Digital Wills: how to protect your online assets.

In today’s digital age, many people have valuable online assets, from social media accounts to cryptocurrency holdings. Protecting these digital assets is as important as safeguarding physical possessions. Drafting a digital will ensures that your online presence is managed and your digital wealth is passed on according to your wishes.

A digital will is a document that specifies how you want your digital assets to be managed and distributed after your death. In this blog, we’ll take you through a step-by-step guide on how to protect your online assets through a digital will and explain the legal considerations involved. Here’s a step-by-step guide on how to protect your online assets through a digital will.

Identification of your digital assets.

The first and most critical step in creating a digital will is identifying all your online assets. Digital assets can vary widely, and they include:

Social Media Accounts (Facebook, Twitter, Instagram, LinkedIn, etc.)

Email Accounts (Gmail, Outlook, Yahoo)

Cryptocurrency Holdings (Bitcoin, Ethereum, Ripple, wallets, etc.)

Online Bank and Investment Accounts

Subscription Services (Netflix, Amazon Prime, Spotify)

Cloud Storage (Google Drive, Dropbox, iCloud)

Digital Files (photos, videos, music, documents, and intellectual property)

E-Commerce Accounts (Amazon, eBay, Etsy)

Domain Names and Websites

Create a comprehensive list of these digital assets, including usernames, passwords (stored securely), and specific instructions for each. Consider using a digital asset inventory to catalog all your accounts in one place. This will make it easier for your executor to manage these assets after you pass away.

Appoint a digital executor.

Just as with physical assets, you need someone to manage your digital estate. This person is called a digital executor. A digital executor is responsible for managing, distributing, or deleting your online accounts and digital possessions according to your wishes.

While digital executors may not yet have formal legal standing in many jurisdictions (including India), it is still crucial to appoint someone you trust to take on this role. This person should be tech-savvy and capable of handling sensitive information, as they’ll need to navigate different platforms and possibly retrieve important financial or personal data. In India, a digital executor may not have legal recognition under the Indian Succession Act, 1925. However, including specific instructions in your will for a digital executor can help ensure that your online assets are handled according to your wishes.

Specify, How to Manage Social Media and Online Accounts.

Many social media platforms and online services have their own policies regarding what happens to an account after the account holder dies. It’s important to decide how you want your accounts to be handled.

For example:

Memorialization: Platforms like Facebook offer an option to memorialize an account after death, allowing your profile to remain visible as a tribute to your life.

Account Deletion: You might prefer certain accounts (such as Twitter or Instagram) to be deleted entirely.

Data Transfer: Ensure instructions are clear on whether any valuable data (such as emails, digital photos, or files) should be transferred to specific beneficiaries.

Some platforms, such as Google, offer an Inactive Account Manager feature, allowing you to set preferences for what happens to your account if it becomes inactive for a specified period.

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Handle Cryptocurrencies and Digital Financial Accounts

Cryptocurrency holdings present a unique challenge for estate planning. Cryptocurrencies like Bitcoin and Ethereum are decentralized, meaning there is no central authority that can help retrieve the assets if the private keys are lost. To ensure your digital wealth is accessible to your heirs:

Store private keys securely: The most critical information for cryptocurrency is the private key or wallet password. Without it, accessing the cryptocurrency is impossible. Store these keys securely, perhaps using a password manager or a physical vault.

Provide Instructions for Access: Make sure to provide clear, secure instructions on how to access your cryptocurrency wallets, including passwords and any two-factor authentication information.

As cryptocurrencies grow in popularity, legal frameworks governing their inheritance are still in development. It’s important to keep abreast of any changes in cryptocurrency regulations in India to ensure your digital assets are managed properly.

Safeguard Digital Intellectual Property.

If you own intellectual property in digital form—such as blogs, e-books, digital artwork, or domain names—you should include these in your digital will. Intellectual property can have substantial financial or sentimental value, so it’s important to specify who will inherit these assets. Your instructions could include:

Management or Inheritance: Decide whether a loved one should take over these assets, such as continuing to manage a blog or website.

Monetization or Sale: You may want to sell these assets or intellectual property, especially if they generate income.

Ensure you clarify intellectual property rights in your digital will, as they may require proper registration or licensing for the beneficiary to continue using them.

Secure Passwords and Access Information.

One of the most challenging aspects of managing digital assets after death is accessing the various accounts. To help your digital executor manage your online estate efficiently, consider the following options for securely storing passwords:

Password Managers: Use a trusted password manager, such as LastPass or Dashlane, to store all your login information securely. Provide your executor with instructions on how to access this password manager.

Physical Storage: Alternatively, you can write down your passwords and store them in a secure physical location, such as a safety deposit box.

Do not include passwords directly in your will, as wills become public documents during probate. Instead, indicate where and how passwords are securely stored.

Include Legal Provisions for Digital Assets.

While laws regarding digital assets in India are still evolving, some legal frameworks may already apply to certain digital assets. For instance:

Indian IT Act, 2000: This law governs issues related to data protection and privacy. Ensure your digital executor handles your personal information and data in accordance with the law.

Intellectual Property Laws: Digital assets like e-books, music, and digital art are subject to intellectual property laws. Ensure that ownership and rights transfer properly to your beneficiaries.

Consult with a lawyer to ensure your digital assets are covered under the latest legal provisions and that your will is drafted accordingly.

Once you’ve drafted your digital will, you must ensure it is legally binding. Here are a few steps to follow.

Consult a Lawyer: Work with an estate planning lawyer who understands digital assets. This ensures your will is legally sound and comprehensive.

Sign and Witness: As with any will, your digital will must be signed and witnessed according to the Indian Succession Act, 1925. This will validate your instructions regarding digital assets.

Just like a traditional will, regularly updating your digital will is crucial. This is particularly important as you may acquire new digital assets, such as cryptocurrencies or online businesses. Passwords and security measures often change, and online platforms might update their policies on managing accounts after death. To make your digital will legally binding, consult an estate planning lawyer knowledgeable about digital assets. Ensure the will is signed and witnessed, following the Indian Succession Act, 1925.

Lastly, communicate your wishes to loved ones and your digital executor. Clear communication about your digital estate prevents confusion and disputes later on. In a world where digital assets are increasingly valuable, protecting them is essential. A well-drafted digital will safeguard your online presence, ensuring your digital wealth is managed and distributed according to your wishes. Take control now—identify your assets, appoint a digital executor, and create a comprehensive digital will to secure your online legacy.