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Digital Assets

Also known as: Digital Property, Online Assets

Definition

Digital assets are anything stored electronically that you own or have rights to use, including cryptocurrency, online bank accounts, email accounts, social media profiles, digital photos, and cloud-stored files.

Understanding digital assets is crucial for modern estate planning because they represent both significant financial value and irreplaceable personal memories that could be lost without proper preparation.

What Are Digital Assets?

Digital assets exist only in electronic form, not as physical objects. They fall into two main categories: assets with monetary value (cryptocurrency, PayPal balances, online investment accounts) and assets with sentimental value (family photos, emails, social media memories). The Property (Digital Assets Etc.) Bill, introduced in September 2024, aims to clarify that certain digital assets like crypto-tokens and NFTs can be recognized as personal property in England and Wales. Currently, there's no comprehensive legal definition in UK law, but everything you own—including digital assets—becomes part of your estate when you die.

A critical distinction exists between owned and licensed digital assets. You own cryptocurrency and can transfer it through your will, but you're only licensed to use platforms like Facebook or Instagram under their terms of service. The Computer Misuse Act 1990 creates a significant legal barrier for executors, as unauthorized access to digital accounts is technically a criminal offense carrying up to two years in prison. This means your executor could face legal trouble accessing your accounts without explicit authorization, even though they have a duty to collect estate assets.

Sarah owns £15,000 worth of Bitcoin in a digital wallet. Because cryptocurrency is recognized as personal property under the proposed 2024 legislation, Sarah can leave specific instructions in her will for this asset to pass to her brother David. However, if Sarah doesn't provide the private key (access password) in a secure separate document, the Bitcoin will be permanently lost—even though David legally inherits it. James has 20,000 family photos on iCloud with immense sentimental value. He owns the photos themselves as intellectual property, but he only has a license to use Apple's storage service. Without proper planning, his wife Emma might not be able to access these photos before Apple closes the account.

Most digital assets should not be detailed in your will itself because wills become public documents when probate is granted—anyone can request to read them. The recommended approach is to include a digital asset clause in your will authorizing your executor to access accounts, then create a separate secure document (sealed envelope or password manager) with the actual access credentials. Consider appointing an executor with technical knowledge or designating a specialist "digital executor" to handle these complex assets.

Common Questions

"What counts as a digital asset in my will?" Digital assets include anything stored digitally that you own or have rights to use—such as cryptocurrency, online bank accounts, email accounts, social media profiles, digital photos, music libraries, cloud storage files, and NFTs. Both assets with monetary value (like Bitcoin) and sentimental value (like family photos) should be considered in your estate planning.

"Can I leave my social media accounts to someone in my will?" Most social media accounts (Facebook, Instagram, Twitter) cannot be left to someone in your will because you don't actually own them—you're licensed to use them under the platform's terms of service. However, you can appoint a digital executor to manage these accounts, such as memorializing or deleting them according to your wishes.

"How do executors access digital assets without breaking the law?" Executors face a legal challenge under the Computer Misuse Act 1990, which makes unauthorized access to digital accounts a criminal offense. To avoid this, you should create a separate secure document (not in your will) listing your digital assets, usernames, and access instructions, and explicitly authorize your executor to access these accounts in your will.

Common Misconceptions

Myth: Digital assets aren't real property, so they don't need to be included in my will.

Reality: Digital assets are legally part of your estate and can have significant monetary value (cryptocurrency, online business accounts) or irreplaceable sentimental value (family photos, emails). The Property (Digital Assets Etc.) Bill 2024 confirms that certain digital assets like cryptocurrency and NFTs are recognized as personal property in England and Wales. Without proper planning, these assets may be permanently lost or inaccessible to your loved ones.

Myth: I can just include my passwords in my will so my executor can access everything.

Reality: You should not include passwords or sensitive access details in your will because it becomes a public document when probate is granted—anyone can request to read it. Instead, create a separate secure document (sealed envelope or password manager) with access instructions and explicitly authorize your executor to access your digital accounts in the will itself. This protects your privacy while giving your executor legal permission.

  • Cryptocurrency: A specific type of high-value digital asset now legally recognized as property under the Property (Digital Assets Etc.) Bill 2024.
  • NFT: Non-fungible tokens are unique digital collectibles that represent a specific category of digital asset with intellectual property value.
  • Digital Executor: A specialist role appointed to manage digital assets specifically, particularly useful when your main executor lacks technical expertise.
  • Social Media Account: Licensed digital platforms like Facebook and Instagram that cannot be inherited but can be managed through memorialization or deletion.
  • Digital Legacy: The broader concept of your entire online presence and reputation after death, extending beyond just assets to include digital footprint.
  • Password Manager: A secure tool for organizing digital asset access credentials, though it creates a single point of failure if your executor cannot access it.
  • Cloud Storage: Platforms like Google Drive, iCloud, and Dropbox where many digital files reside, requiring specific access procedures after death.

Need Help with Your Will?

Digital assets are a critical part of modern estate planning—from cryptocurrency worth thousands to irreplaceable family photos. Without proper authorization in your will, your executor may be unable to access these assets legally, or worse, they could be lost forever.

Create your will with confidence using WUHLD's guided platform. For just £99.99, you'll get your complete, legally binding will plus three expert guides. Preview your will free before paying anything—no credit card required.

Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.