7 Mistakes People Make With Their Digital Assets (And How to Avoid Them)
When most people think about making a Will, they think about their home, savings, investments and personal belongings.
Very few stop to think about their digital life.
Yet many of our most valuable possessions now exist online. Family photographs stored in the cloud, online bank accounts, PayPal balances, cryptocurrency, social media accounts, email accounts, loyalty points and even online businesses can all form part of your digital estate.
If nobody knows they exist, or how to deal with them, they can create unnecessary stress for your loved ones after you've gone.
Here are seven of the most common mistakes I see people make when it comes to planning their digital legacy.
1. Assuming Your Family Can Simply Log In
One of the biggest misconceptions is that your husband, wife or children can simply use your passwords after you've died.
Unfortunately, it isn't always that straightforward.
Many online providers have their own terms and conditions about who can access an account after someone dies. Even if a family member knows your password, they may still encounter practical or legal difficulties.
What you can do
Where available, make use of official legacy features offered by providers, such as legacy contacts or inactive account settings.
These are designed specifically to help families manage accounts when someone dies.
2. Forgetting to Tell Anyone What You Have
Many of us now bank online, receive paperless statements and store important information digitally.
If your executors don't know an account exists, they may never find it.
That could include:
Online savings accounts
Premium Bonds
Investment platforms
PayPal balances
Cryptocurrency
Domain names
Online businesses
Loyalty schemes
What you can do
Create a simple list of your digital assets.
You don't need to include passwords, but you should record what accounts you have and where they can be found.
Keep the list somewhere safe and make sure your executors know it exists.
3. Keeping Passwords Inside Your Will
Some people think the safest place for passwords is inside their Will.
It isn't.
Once probate has been granted, a Will becomes a public document, meaning anyone can obtain a copy.
What you can do
Keep passwords separately from your Will.
A reputable password manager or a securely stored password record is usually a much safer option.
You can also leave guidance for your executors about where important information is stored.
4. Forgetting About Valuable Digital Assets
Not every valuable asset exists in the physical world.
Increasingly, people own:
Cryptocurrency
Digital investment accounts
Online businesses
Websites
Income from YouTube or social media
Domain names
Without clear records, these assets can easily be overlooked.
What you can do
Make sure your executors know these assets exist and where relevant information can be found.
If appropriate, mention them during your Will appointment so they can be considered as part of your wider estate planning.
5. Overlooking Your Digital Memories
For many families, the most precious digital assets aren't financial at all.
They're the thousands of photographs and videos stored on phones, tablets and cloud accounts.
These memories often become even more valuable after someone dies.
What you can do
Think about where your photographs are stored.
Consider backing up important memories and letting your family know where they can be accessed.
It's one of the simplest things you can do, but one that can mean a great deal to the people you leave behind.
6. Forgetting About Two-Factor Authentication
Many online accounts now use two-factor authentication, sending security codes to a mobile phone or authentication app.
Even if someone knows your password, they may still be unable to access your accounts.
What you can do
Make sure someone you trust knows how to access your devices if appropriate, and keep details of important accounts organised.
If you've also made Lasting Powers of Attorney, your attorneys may need access to certain financial accounts if you lose mental capacity, so planning ahead can make life much easier.
7. Assuming Your Will Covers Everything Automatically
A Will is an essential part of estate planning, but it isn't the whole picture.
Some digital assets can be gifted through your estate, while others are governed by the provider's own terms and conditions.
Every online platform is different.
What you can do
Talk to a professional about your circumstances.
A properly prepared Will, together with clear records of your digital assets and practical guidance for your executors, can help ensure your wishes are carried out as smoothly as possible.
Why Digital Estate Planning Matters
Our lives are becoming more digital every year.
Most of us now have dozens—if not hundreds—of online accounts.
Without some forward planning, your family may spend countless hours trying to work out what exists, how to access it and what needs to be closed or managed.
Taking a little time now can save them a great deal of uncertainty later.
How I Can Help
At South West Wills & Estate Planning, I don't just prepare Wills.
I take the time to understand your circumstances and discuss the practical issues that are often overlooked, including your digital assets, online accounts and the people you've chosen to deal with your estate.
Whether you're making your first Will, updating an existing one or putting Lasting Powers of Attorney in place, I'll explain everything in plain English and help you create a plan that's right for you.
I offer home visits throughout Cornwall and North Devon, together with secure online appointments across England and Wales.
Frequently Asked Questions
What are digital assets?
Digital assets include anything you own, control or store electronically. This can include online bank accounts, investment platforms, cryptocurrency, email accounts, websites, digital photographs, social media profiles, online businesses and cloud storage.
Should I include passwords in my Will?
No.
Your Will becomes a public document after probate, so passwords should always be stored separately in a secure location.
Can my executor access my online accounts?
It depends on the provider and the type of account.
Some platforms offer legacy settings, while others have their own procedures for dealing with accounts after someone dies.
Do I need to tell my Will writer about my digital assets?
It's a good idea to mention anything significant, particularly if you own valuable online assets, run an online business or have cryptocurrency or other digital investments.
Protecting Your Digital Legacy
Your digital life is now just as much a part of your estate as your home, your savings and your personal belongings.
Planning ahead doesn't have to be complicated.
By keeping good records, making a professionally prepared Will and ensuring the right people know where to find important information, you can make life much easier for the people you'll one day leave behind.