan. Our corporate and commercial solicitors can assist with this.
- Cryptocurrency and tokenised assets: These are particularly volatile and may have complicated access requirements. It will be especially important to leave explicit instructions for these.
- International elements: If you have accounts/jurisdictions overseas or platforms governed by foreign terms of service, there may be cross-border issues your digital executor will need to be aware of.
- Trusts and asset-protection structures: If any of your digital assets are held via corporate vehicles or trusts, ensure your estate planning integrates correctly with existing structures and your will reflects this.
- IP and digital rights: Domain names, trademarks, original content (e-books, courses, digital art) may enjoy copyright or property rights, and you’ll need to clarify how these are to be treated within your will.
How Scott Bailey can help
At Scott Bailey, we have over 90 years’ experience advising high-net-worth individuals on wills, trusts, estate planning and complex succession matters. Consideration of digital assets has become an increasingly important part of this work. Our team of private client solicitors can help you:
- Identify all your digital assets and ensure they are captured in a comprehensive inventory
- Draft or update your will to include a digital-assets clause, appoint a digital executor and integrate with other estate-planning tools
- Advise on the treatment, valuation and tax implications of digital assets such as cryptocurrency, domain names, online businesses and cloud estates
- Review your existing structures (trusts, companies, asset-holds) and integrate the digital asset planning with your overall succession strategy
- Provide secure storage and protocol for access information for digital assets, and coordinate with executors or trustees to ensure smooth transition
Please contact us for a review of your estate planning to ensure your digital legacy is protected and integrated with your broader wealth planning.
