The evolution of digital technology has completely transformed the way in which we go about our day-to-day lives. Banking, communication, shopping and entertainment are just some of the things that have been impacted, with a staggering 91% of the world’s population now owning a mobile phone.
As such, the emergence of this digital era means that many of the assets we now own are also digital, whether it be social media accounts, music, eBooks or cryptocurrencies.
However, it seems that many people still aren’t managing these assets correctly, as according to a 2022 campaign from The Society of Trusts and Estates Practitioners (STEP), a quarter of practitioners reported that their clients had experienced difficulties accessing or transferring digital assets upon death or incapacity.
With 90% of practitioners now expecting the client demand for advice on digital assets to increase, it is vital that individuals begin taking stock of their assets, ensuring everything has been properly accounted for.
A current lack of planning
Whilst there can be serious financial consequences to the mismanagement of digital assets, especially where cryptocurrencies are concerned, there is also an emotional toll for people to bear if access is permanently lost.
In fact, the STEP survey revealed that social media, email accounts and cloud storage for photos and documents were the most commonly asked about by clients, as many were keen to keep hold of sentimental memories, especially in circumstances where the asset owner had died or was incapacitated.
In other cases, this online content needs to be controlled to protect the privacy and financial property of the deceased, as without access to registered accounts, the necessary arrangements cannot be made.
According to a separate STEP-commissioned YouGov poll of 2,000 people, 64% of respondents admitted that the future of their sentimental digital possessions was important to them. Despite this, 57% had made no plans for passing on their assets, highlighting a potential lack of understanding around digital assets and how they are managed.
With this in mind, what options are available to those looking to protect their digital assets, so that important and valuable information is not lost?
Protect your assets
The first step to managing your digital assets is to create a comprehensive list of every account and asset you own. Given the amount of online activity an average person undertakes, there is bound to be something that slips your mind during the first inventory check, so be sure to review the list thoroughly upon completion.
Although we have been taught not to share sensitive information or disclose passwords to personal accounts, keeping a secure list of login details is another key way of protecting digital assets. This list can be stored in a lockbox with the condition that it is only opened by a trusted executor in the event of your death.
For those in possession of online crypto wallets, noting down your login details is essential to protecting valuable assets, as passwords cannot be recovered through conventional means.
Another effective way of protecting digital assets, especially social media accounts that contain sentimental collections of photos and videos, is through the use of digital legacy tools that are available on various platforms, including Apple, Facebook and Google.
These digital legacy tools can be set up quickly and easily, providing users with the ability to choose who can access the accounts following a loss of capacity or after they die. Without these legacy tools, the terms and conditions of most accounts means that access by another party is impossible and sentimental material is lost forever.
Legal support is critical…
Whilst many of us consider digital assets to be financially and sentimentally valuable, unfortunately there are a large number of people still not managing these assets appropriately.
This mismanagement could ultimately impact the digital legacy you leave behind for friends and family, compounding their feelings of grief if they are then unable to access and retrieve precious memories due to a lack of planning.
Of course, determining which are the digital assets can be confusing, so it is important for those feeling unsure to contact an experienced legal team so they can receive the necessary support and guidance.
