Most people understand the concept of having, or already have in place, a Will. In their Will they will leave instructions on how they want their assets distributed. Technology and social practices have changed hugely in recent years, and so when thinking about your Will, new factors should be taken into consideration.
For example, many people now bank almost exclusively online. Payments for goods and services have moved from cash, to cards, to online payments using phones, watches and even rings. Most banks have encouraged us to bank online, pushing us away from old fashioned bank statements, and so the physical records that were so useful to estate administrators don’t exist anymore. Even bank branches, that beneficiaries could visit so that they could speak to the bank manager, no longer exist, they’ve been closed. In this situation, your Will might say “I leave (abc) GBP10,000”, but if your executors can’t find your bank accounts, how can they fulfil this request?
Other ‘assets’ are also moving online, from investments and pensions, all the way through to businesses, some of which operate almost exclusively online.
You own these assets, so you should make sure they are not lost to your beneficiaries. How would your loved ones know what your online assets are and where they can be found? You have the legal right to pass on digital assets with financial value to your chosen beneficiaries and you have the legal right to manage the deactivation, memorialisation or removal of your digital social life, but you need to take steps to exercise your rights, or ensure your executors are in a position to do so.
So what should you do?
Write your Will
A Will can help you arrange your affairs and plan effectively for the future.
One of the most important things anyone can do is to secure the future for the ones they care about. We can’t know what will happen to us but writing a will and getting sensible advice on UK inheritance tax laws and about how best to pass on assets is an essential part of that planning process.
Will Planning Questionnaire – Melior Tax
Consider a ‘Letter of Wishes’
A letter of wishes is a document drawn up to accompany your Will. Unlike a will, it is not legally binding, but it provides guidance for the people dealing with your estate after you die. A letter of wishes serves to capture your guidance on specific matters that require discretion. It tells your executors, and/or family your views on how you would like them to deal with your assets. It can also set out the way you wish them to approach the exercise of their powers.
For example, you could include guidance on how your executors should approach your online assets. This might include statements such as “I bank with (abc) bank. My bank back account number(s) is/are (*********) and the sort code is (**-**-**). My pension is with (abc) Pensions. The pension account number is (*********). My Individual Savings Account is with (abc). The account number is (********)” etc.
Consider Online ‘Shared Spaces’
There are many online shared spaces that could be used by you and your executors.
For example, it is possible to ‘share’ documents held online using ‘links’. You could include in your Will or letter of wishes the web address that led to a document that included details of all your online assets. This web address would only ever be accessed by someone (probably your family or executors) who reviewed your Will.
It’s also possible to use software that allows collaboration, such as Microsoft Teams. MS Teams is designed specifically to allow groups of employees to share information, why not set up a Team with your family and/or executor(s)?
Social media companies allow shared albums to allow pictures to be shared. Why not set up a shared album with your family and/or executors, and add pictures of your letter of wishes, and/or letters or statements giving information about your assets?
Melior Wealth provides a client portal that provides you with a secure document vault, so we can share important documents with you and you then have the ability to share your documents with us, if required. This is far more secure than emailing and sending in the post. You can house all your financial documents online where they are secure and fully backed up.
I’m here to help, if you have any questions or need any help please let me know.
Digital Directory
Consider making a digital directory that contains details of all of your online assets, social media accounts, logins and passwords. It should be regularly updated. This will allow your executors to be able to trace your assets and pass them on to your beneficiaries. Consider where you hold this document, it would be held with your Will, or for extra security, held with a trusted adviser.
Needless to say, if you have any comments or queries about this, or even simply want to discuss things, let me know.