Digital assets are now a routine part of modern estates, yet they are still frequently overlooked in estate planning. Online accounts, cloud storage, subscription services and cryptocurrency holdings can all create real difficulties after death if access arrangements are unclear or incomplete.
Unlike traditional assets, digital assets raise questions not only of ownership, but also of access. Executors may know that an asset exists but be unable to retrieve it. In some cases, valuable assets are lost entirely.
This article explains how digital assets are treated in estate planning, where problems commonly arise, and how these risks are usually managed in practice.
What counts as a digital asset?
The term “digital assets” covers a wide range of things, including:
online banking and investment accounts,
email and cloud storage accounts,
social media profiles,
subscription services,
domain names and websites,
digital photos and intellectual property,
cryptocurrency and NFTs.
Some of these assets have clear financial value. Others are sentimental or operational in nature. From an estate planning perspective, both can matter.
Ownership versus access
One of the most important distinctions in this area is between legal ownership and practical access.
An executor may be legally entitled to deal with an asset, but still be unable to access it due to:
Technology providers are often bound by their own terms of service and privacy obligations. Even with probate, executors may face delays or refusals if access has not been properly planned.
Email, cloud storage and online accounts
Email accounts often act as gateways to other services. Losing access can make it difficult to reset passwords or identify additional assets.
Many platforms do not automatically grant executors access, even after death. Instead, they require specific documentation and, in some cases, court orders.
From a practical perspective, clarity about where information is stored and how it can be accessed is just as important as formal legal authority.
Social media and online presence
Social media accounts don’t always have financial value, but they can carry emotional and reputational significance.
Some platforms allow accounts to be memorialised or deleted on death. Others permit legacy contacts to manage limited aspects of the account. These settings are often ignored during life, leaving families uncertain about what to do later.
Clear instructions reduce confusion and conflict.
Cryptocurrency – a different risk profile
Cryptocurrency presents a unique challenge in estate planning.
Unlike traditional assets, there is often no central authority that can intervene. If private keys or recovery phrases are lost, the asset may be irretrievable. There is no equivalent of a bank that can be contacted after death.
Common issues include:
heirs being unaware that crypto exists,
private keys stored insecurely or not at all,
confusion about whether crypto is held personally or through an exchange, and
lack of clarity about who controls wallets.
For crypto holders, estate planning is not optional. Without planning, assets can disappear permanently.
Should passwords be included in a Will?
Including passwords directly in a Will is generally not recommended. Wills become public documents once probate is granted, which creates obvious security risks.
Instead, common approaches include:
maintaining a secure digital asset register,
using a password manager with clear access instructions, and
providing executors with guidance on where and how information is stored.
The key is balancing security during life with accessibility after death.
Executors and digital assets
Executors are increasingly expected to deal with digital assets, yet many feel ill-equipped to do so.
In practice, executors often struggle with:
identifying which digital assets exist,
dealing with multiple platforms and jurisdictions,
accessing crypto wallets or exchanges, and
understanding the tax implications of digital transactions.
Clear documentation during life can dramatically reduce the burden on executors later.
Tax considerations
Digital assets are not exempt from tax considerations. Cryptocurrency, in particular, may give rise to capital gains tax when disposed of after death.
Executors need to understand:
the value of digital assets at the date of death,
how gains or losses are calculated, and
how these assets fit within the broader estate administration.
Failure to properly account for digital assets can expose executors to compliance issues.
Integrating digital assets into an estate plan
Digital assets should not be treated as an afterthought. They should be considered alongside:
For many clients, a short schedule identifying digital assets and access arrangements is enough to prevent major problems.
Reviewing arrangements over time
Digital environments change quickly. Platforms evolve, security settings are updated, and new assets are acquired.
Estate planning for digital assets should be reviewed periodically, particularly when:
An outdated plan can be almost as problematic as having none at all.
Key takeaway
Digital assets are now a routine part of modern estates, but they introduce risks that traditional planning does not always address. Ownership alone is not enough. Without clear access arrangements, executors may be unable to locate or retrieve assets, regardless of legal entitlement.
Simple, practical planning can prevent loss, delay and unnecessary stress for those administering an estate.
Related Guides — Wills & Estates Law in NSW
Digital assets and cryptocurrency are increasingly important in modern estate planning. The following guides explore other key aspects of wills, estate administration, and inheritance law in New South Wales to help you protect your digital and traditional assets.
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