Digital assets form part of your estate and are treated by the court as any other.
We live in an era where our digital footprint has come to reflect more of our identity than we realise. As technology continues to advance, it is important to account for digital assets in the process of estate planning.
What Are Digital Assets in Estate Planning?
Digital assets are often overlooked and can lead to loss of personal information and photographs that were unable to be retained through ‘digital inheritance’. To know whether it can be passed down in a Will, it must be transferable. Examples include[1]:
- Bitcoin and other forms of cryptocurrency
- Non-fungible tokens (NFTs)
- Domain names
- Online account funds, e.g. PayPal
- Money from an online shopping service, e.g. Amazon, Esty
- Digital music files or picturesFrequent flyer miles from your airline
- Blog content or other online published works
- Monetized video channels earning advertising revenue
- Online investment portfolios
Social media handles and email accounts are characterised as ‘non-transferable’ assets which are not under individual ownership, and only temporarily licenced for personal use. These therefore cannot be ‘inherited’ under a Will, but can be accessed if instructed to beneficiaries in an Estate Plan.
Can you Inherit Digital Assets?
If specified in an official Estate Plan, digital assets that are fully owned and transferable, can be inherited. Digital assets where a beneficiary has not been identified will shift to the Executor of the Will, and eventually, the next-of kin.
How can a Will Lawyer Help?
The incorporation of digital assets into your Will, especially given the increased scope of technology in our daily lives, can be difficult without assistance. A Will Lawyer can deliver personalised advice on integrating digital assets into your estate planning, identifying respective beneficiaries and hence protecting your control over their future.
For any questions or concerns regarding your digital assets or estate planning in general, do not hesitate to contact our Estates Team at Matthews Folbigg Lawyers on 9635 7966 or email us at estates@matthewsfolbigg.com.au.
[1] https://trustandwill.com/learn/digital-inheritance
