Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 42

Protect your personal digital assets

Most people are moving away from the world of paper and towards a more digital life, which in turn has created a new form of asset – the ‘digital asset’. A digital asset refers to anything you own or have rights to that is accessed via the internet or any other form of digital technology.

A digital asset does not only refer to an asset with financial value, they can also hold personal or sentimental value to friends or loved ones.

Some examples of digital assets include:

  • online banking accounts
  • email accounts
  • social media accounts (e.g. Facebook, Twitter, LinkedIn)
  • online multimedia accounts (e.g. Itunes, YouTube)
  • shopping and business accounts (e.g. EBay, PayPal)
  • online photos and document storage accounts
  • domain names and websites.

It is important to note that the current legislation in NSW does not classify some of these digital assets as a form of ‘personal property’ and therefore they may not be included in the assets that form part of the residual estate in a will.

The important question that arises with these new digital assets (as with any other asset) is, what will happen to the assets when a person becomes incapacitated or dies?

Some websites have policies providing their procedures when accounts are left dormant for a specific amount of time. For example, Yahoo will deactivate accounts that have not been accessed for 12 months. Other websites, such as Facebook allow the option to create a ‘memorial page’ from a deceased users account.

However, there are a lot of websites that do not offer these options and therefore, to ensure these assets are not lost, digital assets should now be specifically referred to and incorporated into current wills and estate plans.

Failure to do so may prevent loved ones from being aware that these digital assets exist, and may also prevent the Executor from accessing and distributing the contents of the digital assets at a time of your incapacity or death.

Further, if digital assets are not dealt with correctly at the time of death, the information stored in these accounts could be lost forever, or be susceptible to identify theft.

It appears that to be abundantly cautious it will be necessary for your will to include a clause that will give the Executor of your estate the necessary power and authority to handle and manage your digital assets, so that they are able to deal with and distribute them accordingly.

In preparing your will, you should provide a full inventory of all your assets including your digital assets, including where appropriate, all usernames, passwords and secret questions. This will ensure that the Executor is fully aware of all your digital assets and will be able to successfully access and manage them. Due to the important nature of the information in such an inventory, it should be stored in a sealed envelope separate from your will and in a secure place.

Some online accounts require passwords or secret questions to be frequently updated, and in turn, the inventory must also be kept up to date, although this may not be practical for most people with busy lives and little spare time.

 

David Addinall is a Solicitor at Foulsham & Geddes Solicitors and Attorneys.

 

RELATED ARTICLES

Seven items your estate plan may have left out

How to avoid inheritance fights

Can a crime invalidate a will?

banner

Most viewed in recent weeks

Are LICs licked?

LICs are continuing to struggle with large discounts and frustrated investors are wondering whether it’s worth holding onto them. This explains why the next 6-12 months will be make or break for many LICs.

Retirement income expectations hit new highs

Younger Australians think they’ll need $100k a year in retirement - nearly double what current retirees spend. Expectations are rising fast, but are they realistic or just another case of lifestyle inflation?

5 charts every retiree must see…

Retirement can be daunting for Australians facing financial uncertainty. Understand your goals, longevity challenges, inflation impacts, market risks, and components of retirement income with these crucial charts.

Why super returns may be heading lower

Five mega trends point to risks of a more inflation prone and lower growth environment. This, along with rich market valuations, should constrain medium term superannuation returns to around 5% per annum.

The hidden property empire of Australia’s politicians

With rising home prices and falling affordability, political leaders preach reform. But asset disclosures show many are heavily invested in property - raising doubts about whose interests housing policy really protects.

Preparing for aged care

Whether for yourself or a family member, it’s never too early to start thinking about aged care. This looks at the best ways to plan ahead, as well as the changes coming to aged care from November 1 this year.

Latest Updates

Shares

Four best-ever charts for every adviser and investor

In any year since 1875, if you'd invested in the ASX, turned away and come back eight years later, your average return would be 120% with no negative periods. It's just one of the must-have stats that all investors should know.

Our experts on Jim Chalmers' super tax backdown

Labor has caved to pressure on key parts of the Division 296 tax, though also added some important nuances. Here are six experts’ views on the changes and what they mean for you.        

Superannuation

When you can withdraw your super

You can’t freely withdraw your super before 65. You need to meet certain legal conditions tied to your age, whether you’ve retired, or if you're using a transition to retirement option. 

Retirement

A national guide to concession entitlements

Navigating retirement concessions is unnecessarily complex. This outlines a new project to help older Australians find what they’re entitled to - quickly, clearly, and with less stress. 

Property

The psychology of REIT investing

Market shocks and rallies test every investor’s resolve. This explores practical strategies to stay grounded - resisting panic in downturns and FOMO in booms - while focusing on long-term returns. 

Fixed interest

Bonds are copping a bad rap

Bonds have had a tough few years and many investors are turning to other assets to diversify their portfolios. However, bonds can still play a valuable role as a source of income and risk mitigation.

Strategy

Is it time to fire the consultants?

The NSW government is cutting the use of consultants. Universities have also been criticized for relying on consultants as cover for restructuring plans. But are consultants really the problem they're made out to be?

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.