Most people are aware of the importance of making a Will to deal with their physical assets. Relatively few of us consider how loved ones would cope with valuable digital assets and web accounts if we were to die or become incapacitated.
A digital asset is one that requires a password and username to access. Examples include web-based photograph libraries, digitally-stored music collections, domain names, Facebook and other social networking sites, Ebay, iTune, Hotmail, Paypal, iCloud, LinkedIn, Flickr accounts, online investment and banking accounts and utility accounts.
With the internet so much a part of our lives, we are rapidly acquiring valuable digital assets of sentimental or of monetary value. We correspond by email, create and store digital images and keep important work and personal documents in digital form. The concept of passing down a digital inheritance is now a reality for nearly everyone.
Failure to plan for digital inheritance can cause problems for those who are left to sort out a deceased’s affairs. Without usernames and passwords it can prove difficult, if not impossible for executors to access valuable web domains, social networking sites and other online accounts. As the executors’ duty is to gather in and administer all of the assets of a deceased’s estate, it is important that they are fully aware and armed with the necessary information to do so. They will also need to close down accounts to prevent identity theft or ongoing liabilities.
It is important that when making your Will you discuss these issues with your solicitor and make plans to notify your executors about the digital material you have created. This will enable them to track down and access these assets in the event of your death. While executors may be permitted access to a deceased’s online account by some companies, if a person dies without a Will many companies refuse to grant access without a password therefore denying the next of kin access to those assets.
The challenge is to keep the information up-to-date, hidden, safe and yet accessible when the time comes. It is not advisable to include details of your web-based accounts, passwords and user names in your Will. A Will once proved becomes a document of public record and therefore potentially accessible by fraudsters. By their nature, passwords and usernames are constantly being updated which would in turn necessitate frequent Will changes. However, you would be able to specify who should inherit the digital assets that you own.
There are a few website companies which specifically deal with this issue. Although they may vary slightly in their format or protocol their basic objective is the same: they will store vital information and even personal messages securely on your behalf in a ‘digital will’. On the face of it, this might be an ideal solution. However, there is the danger that sites might be accessed by hackers and fraudsters or that the website might no longer be in operation when you died. A ‘digital will’ of this kind is not a valid Will.
Solutions include leaving a note of passwords and codes entered onto a regularly updated asset log kept in a sealed envelope with the firm of solicitors with whom you have made your Will. You could also nominate the persons who would have access to those passwords and usernames preferably your executors. Apart from a paper record, you could burn the information onto a CD or put it onto a flash drive and again deposit it with your solicitor.
Maureen Gilroy-Thomas is a solicitor in Raworths’ probate, wills and trusts unit.. To contact Raworths telephone 01423 566666 or visit our offices at Eton House, 89 Station Parade, Harrogate, HG1 1HF. Alternatively, you can contact her by email maureen.gilroy-thomas@raworths.co.uk
