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

Making sense of record high markets as the world catches fire

The post-World War Two economic system is unravelling, leading to huge shifts in currency, bond and commodity markets, yet stocks seem oblivious to the chaos. This looks to history as a guide for what’s next.

3 ways to fix Australia’s affordability crisis

Our cost-of-living pressures go beyond the RBA: surging house prices, excessive migration, and expanding government programs, including the NDIS, are fuelling inflation, demanding bold, structural solutions.

Is there a better way to reform the CGT discount?

The capital gains tax discount is under review, but debate should go beyond its size. Its original purpose, design flaws and distortions suggest Australia could adopt a better, more targeted approach.

How cutting the CGT discount could help rebalance housing market

A more rational taxation system that supports home ownership but discourages asset speculation could provide greater financial support to first home buyers.

Welcome to Firstlinks Edition 648 with weekend update

This is my last edition as Editor of Firstlinks. I’m moving onto a new role though the newsletter will remain in good hands until my permanent replacement is found.

  • 5 February 2026

It’s economic reality, not fear-based momentum, driving gold higher

Most commentary on gold's recent record highs focus on it being the product of fear or speculative momentum. That's ignoring the deeper structural drivers at play. 

Latest Updates

Superannuation

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.

Investment strategies

Corporate earnings show resilience against volatility but risks remain

Evidence for a strong reporting season had been piling up for months and validated an upgrade cycle already underway. However, risks remain from policy uncertainty.

Superannuation

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. 

SMSF strategies

Sixteen steps in a typical SMSF borrowing

Getting a mortgage is never an easy process but when an investment property is purchased in a SMSF the complexity increases significantly. Read this before taking the plunge. 

Planning

Do HNWI get better advice?

Good advisers lead to more diversification, lower turnover and less home bias. However, studies show the average adviser may not be adding much value to clients. 

Strategy

AFL Final Ten with wildcard edit 'unlevels' the field

When the new AFL season kicks off a wild-card will be added to the finals. Is this new formula fair and how does it impact the odds of winning the premiership.

Planning

Love them or hate them, it's worth understanding annuities

Investors have historically balked at exchanging a lump sum for a future steam of income. Breaking down the financial and emotional considerations of purchasing an annuity.        

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.