Managing Your Digital Assets: A Crucial Aspect of Estate Planning
- Kylie Cox
- Feb 21
- 3 min read
In an era where much of our lives are lived online, it’s no surprise that our digital footprints outlast us. From photos shared on social media to the subscriptions we manage, our digital lives are filled with memories, data, and even financial value. But what happens to all of this when we pass away?
How can we ensure our loved ones can handle these assets, and what steps can we take to simplify their task?
As Wills, Probate, and Estate Planning specialists, we at Toucan Law often work with families grappling with these issues. Below, we’ll explore what digital assets are, the challenges they pose, and how to plan for them effectively.
What Are Digital Assets?
A digital asset is anything that exists in digital form and is owned and controlled by an individual. Examples include:
Social media profiles.
Online shopping accounts.
Email accounts.
Digital subscriptions.
Cryptocurrency wallets.
Although digital assets have no physical presence, they are just as important as physical belongings. Proper management can prevent headaches and heartache for those left behind. It also reduces the risk of identity theft.
Managing Social Media Accounts After Death with careful Estate Planning
The rules for handling social media accounts vary by platform:
Offers a “memorialisation” feature to preserve the account as a tribute.
Legacy Contacts can manage certain features of the account.
Immediate family can request account deletion with proof of death and relationship.
Allows memorialisation or account removal.
Requires proof of identity and a death certificate for requests.
LinkedIn, X (formerly Twitter), and TikTok
Do not offer memorialisation but allow account closure with proper documentation.
Closing Email Accounts
Email accounts often hold sensitive information and access to other accounts. Providers like Google offer features like an “Inactive Account Manager” to designate someone to manage the account. Without this, family members must provide:
Proof of death.
A government-issued ID.
Relevant estate documents.
Closing email accounts can be a lengthy process, but it is essential to avoid potential misuse or security breaches.
Handling Online Subscriptions
Subscriptions often continue charging automatically unless cancelled. Major platforms like Amazon and Apple have dedicated teams to assist family members in closing or transferring accounts. Apple’s “Legacy Contact” feature allows a designated person to manage the account. Addressing subscriptions promptly ensures the estate isn’t burdened with unnecessary charges.
Managing Cryptocurrency
Cryptocurrency poses unique challenges due to its reliance on private keys for access. Without these keys, assets are irretrievable. To manage cryptocurrency:
Owners should leave clear instructions for accessing wallets.
Executors may need to contact platforms like Coinbase or Blockchain to provide probate documents.
Proactive planning is crucial for securing these assets and avoiding complications.
How to Plan for Digital Assets Estate Planning
Proactive steps can make managing digital assets easier for your loved ones:
Create an Inventory:
List all your digital accounts, including login credentials.
Store this information securely, such as in a password manager.
Assign Legacy Contacts:
Use platform-specific tools to designate trusted individuals for managing your accounts.
Include Digital Assets in Your Will:
Specify how you want digital assets managed or distributed.
Consult a professional such as Toucan Law to ensure your Will reflects current laws.
Plan for Cryptocurrency:
Store private keys in a secure location accessible to your executor.
Why Digital Assets and Estate Planning Matters
Digital assets hold not only financial value but also emotional significance. Photos, emails, and messages are treasured memories, while subscriptions and online accounts can impact the estate’s finances. Proper planning ensures these assets are handled respectfully and efficiently.
How Toucan Law Can Help
At Toucan Law, we understand the growing importance of digital assets in estate planning. We offer:
Guidance on creating a comprehensive digital asset inventory.
Advice on incorporating digital assets into your Will.
Support for executors navigating complex digital estates.
Take Action Today
Don’t leave your loved ones to untangle your digital life. Contact Toucan Law to ensure your digital and physical assets are protected and your legacy is secure.
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