Digital Asset Solutions
Digital Assets – An Overview
​
Although the term digital asset can be used broadly, for estate and succession planning purposes it is best understood as an asset that exists exclusively in electronic form, with little or no physical evidence of ownership and which is accessed or controlled digitally.
​
A key characteristic of many digital assets is that ownership or control is determined not by identity alone, but by access credentials—such as private keys, passwords, or control of an account—without which the asset may be permanently inaccessible.
What Counts as a Digital Asset?
A clear example of a digital asset is cryptocurrency, such as Bitcoin. A Bitcoin exists on a decentralised blockchain and is not recorded in the name of an identifiable individual or institution. Control rests entirely with whoever holds the relevant private keys. If those keys are lost, the asset is effectively irrecoverable.
​
By contrast, an online bank account is not generally treated as a digital asset for estate planning purposes. Although it may be managed online, ownership is ultimately recorded by a regulated institution, and access can usually be restored through conventional identification procedures.
​
Other common examples of digital assets include:
​
-
Cryptocurrencies and digital wallets
-
Online payment balances (such as PayPal or similar platforms)
-
Domain names, which may have significant commercial value
-
Monetised social media accounts or online brands
-
Digital intellectual property, including websites, content libraries, and licensing rights
-
Gaming assets or in-game currencies
-
Certain digital media entitlements, subject to provider terms
​
In some cases, the value of a digital asset may be obvious and monetary. In others, the value may be reputational, commercial, or personal.
​
Why Digital Assets Require Planning
​
Most digital assets are protected by layers of authentication, such as usernames, passwords, email verification, two-factor authentication, or recovery questions. Without access to these credentials, accounts may be permanently locked.
​
In addition, the very existence of some digital assets may be known only to the individual who owns or controls them. Unlike physical property or bank accounts, there is often no central register that executors can consult.
This creates real risk. Without proper planning:
​
-
Cryptocurrencies may be lost forever
-
Online accounts may remain inaccessible or unmanaged
-
Domain names may lapse through non-payment of renewal fees
-
Monetised social media or online businesses may lose value rapidly
-
Personal data and content may remain online indefinitely, contrary to wishes
​
Digital wealth can therefore disappear far more easily than traditional assets.
​
Your Digital Inventory
​​
Effective digital asset planning begins with identification. A clear and regularly updated digital inventory should record:
​
-
The existence of digital assets
-
Where they are held
-
How access may be obtained
-
Any specific wishes relating to their use or disposal
​
While spreadsheets or written lists can be used, they offer limited security. Many people now use encrypted password management systems or secure digital vaults to store access credentials. These can be structured so that nominated individuals gain access only upon death or incapacity.
​
For security reasons, access details should never be written directly into a will, which may become visible to multiple parties during administration. A professional Digital Trustee avoids this pitfall.
​
It is sensible to appoint a Digital Assets Trustee or Digital Executor, or to ensure that at least one executor has the necessary digital literacy.
The Legal Landscape
There is currently no uniform legal regime governing the succession of digital assets. Whether an asset can be transferred, accessed, or inherited often depends on the terms and policies of the relevant service provider.
​
For example, many digital media accounts operate on a licence basis rather than true ownership. While devices themselves may pass under a will, the associated content may not. Other platforms allow accounts to be memorialised, transferred, or closed, but only if appropriate authority is established.
​
This lack of consistency makes forward planning essential.
Succession Planning for Digital Assets
As part of broader estate planning, careful consideration should be given to:
​
-
Which digital assets have monetary or strategic value
-
Which have sentimental or reputational importance
-
Which should be transferred, managed, or closed on death
-
Who should have authority to deal with them
​
This can be addressed through carefully drafted will provisions, separate letters of wishes, or trust-based arrangements where appropriate.
The Importance of a Digital Assets Trustee or Executor
It is sensible to appoint a Digital Assets Trustee or Digital Executor, or to ensure that at least one executor has the necessary digital literacy.
​
This role may include:
​
-
Locating and securing digital assets
-
Managing or transferring cryptocurrencies
-
Maintaining or realising online businesses or domains
-
Closing or memorialising social media accounts
-
Ensuring digital legacies are dealt with efficiently and discreetly
For individuals holding significant digital value—particularly cryptocurrency or online commercial assets—this role can be critical. Without the right skills and authority, even substantial digital wealth can be rendered worthless.
​
In more complex cases, digital assets may be held within trust structures specifically designed to provide continuity, control, and security. For anyone holding more than £50,000 in digital assets, a trust structure should be urgently considered immediately if not already in place – once a person dies it may be well nigh impossible to gain access to digital assets if even the slightest error exists in the login credentials or 2FA protocols.
Why Digital Asset Planning Is Now Essential
Digital wealth is no longer niche. Increasingly, individuals hold meaningful value online, often without fully appreciating how fragile that value can be in the absence of planning.
​
Digital asset planning ensures that:
​
-
Value is not lost through inaccessibility
-
Wishes are respected
-
Executors are empowered, not obstructed
-
Digital legacies are preserved or concluded appropriately
As digital holdings continue to grow, this area of planning is rapidly becoming as important as traditional asset succession.
Summary
Digital assets can be among the most vulnerable components of an estate. Without clear planning, they are easily lost, overlooked, or mishandled. By identifying digital assets, documenting access arrangements, and appointing appropriate trustees or executors, it is possible to safeguard both financial value and personal legacy in an increasingly digital world.
​