What Happens to Digital Assets in a Will?
- RJM Solicitors
- Jun 7
- 4 min read
Digital assets are increasingly valuable parts of modern estates and should be considered when making a Will. Whether you own cryptocurrency, online investments, social media accounts or digital photographs, proper planning can help ensure your executors can locate and manage these assets after your death.
Key Facts
Digital assets can have financial or sentimental value.
Cryptocurrency and online investments may form part of your estate.
Social media accounts are often governed by provider terms and conditions.
Executors may be unable to access digital accounts without appropriate instructions.
Passwords and private keys should never be written directly into a Will.
Digital asset planning is becoming an essential part of estate planning in Wales and throughout the UK.
What Are Digital Assets?
Digital assets are any assets that exist in electronic form and can hold financial, practical or sentimental value.
Examples include:
Cryptocurrency such as Bitcoin and Ethereum
NFTs and digital collectibles
Online banking and investment accounts
Social media accounts
Email accounts
Cloud storage services
Digital photographs and videos
Online businesses and websites
Domain names
As more aspects of daily life move online, digital assets can represent a significant proportion of a person's estate.
Can Digital Assets Be Included in a Will?
Yes. Digital assets can and should be considered when preparing a Will.
Assets with a financial value, such as cryptocurrency holdings or online investment accounts, can generally pass through your estate in the same way as traditional assets. However, your executors must know that these assets exist and understand how to access them.
A professionally drafted Will can help ensure your digital assets are identified and dealt with appropriately.
How Are Cryptocurrency and Other Digital Investments Passed On?
Cryptocurrency, NFTs and other digital investments usually form part of your residuary estate.
The greatest challenge is often not ownership but access. Without passwords, recovery phrases or private keys, valuable digital assets may be impossible to recover.
For this reason, your Will should:
Refer to the existence of digital assets
Identify where access information is stored
Authorise executors to deal with digital property where appropriate
Passwords and private keys should never be written directly into the Will because a Grant of Probate can become a public document.
Instead, sensitive information should be stored securely and separately.
What Happens to Social Media Accounts After Death?
Social media accounts are often more complicated than financial digital assets.
Most platforms operate under contractual terms and conditions. In many cases, users are granted a licence to use the service rather than ownership of the account itself.
As a result, family members and executors may not automatically gain access after death.
Different platforms have different policies. Some allow accounts to be memorialised, while others may permit closure or limited access following proof of death.
Understanding the provider's policies can help avoid difficulties for loved ones later.
Why Should Passwords and Access Information Be Stored Separately?
Passwords, private keys and recovery phrases are extremely sensitive information.
Including them within a Will creates security risks because probate documents may eventually become publicly accessible.
A safer approach is to maintain a secure digital asset inventory that records:
Account details
Device information
Password locations
Recovery keys
Contact information for service providers
Your Will can then direct executors to the location of this inventory.
How Can You Protect Digital Photographs and Sentimental Files?
Digital photographs, videos and personal documents often hold immense sentimental value.
Unfortunately, these assets can be difficult to recover if family members do not know where they are stored.
To protect these items, consider:
Creating regular backups
Using cloud storage alongside local storage
Maintaining a record of access information
Storing important family photographs separately from social media platforms
This can help ensure cherished memories are preserved for future generations.
When Do You Need to Consider Digital Assets in Your Will?
You should consider digital assets whenever you:
Make your first Will
Update an existing Will
Purchase cryptocurrency
Operate an online business
Store important family photographs digitally
Use cloud-based services extensively
Accumulate online investment accounts
Digital asset planning should form part of every modern estate plan, regardless of age or wealth.
Common Mistakes When Dealing With Digital Assets
Many people overlook digital assets entirely when preparing a Will.
Common mistakes include:
Failing to identify digital assets
Not keeping a record of account access information
Storing passwords within the Will itself
Assuming family members can automatically access online accounts
Forgetting about cryptocurrency wallets and recovery phrases
Relying solely on social media platforms to store important photographs
Proper planning can help avoid unnecessary complications for executors and beneficiaries.
Frequently Asked Questions
Do I need to include cryptocurrency in my Will?
Yes. Cryptocurrency can form part of your estate and should be considered during estate planning. Your executors should be able to identify the assets and locate the information required to access them.
What happens if nobody knows my cryptocurrency password?
Without recovery information or private keys, cryptocurrency may be permanently inaccessible. This can result in significant financial losses for beneficiaries.
Can my family access my social media accounts after I die?
Not always. Access depends on the platform's terms and conditions. Some providers allow memorialisation or account closure, while others restrict access entirely.
Should I put passwords in my Will?
No. Passwords should not be included directly in a Will. Instead, they should be stored securely elsewhere, with the Will directing executors to their location.
What digital assets should I tell my solicitor about?
You should disclose any digital asset with financial, practical or sentimental value, including cryptocurrency, online investments, cloud storage accounts, websites and digital media collections.
Can executors manage digital assets?
Yes, provided they have the legal authority and practical access required to locate and manage the assets.
Safeguarding Your Digital Assets
Digital assets are now an important part of many estates. Whether they consist of cryptocurrency, online accounts or treasured family photographs, planning for these assets within your Will can help ensure they are properly managed and preserved for your loved ones. Taking advice when drafting your Will can help avoid unnecessary complications and protect both financial and sentimental assets.
Contact RJM Solicitors
If you are preparing a Will and would like advice on protecting digital assets, RJM Solicitors can help. Our experienced team can ensure your estate planning reflects modern digital ownership and provides clear guidance for your executors.
Phone: 01685 379 900
