Why your online life should form part of your Will
For many of us, a significant part of our lives now exists online. From internet banking and cryptocurrency to treasured family photographs stored in the cloud, digital assets have become an increasingly important part of modern estate planning. Yet they are often overlooked when preparing a Will.
At NBB Waldrons, our Wills & Probate team regularly advises individuals and families across the West Midlands, Gloucestershire, Worcestershire and beyond on protecting not only their physical assets, but also the digital footprint they leave behind.
David Bayliss, a member of our Wills & Probate team, works closely with clients to ensure their estate planning reflects the realities of modern life. David understands that a carefully prepared Will is about more than distributing wealth. It’s about giving loved ones clarity and avoiding unnecessary stress at an already difficult time.
David explains: “Many people assume their Will covers everything they own, but their online life is often forgotten. Digital assets can have substantial financial, sentimental and practical value, and without proper planning they can become difficult, or even impossible, for loved ones to access. In this piece I’ll cover what constitutes a digital asset in detail”
What are digital assets?
Digital assets cover a broad range of online property and electronically stored information, including:
- Online bank and payment accounts
- Cryptocurrency holdings and digital wallets
- Cloud storage accounts
- Family photographs and videos
- Email accounts
- Online businesses
- Electronically stored business records.
Some have an obvious financial value, while others hold significant sentimental or commercial importance.
As our lives become increasingly digital, professional bodies are now recognising the importance of these assets. The Law Society of England and Wales has highlighted the growing need for solicitors and personal representatives to consider digital assets as part of modern estate administration and succession planning.
Ownership and control: access does not always mean ownership
One of the biggest misconceptions surrounding digital assets is that because they are stored on your device or registered in your name, you automatically own them.
In reality, many online products are licensed rather than owned outright. Streaming services, downloaded media and certain online accounts are often governed by terms and conditions that restrict transfer after death.
Practical access can also present difficulties. Password protection, encryption, two-factor authentication and closed digital ecosystems may prevent executors from locating or administering important assets.
This can create issues involving:
- Contract law
- Intellectual property rights
- Data protection legislation
- Estate administration
- Asset valuation.
For individuals holding cryptocurrency, these considerations become even more important. HM Revenue & Customs recognises cryptoassets as property for tax purposes through its Cryptoassets Manual, reinforcing the need for them to be properly identified and documented within an estate plan.
Legal and evidential risks
Digital records can become important evidence after someone dies.
Emails, text messages, cloud documents and online communications may help establish ownership, authority or intention. However, they can also create confusion where they conflict with formal legal documents or a professionally drafted Will.
An informal email or online message may not override a valid Will, but it could give rise to disputes, delays and additional costs during estate administration.
The legal framework surrounding digital assets continues to evolve. As technology advances and more wealth is held online, the courts and legislators are likely to face increasing challenges around ownership and access.
Executor access: avoiding problems after death
One of the greatest practical difficulties for executors is simply identifying and accessing digital assets.
Without clear instructions, valuable accounts can remain undiscovered or inaccessible. Each platform has its own policies, and some providers may refuse access unless specific legal requirements are met.
Official guidance on dealing with a person’s affairs after death is available through GOV.UK, but increasingly this process extends beyond physical paperwork and bank statements to include online accounts and digital property.
The National Cyber Security Centre (NCSC) also encourages individuals to use secure password management systems and maintain good digital security practices. Keeping an up-to-date and secure record of important accounts can make estate administration significantly easier for those left behind.
How to protect your digital assets in your Will
The best way to minimise problems is through careful planning.
We generally recommend that clients:
- Create a list of their digital assets.
- Record where accounts and assets are held.
- Distinguish between assets they legally own and those they merely license.
- Keep a secure record of usernames, recovery methods and relevant instructions.
- Review these records regularly as circumstances change.
- Ensure their Will has been professionally drafted to reflect both the legal and practical realities of digital estate administration.
Importantly, passwords themselves should usually be stored separately from the Will, as a Will becomes a public document once probate has been granted.
Planning for the future
Digital assets are no longer a niche issue. They are part of everyday life and increasingly form part of the legacy we leave behind.
Whether you hold cryptocurrency, operate an online business, store irreplaceable family photographs in the cloud or simply want your loved ones to be able to access important online accounts, taking professional advice can help avoid unnecessary complications later.
David summarises: “A modern Will should reflect the modern world. Taking the time to consider your digital assets today can save your family significant uncertainty tomorrow.”
If you would like to make a new Will or review an existing one, David Bayliss and the NBB Waldrons Wills & Probate team are here to help. With offices in Merry Hill, Kingswinford, Dudley, Worcester, Walsall, Harborne near Birmingham, Cheltenham and London, we support individuals and families throughout England and Wales with practical, straightforward estate planning advice.
To speak to David or a member of our team, please get in touch on 0333 016 1100 or email lawyers@nbbwaldrons.co.uk
