New digital assets legislation

Once passed, it will provide legal recognition and protection for digital assets, including cryptocurrencies and other types of digital property. Here we answer some common questions about digital assets. 

 

Personal property is usually something you possess like a house, a legal right, or an obligation like a debt. Things like cryptocurrency, digital art, photos, videos and social media content don’t really fit these definitions. However, digital assets can still have significant financial and emotional value. 

 

Almost six out of 10 people now agree it’s important to include digital assets in their Wills. That might include access to online bank accounts, cloud storage, passwords for social media accounts, and emails. 

 

When passed, the Bill will make the requirements much clearer. Individuals and professionals won’t have to rely on their own knowledge. It will provide legal measures to distribute or safeguard these assets when someone dies. It will protect digital legacies in the same way as property. If necessary the courts can decide how to resolve complex cases, providing further clarity over time. 

 

America, Australia, and Canada have developed their own digital asset rules. However, the UK’s progress towards the legal recognition of digital assets in the Bill leads the way. This legislation is at the forefront of international progress towards recognition of digital assets in estate law. 

 

Dealing with email accounts, photos, and cryptocurrency accounts is challenging. Accessing digital assets after someone dies can involve a lengthy administration process. Information about digital assets can provide evidence when there’s a dispute. The Bill will help resolve questions of ownership but might not improve access to the assets for executors and beneficiaries. Will writers help people by advising how to clearly, simply and securely describe and access digital assets. 

 

The Bill is helping to raise awareness, so people understand they own digital assets they should include in their estate. This isn’t only a problem for the ‘digitally native’ generations born since the late 1990s. Older people now make arrangements to pass on account passwords stored on smartphones and access to social media accounts. Many actively make sure their children can access their digital information when they need to. 

 

Of course, simply writing down passwords and access information and leaving the details for your executors can involve risks. You might change account information and providers could change access rules. Not all will allow someone else to access your accounts, even after your death. It’s important to check. 

 

Digital vaults (also known as cyber or electronic vaults) provide secure online storage to protect your digital assets. Like a safety deposit box at a bank, they can help protect your digital assets. You can store passwords, confidential documents, and sensitive data. They use the latest technology to keep your information safe.