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PLANNING YOUR DIGITAL INHERITANCE
WEALTH PLANNING EXPERT AND CRIPPS PARTNER SIMON LENEY LOOKS AT THE IMPLICATIONS OF ONLINE ASSETS AND INHERITANCE .
Simon Leney
Have you got an eBay or Paypal account ? How about Facebook or email ? Or maybe you just have photos held electronically either in your computer hard drive or in a cloud account ? All of these and many other " digital assets " are accessed via passwords and usernames you have chosen , and no doubt kept confidential , to reduce the risk of misuse by one of the many fraudsters lurking online . But that confidentiality becomes a problem if you are no longer around to tell your family about your digital accounts and how to access them .
Often sentimental value is just as great , if not more important than monetary value . While it ’ s commonplace to encounter sibling rivalries about photos and heirlooms with little financial value but plenty of family significance , solicitors are increasingly advising on access to online digital accounts . Key things to think about when writing a Will are who should be able to access your accounts and how to provide this information . You should also consider whether such access is important should you lose mental capacity .
One complication is that some digital assets ( like a PayPal account in credit ) represent monetary value making them part of an estate ' s value , while others have a personal value but do not need to be valued as part of the probate process . And if there are ( say ) three beneficiaries , which one should acquire any legal rights to digital assets ? When the issue of digital inheritance first began to be a factor in estate planning , concerns were focused on ownership and it became increasingly known that certain accounts ( such as music held on an iTunes account ) are merely licensing arrangements , so that music downloaded is not owned by an iTunes account holder but , like a library book , merely borrowed . Nonetheless it ' s possible to log into an account with the username and password , even if not the original account holder . Making that information available to someone else in the last resort , if you have died or can no longer access it , is sensible planning .
Of course caution dictates that software which collects your log-in data could be at risk of being accessed improperly by hackers and it is that risk which understandably holds back many clients from using it . Physical data storage containing the information , for example a CD or memory stick , or even plain old paper , although cumbersome , may in practice offer greater security .
In planning terms , it ' s sensible to start by making a list of your digital accounts to judge the size and significance of the problem . Things like bank accounts generally permit access to your executors and attorneys ( so long as they know where to go ) by a variety of mechanisms of which online access is only one . This means it is those that are only capable of access online which need consideration , such as ( say ) your email account . A simple approach is to keep that list with your Will ( you have made or reviewed yours recently , haven ' t you ?) the whereabouts of which you should make known to your family . Specialist solicitors will offer an opportunity to discuss how to manage your digital inheritance as part of the Will-making process and enable you to decide what arrangements suit you best .
For further information please contact Simon Leney at simon . leney @ cripps . co . uk or call 01892 506 005 .
These issues have led to software coming onto the market designed to hold details of digital assets , with a " master " password access or in some cases delegated authorised access for a nominated individual in specified circumstances such as on production of a death certificate . Some software will automatically collect sign-up data and store it as you register user names and passwords on your devices , while other entry level software requires manual entries . The latter is really little different from a password-protected Word or Excel document , except that the software provider will control access until proof of death . If you are not overly sensitive about lifetime access it ' s possible just to notify your next of kin of how to find digital accounts and to provide the access data . The trick is to remember to update that information each time a password change takes place , or whenever you open a new online account . www . cripps . co . uk @ crippslaw
About Cripps
Cripps is a key regional law firm serving clients nationally and internationally from offices in Kent and London . Recognised countrywide for both its commercial and private client work , Cripps is ranked in the Top 25 Private Client Law Firms . The firm focuses on wealthier families , entrepreneurial businesses and the real estate sector .
Find out more at cripps . co . uk
This article gives examples and is intended for general guidance only .
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