What are my digital assets?
These are the things that you manage or store on your computer, laptop, iPad, smart watch, smartphone or online. You probably have photos, videos, music, e-books, blogs, movies, emails, social media accounts, games, online wallets, and NFTs all on your smart devices or online. All of these are called “digital assets”. These are very common items and are just as important as any physical assets that you have in the real world. They should therefore be part of your estate planning to ensure that your family can access these when you pass away.
Why are my digital assets important?
In recent years, with the rise of cryptocurrency, the Metaverse and NFTs, digital assets have become increasingly valuable and important. It is essential to make plans to ensure that these would be passed onto your friends and family so they do not get confiscated or removed by the companies. The following are a few reasons why digital assets are important:
Financial value
This reason is obvious. Your digital assets such as your cryptocurrencies, NFTs, online games, online wallets, domain names, and online businesses could be of high financial value.
Sentimental value
Your photos, videos, music and emails may not be of any financial value, but they are memories of you during your lifetime, and they could be of great significance for your family and friends.
Identity Theft
It has been increasingly common that a person’s identity is hacked and then stolen for other means. If you pass away, you would have no control over this and so it is important that your digital assets are arranged beforehand.
How can I plan my digital legacy?
First, create an inventory of your digital assets and the companies with which you hold accounts so your trustees know who to contact. Once the list is complete you should store it with your Will. Do not include passwords in this list because doing so could create a risk of theft or fraud.
Check the official account settings and current policies for each provider. Some services let you nominate a legacy contact, set an inactivity plan, request memorialisation, or arrange account closure. Access and transfer rights vary by provider and may change over time.
For each account, record enough information for your trustees to identify the provider and understand what action you want them to take. Keep recovery codes, private keys and passwords in a separate secure password manager or other protected arrangement rather than in the asset list itself.
Review the inventory regularly, especially after opening or closing an account or acquiring a digital asset with financial value.