From Crypto to Cloud: How Digital Assets Fit into Your Estate Plan
Update Your Will to Include Digital Assets . . .
As we live more of our lives online, digital assets have become an essential part of our personal and financial lives. Whether it's a collection of family photos, cryptocurrency, or an email account, the accumulation of significant digital property has become common. Yet, when it comes to estate planning, many Ontarians overlook this critical aspect — leaving these assets unaccounted for in their wills. If you’ve never thought about the digital side of your estate, here are a few key reasons why you ought to include digital assets in your will and carefully consider who you appoint as the executor of these assets (i.e., a “digital executor”).
What Are Digital Assets?
Digital assets are more than just the files you store on your devices. They can include:
Social Media Accounts: Facebook, Instagram, Twitter, LinkedIn, and others.
Digital Photos and Videos: Stored on cloud services, hard drives, or apps.
Cryptocurrency and NFTs: Bitcoin, Ethereum, and other blockchain assets.
Email Accounts: Gmail, Yahoo, and other platforms.
Online Business Accounts: E-commerce sites, blogs, domain names, etc.
Digital Subscriptions: Netflix, Spotify, Amazon, iCloud storage, etc.
Digital Financial Accounts: Bank accounts, investment portfolios, and online payment services like PayPal or Venmo.
Loyalty Point Programs: Airmiles, WestJet rewards, Scene points, and more.
Online Gambling & Sportsbook Accounts: Fanduel, Bet365, DraftKings, BetMGM, and others.
These assets can have financial, sentimental, or even professional value, and many need to be managed after you pass away to ensure your wishes are carried out properly.
Why Digital Assets Matter in Estate Planning
Value and Access: Some digital assets, like cryptocurrency, can be worth substantial amounts of money. However, without access to the right accounts or passwords, your loved ones may struggle to access these assets, or lose them entirely.
Control Over Personal Data: In today's digital age, many people store sensitive personal data online — from financial information to health records to personal correspondence. You’ll want to ensure that this data is handled securely after your death.
Preservation of Memories: Your digital photos, videos, and social media accounts may contain priceless memories. Without clear instructions, these could become lost or inaccessible.
Preventing Digital Debts: Digital assets often come with ongoing subscriptions that, if left active, can accumulate unnecessary costs for your estate. Proper planning ensures these accounts are closed or transferred to the right beneficiary, sparing your loved ones from the hassle of dealing with bills from subscriptions services and other avoidable debts.
Managing Digital Businesses: If you own an online business, domain name, or intellectual property like digital content, it’s essential that these assets are properly transferred or managed.
Appointing an Executor for Your Digital Assets
Traditionally, an executor is responsible for ensuring that your estate is administered according to your wishes. While a traditional executor is responsible for managing the physical assets of your estate, a digital executor focuses on ensuring your digital assets are handled according to your wishes.
The digital executor may be the same person as the traditional executor named in the will, or they may be someone else who has the specific skills and knowledge needed to manage your digital assets, and who you trust to handle highly sensitive information.
Your digital executor must have secure access to your accounts (including usernames, passwords, PINs, etc.) and clear instructions on managing your digital assets—such as whether to delete or memorialize social media, pass on photos, or distribute cryptocurrency—to ensure your wishes are carried out without confusion.
How to Include Digital Assets in Your Will
To ensure your digital assets are properly accounted for, consider the following steps:
List Your Digital Assets: Create a comprehensive list of all your digital assets, including usernames, passwords, and relevant details. Make sure to keep this list in a secure location, such as with a lawyer or in a password book.
Grant Access: In your will, appoint a reliable person as the digital executor who has the legal authority to access your digital assets, and who will be responsible for managing and distributing these assets.
Update Your Will Regularly: Since your digital assets can change over time — new social media accounts, cryptocurrency investments, or online subscriptions — it’s important to update your will regularly to reflect these changes.
At Gillespie Legal, we make sure your digital assets are handled according to your wishes. Our team can help you include these assets in your estate plan and choose the right digital executor. Get in touch today to find out more.