Digital Assets And Cryptocurrency In Your Will And Lasting Power Of Attorney

In her latest blog, Timms Wills & Probate Solicitor, Charlotte Day discusses digital assets and Cryptocurrency in Wills and Lasting Power of Attorney.

If you use a computer, tablet or smartphone you will almost certainly have digital assets. These can include; online bank accounts, social media, email accounts, virtual currency, cloud storage (i.e. for photos) and online accounts such as Amazon, iTunes etc.

Whilst not all these assets will have a monetary value, they are likely to have a sentimental value to you or your loved ones.

Digital Assets On Death

One of the biggest issues for Executors is knowing exactly what digital assets were held and how to access them. Whilst a list of passwords and usernames would be extremely useful to your Executors, careful consideration needs to be given to the safe storage of these. Also, whether doing so will breach the service user agreements.

You may wish to prepare a Letter of Wishes to be kept with your Will which itemises your digital assets and provides the Executors with further details about them and what you would like to happen to them following your death – should the accounts be deleted or memorialised?

If you would like to speak to us about preparing your Will and a Letter of Wishes, please do not hesitate to contact us.

Digital Assets If You Lose Mental Capacity

Lasting Powers of Attorney are extremely useful documents which enable individuals to choose who they would like to manage their affairs and make decisions on their behalf should there come a time when they cannot do so for themselves.

It is possible to provide authority in a Lasting Power of Attorney to enable your chosen Attorneys to access your digital assets on your behalf. Without such authority, some digital assets could become lost or inaccessible forever.

If you would like to speak to us about preparing a Lasting Power of Attorney which provides for your digital assets, please do not hesitate to contact us.

What About Cryptocurrency?

Cryptocurrency was introduced shortly after the 2008 financial crisis and is ‘digital cash’ which can be used to pay for goods and services in the online world. Cryptocurrency can be given as a gift from person to person (without using a bank), it can be purchased online, or you can receive as payment for good or services that you have provided.

Cryptocurrency is not widely used yet, but there are predictions that the currency will take off as we move towards ‘a cashless society.’

As Cryptocurrency is all a virtual currency there is no paper trail and its associated anonymity can make it very difficult to trace without the right information on how to access it.

Therefore, it is important to think about how your Executors or Attorneys will know about your Cryptocurrency, how they will access it and what you would like to happen to it on death or should you lose mental capacity.

If you would like further advice in relation to the preparation of your Will and Lasting Powers of Attorney, please do not hesitate to contact Charlotte Day on 01530 564 498 or c.day@timms-law.com.

Charlotte Day
September 2020