Digital assets are a crucial part of life but In India the legal framework about them is still developing. Individuals therefore must take proactive steps to ensure their online investments, virtual belongings, and digital legacies are passed on to their intended beneficiaries.
What is a digital asset?
Digital assets can include a wide range of items: Email accounts, social media profiles, digital photos and videos, online banking accounts, cryptocurrency wallets, domain names, and even digital art or non-fungible tokens (NFTs). Some assets can represent substantial financial investments or irreplaceable memories.
Steps for planning the inheritance of digital assets:
Create an inventory: Make a comprehensive list of all your digital assets, including account details and access information. Store this information securely, perhaps with a trusted lawyer or in a digital vault.
Review terms of service: Understand the policies of each online service regarding account inheritance or transfer. Some platforms, like Facebook and Google, allow users to designate legacy contacts.
Include digital assets in your will: Explicitly mention your digital assets in your will and specify how you want them to be handled. This can provide legal clarity for your heirs.
Consider a digital executor: Appoint someone technology savvy to manage your digital legacy. This person can work alongside your traditional executor to ensure your online presence is managed according to your wishes.
Use password managers: Utilise secure password management tools to store and organise your login credentials. Ensure your heirs know how to access this information when needed.
Back up important data: Regularly backup important files, photos, and documents to ensure they’re not lost if online accounts become inaccessible.
“Sudden death or accident resulting in loss of memory, Alzheimer or simply old age is leading to individuals holding assets/ information in digital format not being able to access their assets or not being able to pass on the assets to their heirs. Even if they bequeath the assets but if the heirs cannot access the information, such assets are of no value,” Sandeep Shah, partner at CIGNAS
“So all in all, not only one should plan for legacy but also ensure that information is saved securely and at the same time available to legal heirs for access. Any changes to password etc should be promptly recorded so that information is accurate,” he said.
First Published: Jul 12 2024 | 1:03 PM IST
