In an increasingly technological world, more and more people are investing in or creating digital assets. These assets can include ownership of NFTs or cryptocurrency, online businesses in platforms such as Etsy or Shopify, influencer accounts on Instagram or Facebook or many other digital assets.
While many people have invested in or own various forms of digital assets, few have considered how they will be passed on. Therefore it is important to consider what will be passed on, how executors can access these assets and who will ultimately receive these digital assets.
What assets should be passed on?
The short answer is anything with financial or sentimental value. Hardrives of family photos, investment accounts, online businesses and tradable assets like cryptocurrency can all be passed on through a will.
Consider the format of different assets. A hard drive may be accessible without a password, but may face physical damage. Alternatively cloud storage may be more resilient, but require a password or continuing fees. How will these passwords be shared and fees be paid in the event of your death?
How will assets be accessed?
When dealing with digital assets, you have to consider carefully how the assets will be discovered and ultimately accessed. If the assets are on a harddrive, where is the harddrive stored? How does your executor to know which harddrive to access? How will your executor access your login information? Does your executor know which accounts to access?
All of these matters should be considered carefully to ensure that your executors can access your digital assets.
Who will receive your digital assets?
Some assets, such as cryptocurrency, can be held and sold by anyone. Other assets, like an Etsy business, need active management to see value from the account. Is your beneficiary willing to take on the business or should another person be given a share of the asset in exchange for management?
Consider how assets should be bundled. That Shopify account may require access to the social media presence of a related Instagram account. These both may depend on a contract with an existing social media manager. In any case, consider if one asset depends on a second.
The best way to protect your digital assets for the next generation is to work with a lawyer.
Contact us at (647)-494-9599 or info@law365.ca to discuss estate planning today.
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