Digital assets and your estate

Why planning ahead matters

Yet most wills and succession plans still solely focus on traditional assets such as property, shares and savings. Digital assets are often overlooked, leaving families and executors struggling to access information and take control of these assets when the will-maker dies. 

What are digital assets? 

Generally speaking, a digital asset is any item of value that is in an electronic or virtual form (rather than physical). These include:

• Financial accounts – internet banking, investment platforms, PayPal or electronic wallets
• Blockchain assets, non-fungible tokens (NFTs) or cryptocurrencies
• Personal content such as photos, videos or documents
• Social media accounts – Facebook, Instagram, X (formerly Twitter) or TikTok accounts, and
• Business platforms – domain names, websites, email lists or digital records. 

Some of these assets can hold significant financial value. Others may be priceless to family members wishing to preserve a loved one’s memories. 

Planning ahead is important

Digital assets are protected by passwords, encryption and restrictive service agreements. Executors cannot simply assume control of online accounts and services without legal authority. This can cause significant problems:

• Executors may be locked out of key accounts
• Valuable assets can be lost if no one knows how to retrieve them — especially cryptocurrencies that are unrecoverable without a private key, and
• Service providers may refuse access due to privacy or contractual limits.

 The courts have recognised that certain digital property, such as cryptocurrencies, can be legally owned and held on trust.[1] However, ownership of many other online assets, such as social media accounts or cloud storage, is less certain, as users often hold only a licence, which may be non-transferable and could terminate on their death. 

New Zealand’s legal grey area

New Zealand law has yet to fully catch up with the digital age. The Wills Act 2007 and Administration Act 1969 do not specifically address digital assets. Executors, therefore, must often rely on general property law, privacy regulations and the terms of individual service-providers.

Some overseas jurisdictions, including several US states, now grant executors explicit rights to access digital assets after the will-maker’s death. 

Until similar reform occurs here, careful planning remains the best protection to ensure digital assets can be accessed, managed and transferred according to the will-maker’s wishes.

What to do now

• Make a digital inventory – list all your online accounts, platforms and digital property
• Store login credentials securely – avoid including passwords in your will, as it becomes public after probate. Instead, store passwords securely using a password manager, encrypted file or a separate memorandum of wishes held safely with us 
• Appoint a digital executor or include specific instructions in your will – specify who can access, manage or close your digital assets
• Address cryptocurrencies directly – record how and where private keys or hardware wallets are kept. Without them, digital currency is lost forever, and
• Provide guidance for sentimental items – in your memorandum of wishes state whether you want social media accounts, photos and videos deleted, memorialised or handed to your family. 

We are here to help

We can help your estate planning keep up with the digital world. This includes drafting appropriate will clauses, reviewing trust arrangements and guiding executors on accessing digital accounts. Many firms include digital-asset checklists to make the process easier, saving time, money and stress later.

The bottom line

Digital assets are no longer a niche concern — they are part of everyday life and should be part of estate planning. Including them in a carefully drafted will is the simplest way to protect your online legacy and ensure that both your physical and digital affairs are properly organised. 

1 Ruscoe v Cryptopia Ltd [2020] NZHC 728.

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