When most people think about estate planning, they tend to focus on physical assets such as property, vehicles, investments and savings. However, in today’s digital world, a significant part of our lives and, in some cases, our wealth exists online.
From social media profiles and email accounts to cloud storage, online banking, reward programmes and cryptocurrencies, digital assets have become an increasingly important part of modern estate planning.
Yet despite their value, many people fail to consider what will happen to these assets when they pass away.
“Traditionally, estate planning focused on tangible assets such as property and investments. Today, many individuals have built extensive digital footprints and may own digital assets that hold financial, personal or sentimental value. Without proper planning, loved ones may face significant challenges accessing or managing these assets after death,” says Heather Muller, Estate Product Head at FNB Fiduciary.
What are digital assets?
A digital asset is any asset, account or information that exists in electronic form. These can include:
- Email accounts
- Social media profiles
- Online banking and investment accounts
- Digital wallets and cryptocurrency
- Cloud storage platforms
- Digital photographs and videos
- Loyalty and rewards programme accounts
- Domain names and websites
- Online business platforms
- Subscription services and digital content
While some of these assets may have financial value, others may hold important personal information or treasured memories that families wish to preserve.
The challenges loved ones may face
One of the biggest misconceptions is that family members can automatically access a loved one’s online accounts after their death.
In reality, privacy laws, security measures and platform-specific policies often make access far more complicated.
Different digital platforms apply different rules when an account holder passes away. Some allow accounts to be memorialised, while others permit the permanent deletion of accounts upon request. In many cases, platforms require proof of death and supporting documentation before providing any assistance.
Without clear instructions, family members may find themselves struggling to identify digital assets, retrieve important information or manage online accounts.
“Many people do not realise the extent of their digital estate until they start documenting it. The challenge for family members is that these assets often remain hidden behind usernames, passwords and security measures. Proper planning can help reduce uncertainty and administrative burdens for loved ones,” says Muller.
Why digital assets should form part of your estate plan
Although a Will remains one of the most important estate planning tools available, it is equally important to consider how digital assets will be managed after death.
Estate planning should include clear instructions regarding digital assets, including who should be responsible for managing them and what should happen to them.
This may include:
- Closing certain accounts.
- Preserving digital memories, photographs and videos.
- Managing online business interests.
- Transferring digital assets with financial value.
- Memorialising social media accounts where appropriate.
Importantly, sensitive information such as passwords should not generally be included directly in a Will, as a Will may become a public document during the administration process.
Instead, individuals should consider maintaining a secure record of digital accounts and login information that can be accessed by a trusted individual when required.
Creating a digital estate plan
As part of a comprehensive estate plan, individuals should consider creating a digital asset inventory.
This inventory should include:
- A list of important online accounts.
- Information about digital assets with financial value.
- Details of digital subscriptions and memberships.
- The location of important digital documents.
- Instructions regarding social media profiles.
- Information about password management systems or digital vaults.
Individuals should also regularly review their digital estate plan to ensure it remains up to date as technology and online activities evolve.
Protecting your digital legacy
Estate planning is about far more than distributing assets. It is about creating certainty and making things easier for loved ones during an already difficult time.
As more aspects of our personal and financial lives move online, digital assets can no longer be treated as an afterthought.
“A comprehensive estate plan should reflect the way we live today. By including digital assets in your estate planning discussions, you can help ensure that your wishes are respected, important information remains accessible and your loved ones have the guidance they need when managing your affairs,” concludes Muller.
This Wills Week, South Africans are encouraged to think beyond traditional assets and consider the digital footprint they leave behind. After all, your estate is no longer limited to what you own physically but also includes the life you’ve built online.
