Don’t forget about online assets
Whilst the word ‘inheritance’ may typically conjure up thoughts of property and money, technology has meant that its meaning now extends far beyond family heirlooms.
Although the majority of an individual’s assets may be in the real world, a growing number are likely to reside in the digital world, in the form of a music library, social media photo album or Paypal account.
Despite them being non-existent in physical terms, their monetary worth is often very real, with online assets frequently being sold for hundreds upon thousands of pounds. As the value of these online accounts increases, they begin to take up a larger proportion of an individual’s overall wealth. Therefore, it’s only natural that someone will want to ensure that their digital assets are passed on in line with their wishes as opposed to being abandoned in the depths of cyberspace.
In order to avoid this, it’s important that accounts are dealt with in the appropriate way after death.
Dependent on the type of account concerned, assets can either be bequeathed, memorialised, taken down or deactivated. Whilst it will tend to be just online accounts that are considered in this respect, digital assets can often be accrued in less obvious ways which can be overlooked and ultimately abandoned. These can include points cards, airmiles and even gaming inventories.
For some individuals, the worth of an asset may exist beyond value in itself, instead held within intellectual property. Where something has been created organically, whether it’s an article, artwork or video, there is a high possibility that it will hold value.
Whilst many feel that it’s important to bequeath assets that have monetary value, digital assets with sentimental value have an equal significance in some cases. Personal photos, music and videos are increasingly being saved online with significant amounts of sentimental files being stored in the ‘cloud.’ In some respects, this kind of personal asset could be considered more important where loved ones are concerned.
Whilst it is clear that a growing proportion of assets now reside online, the law is yet to appropriately reflect this.
Websites and social media platforms differ in how they deal with consumer data, each having a different approach to dealing with online assets. In order to provide executors with the best chance of accessing digital assets later down the line, it’s important that clients are advised appropriately.
Although the law is unclear where bequeathing of digital assets is concerned, it’s recommended that clients should compile a list of online assets which they wish to bequeath and instructions on how to access them. In order to ensure that these accounts remain secure, any confidential information such as passwords should be stored separately to the will.
It is hoped that in the future, a digital will can be introduced, enabling individuals to create a secure inventory of their assets online which is unlocked to the relevant beneficiaries upon death.
