Digital assets are on the rise. An inevitable byproduct of digitalisation, more people now hold digital assets than they ever have – but may still neglect to include them in general estate planning.
With potentially high-value assets at stake, it is vital that you understand what a digital asset is, how to include them in your estate plan and where to seek support.
Digital assets explained
Part of the reason why individuals may fail to include digital assets in their Will or estate plan is that the term incorporates many different assets which might not necessarily hold obvious value.
These may include:
Hotly discussed in the press, blockchain assets are perhaps the most obvious of digital assets.
However, assets such as writing, music or imagery can hold a lot of value, particularly if they are being used elsewhere and you are receiving royalties from them.
Not all digital assets will hold a high value. Regardless, they are still part of your estate and will therefore be passed to your beneficiaries and should be considered in your Will.
Why digital asset planning is important
Digital assets are slippery. Simply put, it can be hard to prove that a digital item belongs solely and originally to you and your beneficiaries.
Keeping and monitoring these assets can help to protect against challenges down the line.
It’s also important to outline exactly what you have and who will benefit from it as digital assets may fluctuate wildly in value.
Aside from the changing value of blockchain assets, this may, for example, take the form of a written asset becoming popular, or an image being published in a widely-read magazine.
How to plan for the digital age
Planning for your digital assets doesn’t have to be a challenge.
The first thing to do is to identify everything that you own that could be considered a digital asset and seek assistance in determining what should be covered.
Once you have identified the assets you want to pass on, you need to decide who will benefit from them and whether anything is to be left in trust for later use.
This must be detailed in your Will.
Importantly, you should include details on how relevant people can access your digital accounts, otherwise your assets may be unreachable.
The complexities of digital assets
For reasons of access, variety and ownership, it’s important that you detail all of your digital assets to ensure that your beneficiaries receive them.
If you are struggling to identify your digital assets and incorporate them into your Will, our private client team can help.
For advice on digital assets, Will writing and estate planning, please contact us and speak to a member of our team today.
