Digital Will: Definition, How to Make, Pros and Cons

A digital will is an important legal tool designed to manage online assets after a person’s death. In today’s digital world, individuals accumulate various digital properties, including social media accounts, cryptocurrency, and cloud-stored documents. With the rise of these digital assets, it’s crucial to understand how to create a digital will and the benefits and challenges that come with it. Let’s explore how to make a digital will, its key advantages, and potential drawbacks.

What are Digital Will, and Why Should I Care?

A digital will is a legal document that outlines how a person’s digital assets, such as social media accounts, online banking, emails, and digital files, should be managed or distributed after their death. It is important because it ensures these assets are properly handled, preventing unauthorized access or loss. With more individuals storing vital information online, digital wills protect personal data and ensure that loved ones can access necessary accounts or content.

How to Create a Digital Will?

Creating a digital will involves a few essential steps to ensure your digital assets are properly managed after your death. Below are the key steps to follow when setting up a digital will:

1. List Your Digital Assets: The first step is identifying your digital assets. These include social media accounts, email accounts, online banking, cloud storage, cryptocurrency, and digital files.
2. Appoint a Digital Executor: Designate someone who will be responsible for managing your digital assets. This person should be someone you trust to follow your wishes and who is capable of handling digital platforms.
3. Provide Instructions for Each Asset: Clearly outline what should happen to each digital asset. For example, state whether an account should be deleted, transferred, or archived. Include login details for each account, which are stored securely.
4. Include Digital Will Provisions in Your Traditional Will: Consult a lawyer to add a section for your digital assets in your traditional will. This ensures your digital will is legally recognized and aligns with the overall estate plan.
5. Store Your Will Safely: Ensure that your digital will and access credentials are stored securely in a location where your executor can retrieve them when necessary. Services like password managers or legal document storage can be useful.

How to Leave a Digital Will

In order to leave a digital will, follow these important steps to ensure your digital assets are properly managed after your passing:

1. Prepare Your Digital Will: Create a detailed list of all your digital assets, including social media accounts, online subscriptions, email accounts, and cryptocurrency. Include instructions for how each asset should be handled.
2. Store Your Will Securely: Make sure your digital will is stored in a secure and accessible location. This can be with your attorney, in a secure online vault, or in a safe deposit box. Ensure that your executor knows how to access it.
3. Share Access Information: Provide your appointed digital executor with necessary access information, including login credentials, encryption keys, or passwords. Make sure this data is updated regularly to avoid any issues.
4. Inform Your Executor and Loved Ones: Notify your digital executor and close family members about the existence of your digital will and the instructions it contains. This ensures that they know your wishes and can execute them accordingly.

What Should Be Included in a Digital Will?

A digital will should include the following key components to ensure comprehensive management of your digital assets:

1. List of Digital Assets: Include all relevant online accounts such as email accounts, social media profiles, online banking, cryptocurrency, and cloud storage services.
2. Login Credentials: Provide usernames, passwords, and any security keys or two-factor authentication information for your accounts.
3. Instructions for Each Asset: Specify what should happen to each digital asset. For example, you may want certain accounts deleted, others archived, or passed on to a family member.
4. Appointed Digital Executor: Name a trusted individual who will carry out the instructions in your digital will, manage the assets, and ensure your wishes are followed.
5. Legal Authorization: Grant your digital executor the legal authority to access your digital assets and accounts, as some services may require explicit permission for posthumous access.
6. Backup Storage Plan: Identify how to handle backups of important files and documents, whether stored on cloud services or external hard drives.
7. Digital Legacy Instructions: Outline what to do with social media accounts, memorialize, delete, or transfer, and provide details for digital media, like blogs or websites.

What are the Considerations for a Digital Will?

When creating a digital will, several important factors need to be considered:

1. Legal Validity: Ensure your digital will complies with state or country laws, as not all jurisdictions recognize digital wills separately. Consulting with an attorney can help verify its legality.
2. Access to Digital Assets: Consider how your digital executor will access your digital assets. Provide clear instructions on login credentials, two-factor authentication, and any encryption keys.
3. Privacy Concerns: Be mindful of privacy issues, particularly with sensitive personal data or financial accounts. Decide how much information to share and with whom.
4. Executor’s Technical Knowledge: Appoint a digital executor who is tech-savvy and capable of managing online accounts and navigating digital platforms to fulfill your instructions.
5. Service Provider Policies: Review the terms of service agreements for each digital platform, as some may restrict or prohibit posthumous access to accounts. Plan accordingly with alternative solutions, if necessary.
6. Regular Updates: Digital assets and accounts change over time. Ensure your digital will is regularly updated to reflect new assets, account changes, or password updates.
7. Security of Information: Consider how to securely store your digital will, passwords, and sensitive information. Utilize encrypted storage or legal services that can securely keep this information.

Differences between Digital Wills vs. Traditional Wills

When considering estate planning, it’s important to understand the key differences between digital wills and traditional wills. Each serves a specific purpose in managing assets, but they differ in the types of assets they cover, how they are executed, and the roles they assign. Below are the main differences between digital wills and traditional wills:

1. Assets Covered:
   A digital will focuses on digital assets such as social media accounts, online banking, cryptocurrency, and digital files. In contrast, a traditional will primarily handles physical assets like real estate, personal property, and financial accounts.
2. Execution Process:
   A digital will may involve specific procedures for accessing digital accounts and passwords, with legal recognition varying by jurisdiction. In contrast, a traditional will requires formal procedures like witnesses and notarization, with consistent legal recognition across most areas.
3. Executor Role:
   A digital will requires a digital executor with the technical knowledge to manage online accounts and digital data. In contrast, a traditional will requires an executor who primarily manages physical assets, financial distribution, and legal proceedings.
4. Security and Privacy:
   Digital data will involve sensitive online data requiring strong security measures like encryption and password management. In contrast, traditional data generally focuses on physical documents and assets with fewer digital security concerns.
5. Storage:
   A digital will is typically stored electronically in secure digital locations such as password managers or encrypted files. In contrast, a traditional will is usually kept as a physical document, often in a safe or with an attorney.

Pro: What are the Benefits of a Digital Will?

A digital will offers several advantages for managing your online assets and ensuring your digital presence is handled according to your wishes. Below are the key benefits of having a digital will:

1. Efficient Management of Digital Assets: A digital will ensures that online accounts, digital files, and virtual assets are handled according to your wishes.
2. Prevents Unauthorized Access: A digital document will outline access credentials and instructions to prevent unwanted individuals from accessing sensitive information.
3. Simplifies Digital Asset Transfer: A digital will provides clear instructions on transferring or managing digital assets, making it easier for your loved ones to handle after your passing.
4. Protects Online Legacy: It helps manage social media profiles, blogs, and websites, preserving or archiving your online presence according to your wishes.
5. Customizable and Updatable: A digital will can be easily updated to reflect changes in your digital assets, passwords, or online accounts.
6. Appoint a Specialized Digital Executor: You can designate a digital executor who is knowledgeable about managing online platforms and digital data, ensuring proper execution of your wishes.
7. Enhanced Privacy and Security: With proper encryption and storage, a digital will keeps sensitive digital information secure from unauthorized access or breaches.
8. Complements a Traditional Will: A digital will complements a traditional will by focusing on online assets that may not be covered in physical estate planning documents.

Cons: What Are the Drawbacks of a Digital Will?

While a digital will offers many benefits, there are some potential drawbacks to consider when deciding if it’s the right choice for managing your online assets. Here are the key disadvantages:

1. Limited Legal Recognition: Many jurisdictions do not legally recognize digital wills, making them difficult to enforce without a corresponding traditional will.
2. Potential Security Risks: Storing sensitive information like passwords and access credentials can pose a security risk if not properly encrypted and secured.
3. Complexity in Execution: A digital will may require more technical expertise from the executor to manage online accounts and digital assets, which could be challenging if they are not tech-savvy.
4. Service Provider Restrictions: Some digital platforms have policies that limit or prevent posthumous access to accounts, even with a digital will in place.
5. Frequent Updates Required: Digital assets and accounts can change frequently, requiring regular updates to the will to ensure accuracy and relevance.
6. Privacy Concerns: Including detailed account information and passwords in a digital will can raise privacy concerns, especially if not securely stored or accessed by unauthorized individuals.
7. Dependence on Technology: A digital will relies on technology for storage and execution, which could be problematic in case of technical failures or loss of access to secure storage systems.

What is Considered as a Digital Asset in a Will?

A digital asset in a will is any form of online or electronic property with personal, financial, or sentimental value. This can include:

1. Online Accounts: Social media profiles, email accounts, and cloud storage services.
2. Financial Accounts: Online banking, cryptocurrency wallets, and investment platforms.
3. Digital Media: Photos, videos, and documents stored on cloud services or personal devices.
4. Intellectual Property: Websites, blogs, domain names, and digital content you own or manage.
5. Online Subscriptions: Paid subscriptions like streaming services, online publications, or digital memberships.
6. E-commerce Assets: Digital storefronts, like accounts on e-commerce platforms and related payment systems.

Can You Inherit Digital Assets?

Yes, you can inherit digital assets, but the process depends on the type of asset and the platform’s policies. Some digital assets, such as cryptocurrency or intellectual property, can be passed on to beneficiaries like physical assets. However, many online platforms, like social media or email services, have specific terms of service that may restrict transferring ownership after death. In these cases, access to the account may be granted, but full ownership may not transfer. Including digital assets in a will with clear instructions and appointing a digital executor can help ensure these assets are properly handled.

Who Gets Access to Your Digital Assets Account When You Are Dead?

The person who gets access to your digital assets account when you are dead is typically your appointed digital executor or a person named in your will. In cases where you have not designated a digital executor, access may depend on the terms of service of each digital platform. Some platforms allow authorized individuals, such as family members or legal representatives, to request access through specific procedures, while others may restrict or delete accounts entirely after death. Including clear instructions in your will and appointing a digital executor ensures your digital assets are managed according to your wishes.

What Happens to Digital Assets on Death?

What happens to digital assets upon death depends on the type of asset and the platform’s policies. In many cases, digital assets are either passed to a designated beneficiary, managed by a digital executor, or restricted by the platform. For instance:

1. Social Media Accounts: Platforms like Facebook allow accounts to be memorialized, while others, like Twitter, may delete the account after a period of inactivity.
2. Financial Accounts: Beneficiaries can inherit cryptocurrency and online banking, provided they have the necessary access credentials and the digital will outlines clear instructions.
3. Email and Cloud Storage: Access to email and cloud accounts may be granted if you’ve appointed a digital executor or left specific instructions. Otherwise, the accounts could be deactivated based on inactivity or platform policies.
4. Online Subscriptions: These typically expire or are canceled upon death unless a beneficiary takes over the account.

When Someone Dies What Happens to the Money in Their Account?

When someone dies, the money in their bank or financial accounts is typically handled as part of their estate. Here’s what happens:

1. Probate Process: The money in the deceased’s account is frozen until the probate process begins. During probate, the court supervises the distribution of assets according to the deceased’s will or state laws if no will exists.
2. Transfer to Beneficiaries: When the account has designated beneficiaries or is set up as a payable-on-death (POD) or transfer-on-death (TOD) account, the money bypasses probate and is transferred directly to the named beneficiaries.
3. Joint Accounts: For joint accounts with rights of survivorship, the surviving account holder typically gains full access to the money without going through probate.
4. Debt Settlement: Before distribution, the money in the account may be used to pay off any outstanding debts or taxes the deceased owes.

What is a Digital Executor in a Will?

A digital executor in a will is a person appointed to manage and oversee the handling of a deceased individual’s digital assets, such as social media accounts, online banking, emails, and cloud storage. Unlike the traditional executor of estate, who manages physical and financial assets, a digital executor focuses specifically on the deceased’s online presence and digital property. The digital executor ensures that the instructions in the digital will are followed, such as closing accounts, transferring digital assets, or preserving certain information. This role is crucial in today’s digital age, where many assets exist online and require special handling.

What Types of Property Can a Digital Executor Distribute?

A digital executor can distribute various types of digital property, ensuring that online assets are managed or transferred according to the wishes laid out in a digital will. These include:

1. Online Financial Accounts: Digital executors may distribute assets like cryptocurrency wallets, online investment portfolios, and PayPal accounts.
2. Social Media Accounts: The executor can close, memorialize, or transfer social media accounts such as Facebook, Twitter, and Instagram based on the will’s instructions.
3. Email Accounts: Email accounts, often used to manage many online services, can be accessed and closed or maintained according to the digital will’s directions.
4. Digital Media: Files such as photos, videos, music, and documents stored in cloud services or personal devices can be transferred or shared with beneficiaries.
5. Intellectual Property: Websites, blogs, domain names, and other online businesses or digital content can be passed on to heirs or managed as instructed.
6. Online Subscriptions: The digital executor may cancel or transfer subscriptions to services such as streaming platforms, digital memberships, or other paid services.

How is a Digital Executor Different from a Will Executor?

A digital executor differs from a traditional will executor in several key ways:

1. Scope of Responsibilities: A digital executor specifically handles the deceased’s digital assets, such as online accounts, email, cryptocurrency, and cloud storage. In contrast, a will executor is responsible for managing and distributing physical and financial assets like real estate, bank accounts, and personal belongings.
2. Technical Expertise: A digital executor often requires more technical knowledge to navigate various online platforms, recover passwords, and manage digital security protocols. The traditional will executor focuses on tasks like filing documents with the court, managing probate, and overseeing the distribution of physical assets.
3. Legal Recognition: In many jurisdictions, the role of a digital executor is not yet formally recognized in the same way as a traditional will executor. While a will executor’s duties are well-established under law, digital executors often need special authorization or legal documents to access certain accounts.
4. Assets Managed: The digital executor handles digital property such as social media accounts, online subscriptions, and digital media, while a will executor deals with assets like homes, vehicles, investments, and personal effects.

What Other Duties Does a Digital Executor Have Beyond Distribution?

A digital executor has several duties beyond simply distributing digital assets. These include:

1. Securing Digital Accounts: Ensuring that accounts are protected from unauthorized access, especially during the probate process.
2. Closing Online Accounts: Deleting or deactivating accounts that are no longer needed, such as social media profiles, email addresses, or online subscriptions.
3. Managing Digital Content: Preserving, archiving, or transferring important digital files, photos, videos, and documents to beneficiaries.
4. Canceling Digital Subscriptions: Terminating recurring payments for online services such as streaming subscriptions, software licenses, and memberships.
5. Handling Online Businesses: Managing or transferring ownership of any digital businesses, blogs, websites, or e-commerce platforms operated by the deceased.
6. Communicating with Service Providers: Contacting online platforms, cloud storage services, or digital asset companies to inform them of the account holder’s death and fulfill any legal or procedural requirements.

Can I Limit My Digital Executor’s Access?

Yes, you can limit your digital executor’s access. You can specify which digital assets the executor can manage and restrict their access to certain accounts or sensitive information. This can be done by providing detailed instructions in your digital will and designating specific accounts for them to handle while excluding others. You can also use encryption or secure storage for certain passwords, ensuring the digital executor can only access what is necessary to fulfill your wishes. This allows you to maintain control over sensitive assets and decide how much authority your digital executor has.

How Do I Nominate a Digital Executor in My Will?

Nominating a digital executor in your will is a crucial step to ensure that your digital assets are properly managed after your death. Follow these steps to successfully appoint a digital executor:

1. Consult an Attorney: Work with an estate planning attorney to ensure the nomination of a digital executor is legally valid and aligns with local laws. Not all jurisdictions formally recognize digital executors.
2. Include a Specific Clause: Add a clear clause in your will that designates a specific individual as your digital executor. This clause should outline their role and responsibilities in managing your digital assets.
3. List the Digital Assets: Provide a comprehensive list of the digital assets you want your digital executor to manage, such as social media accounts, cryptocurrency, email, and cloud storage.
4. Grant Legal Authority: Ensure the will grants the digital executor the legal authority to access your online accounts and manage your digital assets. Include provisions that specify any limitations or special instructions regarding their access.
5. Provide Access Information: Consider giving your digital executor access to login credentials, passwords, and encryption keys through a secure document or a password manager to enable them to fulfill their role effectively.
6. Review Regularly: Update the digital executor designation and asset list periodically to reflect any changes in your digital presence or accounts.