What Happens to Digital Assets After Death?

Modern life is increasingly lived online. From online banking and social media to cloud storage and cryptocurrency, many of us own digital assets that hold both financial and sentimental value.

However, while people often take great care when planning what happens to their home, savings and possessions, digital assets are frequently overlooked.

Including digital assets in your estate planning can make life much easier for your loved ones and help ensure important accounts, valuable investments and treasured memories aren't lost.

In this guide, we'll explain what digital assets are, what happens to them after death, and how you can include them in your estate planning.

What Are Digital Assets?

Digital assets are anything you own, manage or access electronically.

They may have financial value, sentimental value or both.

Examples include:

• Online bank accounts
• Cryptocurrency
• PayPal balances
• Online investment accounts
• Email accounts
• Social media profiles
• Cloud photo storage
• Digital documents
• Online subscriptions
• Websites and domain names
• Online businesses
• Reward points and loyalty accounts

Some assets can be transferred after death, while others are governed by the individual provider's terms and conditions.

Why Are Digital Assets Important?

Many people underestimate how much of their life exists online.

Digital assets can include:

• Family photographs stored in the cloud.
• Important financial records.
• Password managers.
• Business information.
• Cryptocurrency wallets.
• Valuable online businesses.

Without proper planning, family members may struggle to access or even locate these assets.

What Happens to Online Accounts After Death?

Every provider has its own policies.

Some accounts can be closed by family members after providing a death certificate.

Others may allow data to be downloaded or transferred.

Some accounts are permanently deleted after a period of inactivity.

For this reason, it's helpful to keep a secure record of your important digital accounts and let your executors know where this information can be found.

What About Social Media Accounts?

Many social media platforms allow accounts to be memorialised or closed following a person's death.

Depending on the platform, family members may be able to:

• Request account closure.
• Memorialise an account.
• Download certain content.
• Remove personal information.

However, login credentials shouldn't simply be shared through your will, as a will becomes a public document once probate has been granted.

What Happens to Cryptocurrency?

Cryptocurrency presents unique challenges.

Unlike traditional bank accounts, digital currencies are often protected by private keys or recovery phrases.

If these are lost, the cryptocurrency may be impossible to recover.

If you own cryptocurrency, it's sensible to:

• Keep secure backup information.
• Tell your executors where recovery details are stored.
• Include guidance within your wider estate planning.

Should Passwords Be Included in Your Will?

Generally, no.

A will becomes a public document after probate.

For security reasons, passwords, PINs and recovery codes should be stored separately using a secure password manager or encrypted document.

Your executors should know where this information is stored without the sensitive information appearing directly in your will.

Can Executors Access Digital Assets?

Sometimes.

Executors are responsible for administering your estate, but their ability to access digital assets depends on:

• The type of asset.
• The provider's terms.
• Privacy legislation.
• Whether suitable instructions have been left.

Clear planning can significantly reduce delays.

If you're unsure about choosing executors, read Who Can Be an Executor? and What Does an Executor Actually Do?

How Can You Protect Your Digital Legacy?

Good estate planning now includes your digital life.

Consider creating a secure inventory containing:

• Important online accounts.
• Email addresses.
• Cryptocurrency holdings.
• Subscription services.
• Digital businesses.
• Online storage locations.

Update this regularly as your accounts change.

Should You Leave Instructions?

Yes.

Many people prepare a separate digital asset inventory or letter of wishes.

This document can explain:

• Which accounts are important.
• Which should be deleted.
• Which contain sentimental information.
• Who should receive valuable digital assets.
• Where passwords are securely stored.

Unlike your will, this document can be updated whenever necessary without rewriting the entire will.

Common Mistakes to Avoid

Forgetting Cryptocurrency

Digital currencies can easily be lost forever if recovery information isn't available.

Keeping Passwords Inside Your Will

Because wills become public after probate, sensitive login information shouldn't be included.

Forgetting Online Businesses

Websites, online shops and digital income streams may have considerable value and should form part of your estate planning.

Never Updating Your Digital Asset List

People frequently change passwords, create new accounts and close old ones.

Review your digital inventory regularly.

Frequently Asked Questions

Are digital assets part of my estate?

Many are, although treatment depends on the provider's terms and the type of asset.

Can my family access my email?

Not automatically. Access depends on the email provider's policies and any instructions you've left.

Should I include passwords in my will?

No. Passwords should be stored securely elsewhere.

Can cryptocurrency be inherited?

Yes, provided your executors can access the necessary recovery information.

How often should I review my digital assets?

At least once a year or whenever your online accounts change significantly.

Final Thoughts

Our digital lives now form a significant part of our overall estate.

Whether it's online banking, treasured family photographs, cryptocurrency or social media accounts, planning ahead helps ensure your loved ones can manage your digital assets in accordance with your wishes.

By including digital assets within your wider estate planning, you can reduce stress for your family and avoid unnecessary complications in the future.

How Ember Heritage Can Help

Estate planning today extends far beyond property and bank accounts.

At Ember Heritage, we help clients prepare comprehensive wills that consider every aspect of their estate—including valuable digital assets.

Whether you're writing your first will or reviewing an existing one, our experienced team can help ensure your wishes are clearly documented and your loved ones are protected.

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