Wills and Digital Assets: Preparing for the future of Estate Planning

As the digital landscape evolves, so too must our approach to estate planning. The proposed Property (Digital Assets etc) Bill, currently under consideration in the House of Lords, aims to formally recognise digital assets—such as cryptocurrencies, Non-Fungible Tokens (NFTs) and online accounts —as property under English and Welsh law. This proposed change in the law demonstrates the importance of including digital assets in your Will to ensure they are managed and distributed in accordance with your wishes.

Why digital assets matter in Will drafting

• Digital assets can include a wide range of items, including:
• Cryptocurrency holdings (e.g., Bitcoin, Ethereum)
• Non-Fungible Tokens (NFTs)
• Online accounts with financial value (e.g., email, gambling, social media, cloud storage)
• Digital files and records
• Domain names and websites

Failing to account for these assets in your Will can lead to complications, such as:

• Loss of access to valuable or sentimental digital property
• Disputes among beneficiaries
• Legal challenges in asset distribution

Estate Planning for Digital Assets

Steps you can take now to prepare for this legislation include:

1. Documenting your assets: Create a comprehensive list of your digital assets, including account details and access information.
2. Specifying your instructions: Clearly outline how you wish each digital asset to be handled after your death – whether it should be transferred, archived, or deleted.
3. Appointing a knowledgeable Executor: Choose an executor who understands digital assets or you trust to obtain professional advice to manage them appropriately.
4. Regularly updating your Will: As digital assets can change frequently, ensure your Will reflects your current holdings and intentions.

Challenges for Executors

Executors may face unique challenges when managing digital assets, such as:

• Access issues: Securing login credentials and navigating security protocols.
• Valuation difficulties: Determining the value of volatile assets like cryptocurrencies.
• Legal complexities: Understanding terms of service agreements and transfer restrictions.

It’s crucial for executors to seek legal guidance to navigate these complexities effectively.

How Thatcher + Hallam LLP can help

At Thatcher + Hallam LLP, we can help you navigate the evolving nature of Wills and estate planning in the digital age. Our experienced team can help you consider your digital asset portfolio in your Will and ensure compliance with current and forthcoming legislation. We can also guide Executors to ensure comprehensive administration of an estate.

Contact us at 01761 414646, email enquiries@th-law.co.uk  or contact us through our website to schedule an appointment to discuss a Will or Estate matter.