Today’s world is becoming increasingly digital, with many of our most valuable possessions existing online. From social media accounts to online banking, our digital assets hold significant financial and sentimental value. However, when a loved one passes away, many of us are unsure of what happens to these accounts and if we can legally access them.
From this guide, Victorian families will get a clearer understanding of how digital assets are handled after death and how it has become an essential part of estate planning.
What are Digital Assets?
Digital assets are possessions you own online. Some have monetary value, while others hold personal memories or records. They may include:
- Email accounts.
- Online banking.
- Social media profiles.
- Online subscriptions.
- Digital photographs.
- Cryptocurrencies.
- Domain names.
- Online businesses.
- Digital wallets.
Because digital assets are protected by passwords, privacy laws, and service agreements, accessing them after death can be a lot more complicated than many families expect.
Who can Access Digital Assets?
In Victoria, it is typically the executor or administrator of an estate who has control over the deceased person’s assets. However, unlike physical assets, gaining access to digital accounts can be challenging.
With many online platforms holding policies regarding deceased users, you may need to provide proof of death, identification, and evidence of legal authority before access is granted. For example, some social media companies allow accounts to be memorialised, while others allow account deletion once requested by authorised family members.
Additionally, due to privacy protections, access to the account’s content itself may be restricted.
The Challenge of Passwords and Encryption
A lack of access credentials is what hinders most families. If we’re aware of passwords or security questions, gaining access to accounts would be a simple task. Cryptocurrency presents an even greater challenge.
If keys or recovery phrases are unknown, it may be impossible to access these digital currencies, regardless of their value. This shows how necessary it is to have secure yet accessible records of important login details as part of an estate plan.
Including Digital Assets in Estate Planning
The best way to protect your digital assets is to include them in your estate planning process. A thorough estate plan should include:
- An inventory of digital assets.
- Details of where they are held.
- Instructions on how they should be managed after death.
Creating a secure digital asset register should also be considered that lists:
- Accounts.
- Passwords.
- Recovery methods.
- Wishes for each asset.
This sensitive information should be stored securely, updated regularly and not included in the will. Once probate is granted wills become public documents for all to access.
Why Professional Advice Matters
As digital laws and policies continue to evolve, it’s important to ensure that your assets are properly identified and documented in your estate strategy. Calling on the professionals will help minimise delays and disputes for family members during an already difficult time. Our lives are becoming more connected online, so our digital assets should receive the same attention as our physical properties, investments, and personal possessions.
Take proactive steps today and contact Gardenia Funerals for more information. Protect your valuable digital legacy and provide clarity for yourself and your loved ones.
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