Posted on September 27, 2023
Georgia Keramitsis
The modern world is forever evolving. We are now in an age where our assets often include digital assets. With constant changes to the way we operate, whether it may be through Artificial Intelligence, or investing in digital currencies such as Bitcoin, it is important to plan ahead and identify all your assets for the future.
When it comes to Wills and estate planning, a digital asset should be specifically identified and included in order for it to be protected.
Digital assets can be any form of digital media that is stored on a server or electronic device that a person has access to. Digital assets can include websites, cryptocurrency, online banking, client databases and storage accounts.
Cryptocurrency has seen a massive boom over the last few years with people developing a large net worth in their electronic wallets. However, cryptocurrency is useless without being able to access it. Failure to provide any information on where cryptocurrency is stored will mean it will be lost forever.
A problem which is increasingly arising is where the executor of a Will does not have access to digital assets. Your legal representative that executes your Will must know how to access your digital assets so they can fulfill their duties and obligations to the estate. Further, a legal representative has a duty to verify your assets and liabilities of the estate.
Sometimes we fail to see how our assets are growing in the digital age or to recognise them as an important part of our estate. A lot of people are asking themselves, what can I do to plan ahead? How do I protect my digital assets?
In order to appropriately protect your digital assets, it is important to:
- Identify all of your assets;
- Determine where the asset is held, who has ownership, who has access to it, and who has knowledge of it;
- Ensure adequate access is provided, including authentication and passwords and any other security issues;
- Draft specific clauses within your Will to allow an executor to access your digital assets;
- Provide instructions on how your digital assets should be distributed; and
- Provide all other relevant information to your legal representative.
The team at Scanlan Carroll can help draft or review your Will and take care of protecting your digital assets. If you require any advice or assistance to protect your asset pool, please do not hesitate to reach out to our team.
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