Cryptocurrency, social media and photos as an inheritance: how to transfer digital assets and not lose access

Cryptocurrency, monetized social media pages, cloud storage with photos and other digital assets are increasingly becoming part of the inheritance. However, the presence of legal rights to such property does not guarantee that the heir will actually be able to use it.

The main problem of digital inheritance is access. While in the case of bank accounts there are certain procedures for receiving funds by heirs, the situation is much more complicated with crypto wallets, accounts and files. Without a password, PIN code or seed phrase, it may be technically impossible to access individual assets even if there are documents confirming the right to inheritance.

What may be included in digital inheritance

Digital assets can be conditionally divided into three categories: property, personal and license.

Property assets may include cryptocurrency, monetized blogs, channels and other digital content that has economic value.

A separate category is personal digital data — photos, correspondence, notes, and other materials. They can also be taken into account when planning an inheritance, but the use of individual content after the owner’s death may depend on the rights of other persons.

The situation is even more complicated with profiles on social networks and other accounts. The possibility of gaining access to them is largely determined by the rules of a specific platform and the terms of the user agreement.

Why a will alone may not be enough

Even if a person directly specifies in a will who the cryptocurrency should go to, this will not solve the technical problem of access.

For example, if the heir knows about the existence of a crypto wallet, but does not have the necessary access keys, he may not be able to actually use the asset.

At the same time, specifying passwords or seed phrases directly in the text of the will is not recommended due to the risk of disclosure of confidential information.

How to prepare digital assets for inheritance

The first step can be to inventory digital assets. The owner should determine which assets have financial value, where important personal data is stored, and which accounts he would like to transfer or keep after his death.

For each asset, it is advisable to separately determine the heir and think through a secure mechanism for gaining access. Passwords and keys should be stored in such a way that third parties cannot use them during the owner’s lifetime.

Some technology companies already offer their own mechanisms for digital inheritance. In particular, on Apple devices, it is possible to determine in advance who will be able to access certain data after the user’s death.

Passwords can become decisive

In the case of digital inheritance, legal right and technical access actually exist in parallel. An heir may have legal grounds to claim a certain asset, but without the necessary keys, it will be difficult or impossible to obtain it.

Therefore, owners of cryptocurrency, digital content, and important online accounts should think in advance not only about who will inherit the assets, but also how this person will be able to access them.