Investors' Chronicle quotes Natalie Butler on how to pass on your digital assets
Natalie Butler, Senior Associate, shares insights with Investors' Chronicle on the complexities of managing digital assets in estate planning.
As digitisation becomes prevalent, traditional paper trails for financial assets are disappearing, complicating estate administration. Natalie explains that digital assets encompass a wide range of possessions accessed via digital devices and third-party platforms, including cryptocurrency, online bank accounts, and cloud-stored photos.
It's tricky because there's no precise legal definition of a digital asset.
To prepare for estate planning, Natalie suggests creating a digital inventory to catalogue assets and ensure executors are aware of them. However, she warns against sharing passwords due to legal restrictions under the Computer Misuse Act 1990. For assets like cryptocurrency and social media accounts, Natalie advises checking platform terms for legacy provisions, as accessing these without prior authorisation can be complex and costly.
Natalie also recommends considering a digital executor for managing significant digital assets, particularly for online businesses. This role, while not officially recognised, can be crucial for maintaining continuity in digital operations.
An online business could suffer hugely from the sudden disappearance of the person running it, so having someone who can pick up the reins quickly is helpful.
The evolving legal landscape poses additional challenges, especially with cryptocurrencies and non-fungible tokens. A bill in the House of Lords aims to classify crypto tokens as personal property, adding pressure on executors to manage these volatile assets. Natalie emphasises the importance of seeking professional advice, saying:
There's nothing an executor can do about [market volatility], but they can show they've taken the proper advice and steps in the same way you would do with a property portfolio or a share portfolio.
Read the full piece in Investors' Chronicle here.
