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

Raising the GST to 15%

Treasurer Jim Chalmers aims to tackle tax reform but faces challenges. Previous reviews struggled due to political sensitivities, highlighting the need for comprehensive and politically feasible change.

7 examples of how the new super tax will be calculated

You've no doubt heard about Division 296. These case studies show what people at various levels above the $3 million threshold might need to pay the ATO, with examples ranging from under $500 to more than $35,000.

Are franking credits hurting Australia’s economy?

Business investment and per capita GDP have languished over the past decade and the Labor Government is conducting inquiries to find out why. Franking credits should be part of the debate about our stalling economy.

Here's what should replace the $3 million super tax

With Div. 296 looming, is there a smarter way to tax superannuation? This proposes a fairer, income-linked alternative that respects compounding, ensures predictability, and avoids taxing unrealised capital gains. 

100 Aussies: seven charts on who earns, pays, and owns

The Labor government is talking up tax reform to lift Australia’s ailing economic growth. Before any changes are made, it’s important to know who pays tax, who owns assets, and how much people have in their super for retirement.

The rubbery numbers behind super tax concessions

In selling the super tax, Labor has repeated Treasury claims of there being $50 billion in super tax concessions annually, mostly flowing to high-income earners. This figure is vastly overstated.

Latest Updates

Taxation

100 Aussies: seven charts on who earns, pays, and owns

The Labor government is talking up tax reform to lift Australia’s ailing economic growth. Before any changes are made, it’s important to know who pays tax, who owns assets, and how much people have in their super for retirement.

7 key charts on the state of the Australian property market

The Australian property market stirs fierce debate - often bullish optimism versus crash predictions. But beyond the noise, seven charts reveal what's really driving prices and the outlook for residential real estate.

A simple alternative to the $3 million super tax

Division 296 aims to introduce improved fairness into the superannuation system, yet is overly complex. This scours the world for better ideas and suggests a simpler alternative which can achieve the same goals.

CBA and the index conundrum for super funds

After the hyperbolic rise in CBA shares, super funds are floating the idea of carving out the weightings of ASX bank securities and indexing them within their portfolios. This looks at why that might be a big error.

Strategy

10 policies to drive Australian productivity higher

Here's a comprehensive list of proposed reforms to fix Australia's stagnating economy, including introducing a flat income tax rate, reducing migration, and making childcare tax-deductible.

Interviews

Where to find big winners in Asia

As more money looks for a home outside the US, Asia may soon get some love. Fidelity's Anthony Srom outlines the best places in Asia to invest, including in Chinese consumer names, Indian financials, and Thailand.

Investment strategies

We have trouble understanding the time value of money

We overvalue the present and underestimate the future - it’s a cognitive glitch called hyperbolic discounting. It affects savings, spending, and loans, and it's more common - and costly - than we think. 

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.