What actually happens to your crypto when you die?

You've got crypto, a cloud full of photos, and a couple of social media accounts. But what happens to all of it when you're gone? The concept of inheritance is undergoing a profound transformation.

Traditionally, estate planning has focused on tangible assets like property, bank accounts and shares. But in the digital age, our lives and our legacies are increasingly shaped by what we can't touch: our digital assets.

From cryptocurrency wallets and non-fungible tokens (NFTs) to social media accounts and cloud storage of family photos, digital holdings now form a substantial part of our personal wealth and identity.

Yet, across Australia, the UK, and the US, estate law is only just beginning to catch up, each with varying degrees of reform and recognition.

A digital legacy is not just about financial value; it's about control, privacy, and memory. And without proper planning, much of it risks becoming inaccessible, or lost, after death.

What is a digital asset?

Digital assets encompass far more than most people assume. They include:

• Financial assets: cryptocurrency wallets, trading accounts, online bank accounts, PayPal balances, and digital reward points.
• Intellectual property: monetised blogs, YouTube channels, online courses, eBooks, and domain names.
• Personal data and media: emails, digital photo and video libraries stored in iCloud or Google Drive, subscription services, and personal documents.
• Social and professional accounts: Facebook, Instagram, LinkedIn, X (formerly Twitter), TikTok, dating profiles, and professional portfolios.

In estate administration, the legal treatment of these assets is unclear.

Many service providers operate under foreign jurisdictions and are not legally bound to co-operate with local executors or administrators. Without clear planning and documentation, families may face disputes, delays, and unnecessary emotional strain.

The legal lag

In Australia, there is no unified legal framework governing the posthumous handling of digital assets.

While Federal and State jurisdictions provide mechanisms for managing physical and financial property, executors often face hurdles when trying to access the deceased's digital footprint, especially when overseas-based service providers, like Meta and Google, are involved.

Australia currently lacks specific legislation dealing with the management of digital and social media accounts after death. As a result, control over these accounts typically remains with the platform providers, leaving grieving families with little recourse when access is denied.

While the US has enacted legislation such as the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) to clarify fiduciary access, and UK courts have begun developing precedent under common law principles, Australia is still catching up.

Few wills include clauses dealing with digital assets. Fewer testators provide secure, updated inventories of online accounts, passwords, or digital asset storage.

This creates a complex legal vacuum that can leave families shut out of sentimental or financially valuable digital content.

Why you can't afford to ignore digital assets

Cryptocurrency alone is a compelling reason to act. With billions in crypto assets now in circulation, and no central authority to recover access, failure to document private keys or share access credentials can result in permanent loss.

Social media platforms, cloud storage services, and online businesses also raise critical questions: Who controls a deceased person's digital photos on Google Drive? Can an executor manage a profitable eBay store? What happens to an Instagram account with thousands of followers? The answers are often unclear, and vary by jurisdiction and platform policy.

Five steps to protect your digital legacy

It's clear that estate planning needs to evolve. Here are five steps individuals can take, regardless of jurisdiction, to ensure digital assets are not overlooked:

1. Create an inventory of your digital assets

Include all accounts, devices, email addresses, cryptocurrencies, online businesses, and cloud storage locations.

2. List access details securely

Use a digital password manager or secure legal document to store passwords and recovery methods, ensuring your executor can access them.

3. Appoint a digital executor

Some jurisdictions recognise this role officially; others permit its inclusion in a will as an informal but enforceable instruction.

4. Include specific clauses in your will

Be explicit about your wishes for digital content: deletion, memorialisation, or transfer.

5. Review terms of service

Understand the policies of platforms you use. Some, like Facebook and Apple, allow users to pre-authorise post-death access or nominate a legacy contact.

Legislative change is coming

Law reform bodies in Australia and other common law jurisdictions are increasingly turning their attention to the challenges posed by digital estates.

Although no uniform legislative solution has yet emerged, there is growing recognition that clearer legal frameworks are needed to define executor rights and service provider obligations.

In the meantime, as our lives migrate online, so too must estate planning. A modern will must not only distribute wealth but preserve access to identity, creativity, and legacy.

Whether you're managing millions in digital assets, or a trove of priceless family memories stored in the cloud, it's time to rethink what we leave behind, and who we empower to manage it.

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