Digital assets ‘at risk of being lost’ due to lack of planning for death, Which? poll finds

The majority of people are not adequately planning for what will happen to their digital assets after they die, a new survey by Which? has found.

According to a poll conducted by the consumer watchdog, fewer than one in five people have drawn up instructions for how to access their online accounts when they pass away. As well as emails and photos, some digital entities may have elements that could be classed as major financial assets. For example, social media accounts that receive royalties.

Which? has urged people to share the details of their online accounts with loved ones, and to consider putting together a letter of wishes to accompany their will. It is also pushing for the government and social media giants to make the process of accessing dead people’s accounts simpler.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The news comes as Chancellor Rachel Reeves is reportedly mulling changes to inheritance tax (IHT) in her upcoming October Budget. To prepare for any IHT increase, writing up a will could be key.

Which?: ‘after-death planning for digital assets is a must’

Out of the 14,631 subscribers Which? polled in April 2024, 76% said they had no plan for what would happen to their digital assets after their death. Just 18% had drawn up directions for how to access their online accounts, with only 3% having included them in their will.

Whilst being able to access profiles allows people to retrieve digital items of sentimental value, such as photos and emails, there is often a financial element too. For example, you may need to access particular websites to stop payments for subscriptions or services.

Significant assets may also be held in the online space. Which? has warned that people could lose control of online businesses and self-published works if they fail to pass them on correctly through a will or letter of wishes.

There are further grey areas that could prove to be challenging for beneficiaries. In the age of the influencer, people can make money from social media adverts and other posts. But what happens to these revenue streams after death is unclear.

The consumer site has said anyone benefiting from such an arrangement should check their agreement with each social platform, and what the protocol is for passing these assets on. For example, on Instagram, Which? found that users need both the birth and death certificates of the dead person, as well as proof that they are their lawful representative, to access the account of the deceased.

It also said people ought to be aware that, while royalties can be specifically gifted by an estate, benefits derived from digital assets may not be classed as royalties. This issue is something it wants the government to provide greater clarity on, given that more and more of people’s lives are being played out in the digital sphere. It urged lawmakers to come up with a legal framework that would deal with digital assets after a person’s death.

Which? magazine editor Harry Rose said: “Our latest research throws into sharp relief the lack of planning the vast majority of people have done for what happens to their digital assets when they die.

“Whether it’s handing over sentimental assets such as photos, or simply enabling a loved one to close down your social media accounts, we strongly advise consumers to put a plan in place. Which? is also calling for the government and tech companies to make the process of handing over digital assets easier so that it is much clearer what people need to do, and to help ease the pressure during some of the most stressful times of their lives.” 

The website added that it had received multiple complaints from bereaved people about accessing their loved ones’ digital presences. It had received reports of serious issues with accessing accounts, transferring files and dealing with unhelpful customer services.