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Expert’s warning to update your will with vital piece of information that is often missed
While most of us don’t like to think about death, it’s important to have a will in place to decide what will happen to your belongings when you are no longer here.
Physical assets like houses and money are always included, but there is one thing that’s often forgotten and it’s becoming increasingly important in our tech-driven world – digital assets.
Warning to add digital assets to your will
Alex Wilson, from memorial service company Affordable Urns, has warned that digital assets can be just as valuable as physical ones, so should be accounted for.
“We often see problems arise from outdated or incomplete wills,” he says. “Digital assets have made estate planning more complicated, and most people are unprepared for it.”
Digital assets are any wealth you hold online, such as cryptocurrencies, NFTs, digital payment accounts like PayPal and Venmo, online investment accounts and virtual businesses.
Even things like loyalty programmes, airline miles, subscription services and shopping sites with store credit are all digital assets that belong to you.
Digital assets could go to the wrong person
When you die, all of these things need to be passed on to somebody else, and they could go to the wrong person if not mentioned in your will.
Anything that isn’t accounted for will be residue of your estate, a term that describes the remaining assets left in an individual’s estate after specific gifts and expenses.
People usually add a residuary clause which sets out who will inherit the residue of estate, often a spouse or charity.
However, most people want digital assets with large monetary value, such as big cryptocurrency earnings or NFTs, to be left to a specific person.
Legal issues over digital assets can arise
On top of that, privacy laws and regulations can sometimes make it difficult for families to access online accounts and transfer ownership into their own name.
“Even if your family knows your passwords, many websites need legal papers to transfer ownership,” Wilson adds.
Often, families may be unaware of the extent of your digital assets, and they could be overlooked or lost entirely if not mentioned.
Adding them to your will makes things easier for your family during a difficult time, while ensuring you protect the legacy you have built.
Remember, wills aren’t just for elderly people either. If you own assets at any age, either physical or digital, it’s a good idea to write a will so you know your belongings will always be safe.
