Digital Assets in Your Last Will and Testament: Why You Need a Plan

TL;DR: Your estate plan must include digital assets which consist of email accounts and social media profiles and cryptocurrency and online banking and cloud storage services. Your executor will lose control of your digital assets because they lack a system to manage your online accounts after you pass away. South African law does not yet have specific digital asset legislation, making a comprehensive Will and tools like KeyHolder essential.

What Are Digital Assets?

South African citizens need to protect their digital assets through proper estate planning because these assets have gained substantial value. The lack of an online account management strategy for your cryptocurrency and digital files will create major difficulties for your executor to handle your estate after you die. Your Will should contain digital assets because they protect all your assets from being forgotten.

• People can access digital assets through their online accounts and their stored files and data which they consider valuable either financially or emotionally. They include:
• Financial: Online banking, investment accounts, cryptocurrency (Bitcoin, Ethereum), PayPal, digital wallets
• Social media: Facebook, Instagram, Twitter/X, LinkedIn profiles
• Email: Gmail, Outlook, Yahoo accounts
• Cloud storage: Google Drive, Dropbox, iCloud files and photos
• Subscriptions: Netflix, Spotify, software licences
• Websites: Domain names, blogs, online businesses

Why Do You Need a Digital Asset Plan?

Digital media: eBooks, music libraries, app purchases

• Most online service providers restrict access to accounts after the account holder’s death. Your executor will not be able to perform essential duties because you failed to provide written guidelines and necessary authentication information.
• Access financial accounts with real monetary value
• Recover photos, documents, or other sentimental digital files
• Cancel recurring subscriptions and payments
• Transfer ownership of domains or online businesses

What Is the Legal Position on Digital Assets in South Africa?

The South African government has yet to create any laws which control how digital assets should be handled during estate distribution. This means relying on your Will and related documents to provide instructions. The Electronic Communications and Transactions Act 25 of 2002 establishes basic guidelines yet it does not serve as an effective tool for estate distribution purposes. A comprehensive Will that addresses digital assets is currently the best protection.

How Can You Include Digital Assets in Your Estate Plan?

1. Create an inventory of all digital assets and accounts
2. Use a secure tool like KeyHolder to store access credentials safely
3. Use LifeLocker to store important documents and instructions for your executor
4. Specify your wishes for each account (transfer, delete, memorialise)
5. Most platforms have legacy policies. Facebook allows memorialisation, Google has an Inactive Account Manager. Your executor will face problems when trying to access or shut down accounts because you failed to provide written instructions. Will I be able to add cryptocurrency assets to my Will? Yes. Your Will needs to include cryptocurrency assets for proper protection. You should also securely document access credentials (private keys, wallet addresses) using a tool like KeyHolder.

Frequently Asked Questions

What happens to my social media accounts when I die?

Most platforms have legacy policies. Facebook allows memorialisation, Google has an Inactive Account Manager. Without documented instructions, your executor may have difficulty accessing or closing accounts.

Can I include cryptocurrency in my Will?

Yes. Cryptocurrency should be included in your Will. You should also securely document access credentials (private keys, wallet addresses) using a tool like KeyHolder.