By Lyons Davidson
February 12th, 2025
In the modern world, digital assets have become an integral part of our daily lives. From cryptocurrencies to social media accounts, personal files stored in the cloud, and online bank accounts, these assets are often as valuable and important as physical possessions.
However, dealing with a loved one’s digital assets after their death can be complicated, especially in the absence of a clear legal framework. Navigating this process requires understanding both the legal and practical steps involved to ensure the digital assets are handled properly and in accordance with the deceased’s wishes. This article will take you through what a digital asset is and how to handle them.
Legal Considerations in the UK
In the UK, digital assets are treated as part of a deceased person’s estate, much like physical assets. Last year, the UK government introduced the Property (Digital Assets etc) Bill [HL], which provides that digital assets can be considered to be personal property under the laws of England and Wales, and could therefore be afforded the same legal protections as other, traditional categories of personal property.
The bill itself is very brief. The key provision states:
Objects of personal property rights: A thing (including a thing that is digital or electronic in nature) is not prevented from being the object of personal property rights merely because it is neither — (a) a thing in possession, nor (b) a thing in action.
Here’s what you need to know…
Handling a loved one’s digital assets after death can be a complex and time-consuming process. However, with careful planning, clear instructions, and the right legal guidance, you can ensure that these assets are properly managed and disposed of according to their wishes. As digital assets continue to grow in importance, the need for legal frameworks and clearer regulations will likely increase, making it even more essential for individuals to include digital assets in their estate planning.
