Estate planning today goes beyond real estate, bank accounts, and personal belongings. A growing part of your legacy now lives online. From email accounts and cloud storage to digital currencies and social media profiles, your digital assets are real, valuable, and often overlooked in traditional estate plans. If you do not include these assets in your will or legal documents, your family may face challenges accessing or managing them when the time comes.
In British Columbia, estate laws are evolving to recognize the importance of digital property. Planning ahead allows you to stay in control, reduce complications, and help your executor carry out your wishes. Understanding what digital assets are and how to include them in your estate planning is an essential part of protecting your digital legacy.
What Are Digital Assets?
Digital assets are any electronic records or accounts that you own or control. These can include both personal and financial items. Some assets may hold monetary value, while others are sentimental or practical in nature.
Examples of common digital assets include:
- Email accounts such as Gmail or Outlook
- Online photo albums or videos stored in the cloud
- Social media profiles like Facebook, Instagram, or LinkedIn
- Subscription services such as Netflix, Spotify, or Dropbox
- Online shopping accounts with stored payment methods
- Digital wallets containing cryptocurrency or NFTs
- PayPal, Stripe, or other digital payment services
- Personal blogs or monetized content platforms
- Domain names and websites
- Files stored on devices or in online storage
Some digital assets are linked to personal identity or legacy, while others involve real financial holdings. Both categories require attention during estate planning.
Why Digital Assets Matter in Estate Planning
Digital assets are often protected by passwords, encryption, or two-factor authentication. Without clear instructions or access credentials, even a legally appointed executor may not be able to recover these assets. In some cases, the terms of service for online platforms prevent anyone other than the original user from accessing an account, even with a death certificate.
Failing to plan for digital assets can result in the loss of valuable or meaningful content. It can also expose your estate to risks. Unattended accounts may become targets for fraud, or they may accumulate charges if subscriptions continue running. Family members may also lose access to important financial data or sentimental content that has no backup elsewhere.
Including digital assets in your estate plan provides clarity, prevents delays, and reduces the emotional and financial burden on your loved ones.
Steps to Include Digital Assets in Your Estate Plan
Including digital assets in your estate plan does not need to be complicated. The most important steps are awareness, documentation, legal authority, and secure access. Taking the time to organize these details now can make a significant difference later.
1. Create a Digital Asset Inventory
Start by listing all your digital accounts, services, and stored content. For each item, note the platform name, your username, the type of content or value it holds, and whether it is personal, financial, or business related.
Avoid listing passwords directly in your will. Instead, keep login information in a secure password manager or write it down and store it in a safe place. Let your executor know how to access it.
2. Define Your Wishes
Decide what you want to happen to each type of digital asset. You may want some accounts deleted, others archived, and some transferred to a specific person. For example, you might want to memorialize your social media accounts, transfer cryptocurrency to a family member, or allow someone to access your cloud storage and download photos.
Write out clear instructions for each major category. If you have business-related digital assets or online income, be specific about who should take over management or whether the accounts should be closed.
3. Appoint a Responsible Person
In most cases, your main executor will handle your digital assets as part of the overall estate. However, you may choose to name a digital executor if your digital life is complex. This person should be tech-savvy, organized, and capable of following detailed instructions.
In British Columbia, the role of a digital executor is not yet formally recognized by law, but you can still describe their responsibilities in a will or accompanying document. Be clear about which person is responsible for what tasks.
4. Update Your Will and Power of Attorney
Your will should give your executor express permission to manage your digital property. This includes accessing, retrieving, or deleting content, closing accounts, and recovering funds. Using plain language and naming specific platforms or asset types makes the instructions easier to follow.
You should also update your enduring power of attorney to include digital assets. This allows someone you trust to access and manage your digital life while you are still living, in case you lose capacity. Without this authority, even your spouse or child may be unable to help.
5. Use a Digital Asset Memorandum
Since a will becomes a public record after probate, it is not a good place to list private account information. Instead, create a separate digital asset memorandum. This private document can contain usernames, access methods, and detailed instructions.
You can update this list more easily without rewriting your entire will. Store the memorandum in a safe place and let your executor know where to find it. This practical step helps bridge the gap between your legal instructions and real-world access.
6. Review and Maintain
Technology changes quickly. It is important to review your digital asset plan every year or whenever you add, close, or change major accounts. If you update passwords or switch platforms, be sure to update your memorandum.
Regular maintenance keeps your digital asset plan accurate and functional. It also gives you a chance to rethink any changes in how you want those assets handled.
Special Considerations for Cryptocurrency
Digital currencies such as Bitcoin or Ethereum present unique challenges. Unlike traditional accounts, these are not held by a bank and cannot be retrieved without the private key. If the key is lost, the funds are unrecoverable.
If you own cryptocurrency, be sure to include access instructions in your memorandum. Note where the wallet is stored, how to unlock it, and who should receive the funds. Use a secure and private method to protect this information. A lawyer experienced in digital assets can help you plan around these details.
Final Thoughts
Digital assets are an important part of your legacy. From cherished family photos to valuable cryptocurrency, these accounts deserve the same care and planning as your physical property. Without proper planning, your executor may face serious challenges trying to recover or manage your digital life.
Including digital assets in your estate plan ensures that your online presence is handled with care and that your wishes are respected. Whether you are planning your first will or updating an existing one, working with a legal professional makes the process clear and effective.To start planning for your digital legacy, contact the estate planning team at Taylor Law Group. We will help you create a customized estate plan that includes everything that matters to you, both online and offline.
