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.

 

  •   29 November 2013
  • 1
  •      
  •   

RELATED ARTICLES

Seven items your estate plan may have left out

10 things I learned about dementia and care homes from close range

How to avoid inheritance fights

banner

Most viewed in recent weeks

Want your loved ones to inherit your super? You can’t afford to skip this one step

One in five Australians die before retirement and most have not set up their super properly so their loved ones can benefit from all their hard work and savings. 

Super is catching up, but ageing is a triple-threat

An ageing Australia is shifting the superannuation system’s focus from accumulation to the lifecycle of retirement. While these pressures have been anticipated for decades, they are now converging at scale and driving widespread industry change.

Has Australia wasted the last 30 years?

The 20 years after Peter Costello left Treasury have been deemed wasted...by Peter Costello. The missed opportunities for Australia began long before.  

The 5% deposit scheme is bad for homeowners and Australia

An ‘affordability’ scheme making the county more vulnerable to economic shocks and contributing to the deteriorating financial situation of everyday Australians.

3 ways to defuse intergenerational anger

With the upcoming budget increasingly likely to include bold proposals to alter the tax code I’ve outlined three incremental steps with fewer unintended consequences.

Navigating the next stage of life in retirement

Retirement planning is more than just saving enough money. Long-term care needs, housing choices, and social networks are just as critical for a happy and enjoyable life.

Latest Updates

Superannuation

Indexation implications – key changes to 2026/27 super thresholds

Stay on top of the latest changes to superannuation rates and thresholds for 2026, including increases to transfer balance cap, concessional contributions cap, and non-concessional contributions cap.

Economy

Central banks need higher inflation targets

In a shift away from solely targeting low inflation, central banks are considering raising inflation targets to combat economic challenges, but face potential drawbacks and conflicts in policy implementation.

Exchange traded products

The missing 30%: how LIC returns are understated, and why it matters

The perceived underperformance of LICs compared to ETFs is due to existing comparison data excluding crucial information, highlighting the need for proper assessment and transparent reporting.

Latest from Morningstar

Alpha isn’t dead. You’ve just been measuring it wrong

New research shows smarter portfolio construction—not new factors—is the real edge in the hunt for alpha. However, finding it requires a fundamentally different mindset.

Investment strategies

The diversification illusion: why 'balanced' portfolios may be exposed

Many 'diversified' portfolios are increasingly driven by the same narrow set of forces. As concentration builds beneath the surface, understanding how portfolios behave - not just how they’re constructed - is critical for investors.

Investment strategies

The case for staying the course in credit

Current market volatility is likened to Lenin's quote on rapid change. Rising oil prices and interest rates impact bond and corporate yields, with a potential economic downturn ahead. Maintaining interest rate duration is advised.

Investment strategies

One risk after another

Investors often focus on front-of-mind risks, reacting to each headline event without considering long-term impacts. Cass Sunstein and Timur Kuran define this as an "availability cascade," affecting financial decision-making.

Sponsors

Alliances

© 2026 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.