Digital Assets
We live in a world of increasing digital complexity. Concerns over fraud mean we are encouraged to be careful with our personal details, to never to write down passwords or PIN numbers. The latest news in online security suggests that we are not always following that advice. Understandably, the more of an internet presence we have, the harder it is to recall the increasing number of login details.
There are circumstances in which it can be important to release your passwords to a trusted individual. In the circumstance of a death, or incapacity, is there anyone who is aware of the extent of your online presence?
There is no definitive definition of digital assets and these assets can take many forms. Online bank accounts are the most commonly recognised. Other examples include funds held with PayPal, eBay and even the National Lottery. Unless you keep a comprehensive offline record of these or a note of your login details, you may find that certain assets you own are missed by executors and attorneys and lost all together.
The executors and attorneys of a professional photographer may find that they are unable to access digital photographs, which could cause huge loss of value to the estate. The same is true for authors of unpublished work. J R R Tolkien and Michael Crichton (of Jurassic Park fame) are just two of many authors with work published posthumously. It is easy to do so where there is a written manuscript. With computers being used widely by modern authors it is always possible that such gems will be lost forever.
Be aware that in terms of some digital assets we don’t necessarily own what we think we do. When using online services, we often blindly agree to terms and conditions which mean that we are restricted in our use of digital assets. Data held in social media accounts may be owned by online service providers and it may be difficult even for executors to gain access after you die. If there is anything sensitive posted to the site, the most that can be done is to turn the profile into a memorial, making it clear the owner has died but not much more. It cannot be deleted unless a representative has your account login details. This has started to change as you can now use the Facebook Legacy button to ‘will’ your account to another person.
We would always encourage you to handle your personal and financial affairs privately and securely, but you should also consider pragmatically, how your attorneys under a power of attorney or executors under your will would obtain an accurate idea of your estate or manage your data. It is sensible to have a list of such assets that your executors/attorneys can investigate which may be kept with your private papers.