In an increasingly digital world, many people now hold valuable and sentimental assets online. From online bank accounts and cryptocurrencies to cloud photo storage, email accounts and social media profiles, digital assets have become an important part of modern estates. However, when someone passes away, these assets are often overlooked or misunderstood during the probate process. At Premier Solicitors, we are seeing a growing number of enquiries about how digital assets are dealt with after death. Executors, beneficiaries and family members alike are often unsure of their rights and responsibilities in this area. In this guide, we explore what digital assets are, how they are treated in probate, and the steps you can take to ensure they are properly managed.
Digital assets refer to any content or records stored electronically, whether online, in the cloud or on physical devices such as computers, tablets and smartphones. These can include both financial and non-financial items. Examples of digital assets include:
- Online bank and investment accounts
- Cryptocurrencies (such as Bitcoin or Ethereum)
- PayPal and other digital wallets
- Email accounts and cloud storage (e.g., Google Drive, iCloud, Dropbox)
- Digital photos, videos and documents
- Social media accounts (such as Facebook, Instagram and Twitter/X)
- Online subscription services (e.g. Netflix, Amazon, Spotify)
- Domain names and websites
- NFTs and digital artwork
- Online gaming accounts with monetary or sentimental value
Some of these assets have obvious financial worth, while others are valuable primarily for personal or sentimental reasons.
When someone dies, their estate includes all of their property, possessions and financial interests, including digital assets. Just like traditional assets such as property and savings, digital assets must be identified, valued, and, where appropriate, passed on to beneficiaries.
However, managing digital assets during probate presents unique challenges. These can include:
1. Lack of access – Executors may not know the deceased’s passwords or login details, making it difficult or impossible to retrieve the assets.
2. Unclear ownership – Some digital accounts are governed by user agreements that do not allow for transfer or access after death.
3. Valuation difficulties – Cryptocurrencies and other digital assets can fluctuate in value or be hard to locate.
4. Data protection and privacy laws – Legal restrictions may prevent access to some accounts, even for Executors.
Without a clear plan in place, valuable digital assets may be lost, unclaimed or left vulnerable to fraud.
Executors have a legal duty to gather all of the deceased’s assets, including digital ones, and administer them in line with the Will or the rules of intestacy. However, digital assets are often more complicated to access and manage than physical ones.
Here are some key steps to handling digital assets during probate:
1. Identifying the Assets
The first step is to establish what digital assets the deceased owned. This may involve checking emails, devices, bank statements and correspondence for evidence of online accounts or subscriptions. If the deceased left a digital inventory or shared their login credentials before death, this will make the process significantly easier.
2. Accessing Accounts
Accessing digital accounts can be difficult. Many service providers have strict policies regarding account access after death and may require a court order or formal proof of probate. Some platforms, such as Google and Facebook, now offer legacy settings that allow users to nominate someone to manage or delete their account upon death.
It is important to note that sharing passwords, even with good intentions, may breach the terms of service of certain platforms. Executors should always proceed carefully and seek legal advice where needed.
3. Valuing Digital Assets
Digital assets with financial value, such as cryptocurrency or online trading accounts, must be accurately valued for probate and inheritance tax purposes. Valuations should reflect the market value at the date of death, and evidence should be retained in case of queries from HMRC.
Non-financial assets, such as digital photos or email accounts, do not need to be valued but should still be considered in terms of sentimental importance.
4. Including Them in the Estate
Once digital assets have been identified and valued, they should be included in the probate application and estate accounts. Executors are responsible for deciding what to do with these assets, whether that involves transferring them to beneficiaries, closing the accounts or selling them where appropriate.
5. Distributing Digital Assets
If the Will contains instructions regarding digital assets, these should be followed. Where the Will is silent, Executors must use their discretion to distribute digital assets fairly and in accordance with the law.
Some digital assets, such as domain names or websites, may be transferred to others, while others, such as social media accounts, may be closed or memorialised.
As digital assets become increasingly valuable and commonplace, it is important for individuals to plan ahead and ensure their digital legacy is protected. Here are a few practical steps to consider:
1. Create a digital assets inventory – List all online accounts, subscriptions and digital holdings, including login details and any backup devices.
2. Use password managers – Secure password management tools can store login credentials and can be accessed by a trusted individual in the event of death.
3. Leave clear instructions – Include specific instructions in your Will or a separate letter of wishes outlining how you would like your digital assets to be handled.
4. Appoint a digital executor – While not a formal legal role in the UK, naming someone to take responsibility for your digital affairs can help avoid confusion.
5. Review terms of service – Understand the rules that apply to each platform or provider, as these vary and can affect whether your digital assets can be passed on.
The law surrounding digital assets is still evolving, and many questions remain about ownership, access rights and data protection. Some providers operate outside the UK and apply their own rules regarding what happens when a user dies. Others may require extensive legal documentation or may not allow account access at all.
Additionally, Executors must be mindful of potential security risks. Digital assets can be vulnerable to hacking, fraud or loss, especially if login details are not stored securely. Careful planning, legal advice, and the use of professional Executors where appropriate can help reduce these risks.
In today’s digital age, managing an estate involves more than just physical property and financial accounts.
Digital assets can carry both financial and emotional value, and should not be ignored during the probate process.
At Premier Solicitors, we help clients plan ahead for the future, ensuring their digital assets are included in their Wills and protected for the benefit of their loved ones.
We also support Executors and families dealing with estates that include digital holdings, offering clear guidance and practical solutions in a rapidly changing area of law.
If you are making a Will, acting as an Executor or concerned about your digital legacy, contact Premier Solicitors today. Our experienced team can help you take the right steps to protect your online assets and ensure they are handled properly during probate.
For more information, please call us on 01234 358 080 or visit our contact page to send an enquiry form.
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