Digital Assets and Estate Planning in Ontario: What You Need to Know

The short answer: Digital assets are anything you own or use online, including online banking, social media, email, cloud storage, subscriptions, loyalty points, and cryptocurrency. To protect them in Ontario, make an inventory, name a digital executor in your will, document your wishes for each account, and store passwords securely outside your will.

When people think and talk about their estate or estate planning, they often first consider family heirlooms, items of sentimental value, bank accounts, and tangible property. But your assets and belongings don't only include physical things. They also include your digital assets.

As an estate planning law firm serving Whitby, Oshawa, and the greater Durham Region, we're seeing more clients ask how to protect digital assets, from cryptocurrency wallets to Instagram accounts, as part of a complete Ontario estate plan.

What are digital assets?

Digital assets are anything you own that lives online, and they aren't limited to things like cryptocurrency or NFTs. You should also consider your personality rights, meaning your name, likeness, and image, along with your banking and financial information and your online profiles and accounts.

What online profiles and accounts count as digital assets?

• Financial accounts, such as online banking and PayPal
• Social media profiles
• Email and cloud storage
• Subscriptions and streaming services
• Loyalty programs, such as collecting points at your favourite places to shop
• Cryptocurrency wallets and NFTs

Keep in mind that many accounts are governed by the platform's terms of service, which may limit whether an account can be transferred or accessed by someone else after you're gone. Check the terms for your important accounts.

Why do digital assets matter in an estate plan?

If you pass away without leaving a way for your family members to log in, they could lose out on memories, points, and other monetary value. Dormant online accounts are also vulnerable to hacking and other cybersecurity issues.

How do you handle digital assets in your estate plan?

1. Create an inventory of your online profiles and their logins. Your passwords and usernames should never be included in your will. Keep them in a secure location where your digital executor can easily access them, such as a password manager or your death binder.
2. Name a digital executor. This should be someone tech-savvy and trustworthy. They can be the same person as the executor of your will, but they don't have to be. You can name this person in your will.
3. Clearly document your wishes for each account. Whether you want an account deleted, transferred, or sold, be clear. Some online platforms, like Facebook, offer legacy features that let you turn your account into a memorial after you pass away, if you wish. Features vary by platform and can change, so check each one.
4. Create or update your will. Your will should clearly state who your digital executor is and what should happen with your digital accounts.
5. Update regularly. Technology evolves and your digital profiles may change. It's a best practice to review your inventory and logins yearly.

Does Ontario recognize a digital executor?

Not yet under legislation. As of this update, Ontario has no law specifically addressing fiduciary access to digital assets, though you can still name a digital executor in your will to state your wishes. Some platforms may still limit access under their own terms of service, which is why a clear inventory and documented wishes matter.

Who should have access to your digital assets?

Your digital estate plan is part of your larger estate plan, which should include a death binder. Collecting the family's most important legal and financial information in one secure location can be a tremendous resource in the event of an unexpected (or eventual) death.

Never store your passwords directly in your will, because it becomes a public document after probate. Instead, reference a separate, secure location, like your death binder, where your executor can find them.

Frequently asked questions

What are digital assets in an estate plan?
Anything you own or use online, including financial accounts, social media, email, cloud storage, subscriptions, loyalty programs, cryptocurrency, and even your personality rights: your name, likeness, and image.

What is a digital executor?
Someone you name to manage your digital assets after you pass away. They should be tech-savvy and trustworthy, and can be the same person as the executor of your will, but don't have to be.

Should I put my passwords in my will?
No. A will becomes a public document after probate. Keep passwords in a separate, secure location where your digital executor can access them.

What happens to my social media accounts when I die?
It depends on the platform and your wishes. Some platforms, like Facebook, let you turn your account into a memorial. Otherwise, document whether you want an account deleted, transferred, or sold.

What happens to my cryptocurrency if I die?
Cryptocurrency can be impossible to recover if no one has access to your wallet. Include it in your inventory and make sure your digital executor can access what they need, stored securely outside your will.

How often should I update my digital asset inventory?
At least once a year, since technology and your accounts change.

Contact

Brian McMurter is a real estate and estate planning lawyer at McMurter & Associates in Whitby, helping clients across Durham Region with estate planning. We provide clear, "no surprises" guidance for clients who want to understand their estate plan and the decisions in it. Learn more about our wills, powers of attorney, and estate services.

Contact McMurter & Associates Monday to Friday, 9 a.m. to 5 p.m. at info@mcmurter.com, or call 905-666-9200 to schedule a consultation.

Related reading:

• The Biggest Estate Planning Mistakes in Ontario (and How to Avoid Them)
• How Do You Legally Choose a Guardian for Your Child in Ontario?

Disclaimer: This article provides general information about Ontario law and is not a substitute for legal advice. Every estate and family situation is unique. Please speak with a lawyer about your specific circumstances before making decisions about your estate plan.