How to Pass on Digital Assets Through Your Will
9 minute read
Your online life has value. Make sure it doesn’t get overlooked.
Most of us keep much of our lives online. We store photographs in the cloud, run businesses through websites, hold funds in PayPal or cryptocurrency wallets, and accumulate years of content across social media profiles. Yet when it comes to writing a Will, these digital possessions are often overlooked entirely.
The consequences of that oversight can be serious. Digital assets can hold both sentimental and financial value, and without the right provisions in your Will, they can be lost to your family and beneficiaries forever.
This guide explains what digital assets are, why they matter in estate planning, and the steps you and your Will drafter should take to ensure nothing of value slips through the cracks.
Table of Contents
What Are Digital Assets?
The term “digital asset” covers a surprisingly wide range of things. At its most straightforward, a digital asset is any item that exists in a digital format and to which you have some form of ownership, access or entitlement. The list is far longer than most people expect, and it includes:
- Documents, spreadsheets and presentations stored on a laptop, tablet or phone
- Photographs and videos saved on a device or backed up to cloud services such as iCloud, Google Photos or Dropbox
- Email accounts and the messages and attachments within them
- Social media profiles on platforms such as Facebook, Instagram, LinkedIn or X (formerly Twitter)
- Online bank accounts and savings accounts
- Cryptocurrency holdings and digital wallets — including Bitcoin, Ethereum and other assets
- Domain names and websites
- Online business accounts and e-commerce stores, including seller accounts on platforms such as eBay or Etsy
- Balances held in PayPal, online gambling accounts or reward scheme accounts
- Subscription services and digital licences for software or streaming platforms
- Creative works stored or published digitally, including writing, music, photography and graphic design
- Gaming accounts with in-game currencies, items or achievements that have real-world value
This list represents only the tip of the iceberg. As our lives move increasingly online, the digital dimension of an estate is growing — often without the owner fully realising it.
Why Digital Assets Matter in Your Estate
Some Digital Assets Are Worth Significant Sums
Whilst a Facebook profile or a collection of personal photographs might hold only sentimental value, many digital assets have genuine financial worth. This is particularly true for:
- Cryptocurrency holders, whose wallets may contain assets worth tens or hundreds of thousands of pounds
- Online business owners, who may have built substantial value in a domain name, website or e-commerce store
- Creators and freelancers — authors, photographers, designers and musicians — whose digital files and intellectual property could represent the majority of their estate
If your Will makes no reference to these assets, there is a very real risk that they will simply be lost. An executor who does not know an asset exists cannot take steps to claim it on behalf of your beneficiaries.
Digital Assets Can Disappear Quickly
Unlike physical property, digital assets do not simply sit and wait to be discovered. Many platforms and service providers have their own terms and conditions that affect what happens to an account after the holder dies. In some cases:
- An account may be deleted or suspended after a set period of inactivity
- Ongoing payment conditions may cause an asset to lapse if subscriptions or fees are not maintained
- A platform may require proof of authorisation before granting access to a deceased person’s account
- Licensing terms may restrict or entirely prevent the transfer of certain digital assets to another person
This is particularly important for digital creative works. Many software licences, for example, are issued to an individual and cannot be transferred under any circumstances. The same can apply to certain ebooks, digital music libraries and streaming subscriptions. Understanding the terms and conditions of each platform is an important part of digital estate planning — and ideally something that should be done before your Will is finalised, not after.
The Challenge of Identifying Digital Assets
One of the greatest practical difficulties with digital assets is that they are invisible in a way that physical assets are not. Your executor may walk into your home and immediately see furniture, jewellery and paperwork. They will not, however, automatically know about the cryptocurrency wallet you set up three years ago, the eBay seller account generating income every month, or the cloud storage folder containing thousands of professionally taken photographs.
Executors cannot be expected to simply stumble across digital assets. If an asset is not identified in your Will, or in accompanying documentation, the likelihood is that it will be lost.
This is why it is so important to put your executor in a position where they can identify and locate every digital asset that forms part of your estate. The more precisely assets are described, the better.
Giving Your Executor the Access They Need
Even where an executor is aware of a digital asset, they may still be unable to access it. Online accounts are protected by passwords and two-factor authentication. Cryptocurrency wallets require private keys. Cloud storage may be locked behind an email account that itself requires a password.
Without the right access information, a digital asset can be completely beyond reach — even if everyone knows it exists.
To give your executor the best possible chance of dealing with your digital estate effectively, you should maintain a clear and up-to-date record that includes:
- The name and nature of each digital asset
- The platform or service on which it is held
- The web address or app through which it is accessed
- Your username or email address for each account
- Account numbers or wallet addresses where relevant
- Passwords, PINs and security question answers
- Details of any two-factor authentication devices or backup codes
- Recovery phrases or private keys for cryptocurrency wallets
This information should be kept securely and updated regularly. It should not be written into the Will itself — partly for privacy reasons, and partly because a Will becomes a public document once it is admitted to probate. Instead, it is strongly recommended that your Will is supplemented by a separate, confidential digital asset list, stored somewhere your executor can access it when the time comes.
Creating a Digital Asset List to Support Your Will
A digital asset list is a practical document that sits alongside your Will and gives your executor everything they need to identify and access your digital estate. Think of it as a roadmap to everything you own online.
A well-prepared digital asset list should cover:
- Every significant online account and digital holding
- The location of all relevant devices, including any external hard drives or USB sticks
- Details of cloud storage accounts and what is held within them
- Login credentials for all relevant accounts
- Any relevant terms and conditions you are aware of, particularly where transfer restrictions apply
- Details of any digital assets that are subject to ongoing costs or time-sensitive conditions
This list should be reviewed and updated regularly, particularly after significant life events such as opening a new account, acquiring cryptocurrency, or launching a new online business.
Your Will should make clear that this list exists and should be consulted by your executor, and it should be stored somewhere secure but accessible — for example, with your solicitor or will-drafter, or in a sealed envelope with your original Will.
The Question of Legal Jurisdiction
One issue that is easy to overlook is the fact that many digital assets are held by companies based overseas. A cryptocurrency exchange may be registered in the Cayman Islands. A cloud storage platform may be governed by United States law. A domain name registrar may be based in continental Europe.
This matters because the legal rules that govern what happens to an asset on death may differ depending on where the company holding it is based. In some jurisdictions, assets may be subject to local inheritance laws that differ from those in England and Wales.
Whilst this does not necessarily prevent assets from being passed on, it does mean that your executor may need to take additional steps — and in some cases, legal advice — to deal with the asset properly. Your will-drafter should be made aware of any digital assets that are likely to be held in a different legal jurisdiction so that appropriate provisions can be considered.
How to Actually Pass a Digital Asset to a Beneficiary
Once you have identified your digital assets and ensured your executor can access them, the next question is how you actually want to pass them on. There is no single correct answer, and the best approach will depend on the nature of the asset.
Transferring the Device
In some cases, the simplest solution is to give the physical device on which the assets are stored — whether that is a laptop, an external hard drive, a tablet or a phone — directly to the beneficiary. This can work well when the assets are purely personal, such as a lifetime’s worth of photographs or home videos, and when the beneficiary is technically capable of accessing and managing them.
Transferring the Account or Platform
For assets that are held within an online account — such as a cryptocurrency wallet, a PayPal balance or an eBay seller account — it may be more practical to direct that the account itself is transferred or wound up in a particular way. Here, the platform’s own terms and conditions will be critical. Some platforms have bereavement processes that allow accounts to be transferred or memorialised. Others will simply close the account and release any cash balance upon the provision of a death certificate and the grant of probate.
Where the asset is a domain name or website, particular care is needed. These assets often have commercial value and may require specialist advice to transfer correctly.
Licensing Restrictions to Watch Out For
As noted above, not all digital assets can be legally passed on. Many digital purchases — including ebooks, digital music and some software licences — are licensed to the original purchaser only and cannot be transferred to a third party. Your beneficiaries cannot inherit a right that you never actually owned, so it is important to understand the distinction between owned and licensed digital content before making provision for it in your Will..
Why Professional Will-Drafting Matters More Than Ever
The digital dimension of estate planning is one of the most rapidly evolving areas of Will-drafting, and it is one where the consequences of getting things wrong can be significant. Assets that are overlooked, inaccessible, or subject to transfer restrictions can be lost entirely, sometimes resulting in a considerable financial loss to the people you intended to benefit.
A professionally drafted Will, combined with a carefully prepared digital asset list, provides the best possible protection for your digital estate. It ensures that your executor has clear authority and clear instructions, and that the people you care about receive what you intended them to receive.
If you would like to discuss how your digital assets should be addressed in your Will, we would be happy to help. Our will-drafting service covers all aspects of estate planning in England and Wales, including the increasingly important digital dimension.
Summary: Key Steps for Passing on Digital Assets
- 1. Make a full list of all digital assets you own, including devices, accounts and online holdings
- 2. Check the terms and conditions of each platform to understand any transfer restrictions or time limits
- 3. Provide your executor with detailed access information, including usernames, passwords and account numbers
- 4. Consider whether any assets are held by companies based in a different legal jurisdiction
- 5. Decide how each asset should be passed on, whether via device transfer, account transfer or other means
- 6. Keep your digital asset list up to date and store it somewhere secure alongside your Will
- 7. Work with a professional will-drafter to ensure your Will properly addresses your digital estate
Frequently Asked Questions
Can I leave digital assets to someone in my Will?
Yes. Digital assets that you own — rather than those that are merely licensed to you — can generally be passed on through your Will in England and Wales. However, the process depends on the nature of the asset and the terms and conditions of the platform on which it is held. Some platforms have specific bereavement processes, whilst others may restrict or prevent the transfer of certain assets. It is important to address digital assets specifically in your Will and to provide your executor with the information they need to access and deal with them.
What happens to digital assets if there is no Will?
If you die without a Will (known as dying intestate), the rules of intestacy will determine who inherits your estate, including any digital assets that can be identified and accessed. However, the practical challenge of identifying and accessing digital assets without guidance from their former owner means that many can simply be lost. This makes having a properly drafted Will even more important for those with significant digital holdings.
Can cryptocurrency be included in a Will?
Yes. Cryptocurrency is treated as property in England and Wales and can be left to beneficiaries in a Will. However, accessing a cryptocurrency wallet after death requires either the private key or the recovery phrase associated with the wallet. If this information is not made available to the executor, the cryptocurrency may be permanently inaccessible. It is essential to include details of cryptocurrency holdings and access credentials in a secure digital asset list that your executor can consult.
What is a digital asset list?
A digital asset list is a document that sits alongside your Will and provides your executor with details of all your digital assets, including where they are held and how to access them. It typically includes usernames, passwords, account numbers, private keys and any other information needed to identify and manage your digital estate. The list should be kept separately from your Will (to maintain confidentiality) and updated regularly.
Can I include passwords in my Will?
It is not advisable to include passwords or other sensitive access credentials in your Will itself, because a Will becomes a public document once it enters probate. Instead, this information should be kept in a separate, confidential digital asset list. Your Will can refer to the existence of this list and confirm that your executor is authorised to use it.
What happens to social media accounts when someone dies?
This varies by platform. Facebook, for example, allows accounts to be memorialised or removed upon notification of a death. Instagram offers a similar process. Some platforms will delete an account after a period of inactivity, whilst others require specific legal documentation before taking any action. You can specify in your Will what you would like to happen to your social media accounts, but your executor will still need to follow each platform’s own bereavement process.
Are digital purchases (ebooks, music, films) part of my estate?
In most cases, digital purchases such as ebooks, music downloads and streaming libraries are licensed to you personally rather than owned outright. This means they cannot be passed on through your Will. The licence terminates when you die. This is an important distinction, and it is worth checking the terms and conditions of any digital platform before assuming that your purchases can be inherited.
Disclaimer
This article is intended as general information only and does not constitute legal advice. The information refers to the law of England and Wales. Tax thresholds and legal rules are correct at the time of writing but are subject to change. We recommend that you seek professional advice regarding your own circumstances.
Bio
This article was written by Stephen Rhodes. Stephen was called to the Bar of England and Wales in 1999 and brings over 25 years of in-house experience working with solicitor firms across the Manchester area, with a specialism in Wills and Probate. He now focuses exclusively on will drafting, helping his clients ensure their loved ones are taken care of exactly as they would wish.