Digital Assets and Estate Planning in Singapore

Ever wondered what happens to your “online stuff” when you’re no longer around? In today’s tech-savvy digital world, we all collect digital “stuff” quickly - Facebook photos, Instagram accounts, blogs, Steam libraries, even Bitcoin. These are all digital assets.

While you might have a plan for who gets your house, your bank account, or even your vintage record collection, have you thought about what happens to your online life? Digital estate planning ensures your digital assets are managed according to your wishes after you’re gone.

You might wonder, “Do I need this?” Imagine your family trying to access your cryptocurrency account, or your kids losing access to family photos stored in the cloud. Not ideal, right?

In Singapore, the laws around digital assets are still evolving. But planning now can save your loved ones a lot of headaches later.

So, ready to dive in and learn how to protect your digital legacy? Let’s get started! 🚀

Types of Digital Assets

When we talk about digital assets, we’re not just talking about Bitcoin. There’s a whole world of digital goodies out there.

Let’s break it down into four main types:

1. Financial Digital Assets
2. Personal Digital Assets
3. Business Digital Assets
4. Gaming Accounts and Virtual Goods

1. Financial Digital Assets

Remember that Bitcoin you bought on a whim? Or your PayPal account? These are financial digital assets. It’s important to note that while your online financial accounts and platforms are considered digital assets, the funds in the accounts/platforms are not. This distinction is crucial for estate planning.

Examples include:

• Cryptocurrencies (Bitcoin, Ethereum, etc.)
• Online banking account details (not the funds inside*)
• PayPal or other digital payment account details
• Investment account details you manage online

Important to Note: When planning your estate, ensure you clearly distinguish between the ownership of the account details and the funds within those accounts. For example, you might include in your Will to give the online banking account details to person (A) and the funds inside to another person (B). This creates conflict as to who is the rightful owner. Proper legal guidance is essential to avoid confusion and ensure your wishes are honoured.

2. Personal Digital Assets

This is the stuff that holds sentimental value.

Examples include:

• Your Facebook or Instagram accounts
• Email accounts
• Cloud storage with family photos and videos
• Personal blogs or websites

3. Business Digital Assets

For all you entrepreneurs out there.

Examples include:

• Your company website
• Online business accounts such as e-commerce platforms
• Online stores (like your Shopify account)
• Business social media accounts
• Digital products or services you sell

4. Gaming Accounts and Virtual Goods

Calling all gamers!

Examples include:

• Steam, PlayStation, or Xbox accounts
• In-game purchases or rare items
• Virtual currency in games
• Twitch streaming accounts

Some of these virtual goods can hold significant monetary value, making them important to include in your estate plan.

Let’s consider an example below:

Meet Sarah, a 30-year-old Singaporean. She has:

a) A thriving Instagram account with 50k followers. b) USD$5,000 worth of Bitcoin c) A Steam account with 200+ games d) A successful online bakery with a website and Facebook page

All of these are Sarah’s digital assets. Some have financial value, some sentimental, and some are crucial for her business.

Key Steps in Digital Estate Planning

Planning for your digital assets might seem daunting, but it doesn’t have to be. Here are 6 key steps to help you protect your online legacy:

Step 1: Identify and List All Digital Assets

Start by creating a comprehensive inventory of your digital assets. This can include:

• Social media accounts (Facebook, Instagram)
• Email accounts
• Online banking and investment accounts
• Cryptocurrencies and NFTs
• Gaming accounts and virtual goods
• Cloud storage with photos and documents
• Online business assets (websites, online stores)

Step 2: Choose a Tech-Savvy Digital Executor

A digital executor is someone you trust to manage your digital assets after you’re gone. This person should be:

• Tech-savvy and reliable
• Able to access your accounts
• Capable of following your wishes for each asset
• Responsible for ensuring your digital legacy is handled properly

Step 3: Provide Secure Access Instructions

Leave behind detailed instructions on how to access each asset. This might include:

• Usernames and passwords
• Two-factor authentication details
• Recovery email addresses
• Answers to security questions

❓But, When Do I Provide These Instructions?

As morbid as it sounds, it is crucial to plan how and when to provide these access instructions to ensure they are secure and accessible when needed:

Option 1: Before Death - Password Manager

Use a password manager to securely store access information. Share the master password with a trusted individual or digital executor to ensure they can access it when needed.

Option 2: In Your Will - Instructions in Will

Mention in your Will that a separate document with access details exists and provide instructions on how to access it. Name a digital executor in your Will who will be responsible for managing your digital assets.

Option 3: After Death - Trusted Individual

Inform a trusted individual or your digital executor about the location of the access instructions. They can retrieve and use the information after your passing, ensuring your digital assets are managed according to your wishes.

By following these steps, you can ensure that your digital assets are managed according to your wishes and that your loved ones can access them when needed.

Step 4: Specify Wishes for Each Asset

Clearly state what should happen to each digital asset. For example:

• Should your social media accounts be memorialised or deleted?
• Who should inherit your cryptocurrency?
• What happens to your online business?
• How should your personal photos and documents be distributed?

Step 5: Include Digital Assets in Your Will

Work with a lawyer to properly include your digital assets in your Will. Remember, in Singapore, cryptocurrencies and NFTs are increasingly considered property and can be included in your Will. Your Will should:

• Mention your digital asset inventory
• Name your digital executor
• Provide instructions for accessing your digital asset information

Step 6: Review and Update Regularly

As major life events happen that might sometimes inadvertently affect your digital life, so should your estate planning. Set reminders to:

• Review your digital asset inventory annually
• Update access instructions as needed
• Adjust your wishes based on new assets or changing circumstances

By following these 6 steps above, you can ensure that your digital assets are managed according to your wishes and that your loved ones are spared from unnecessary stress and confusion in the unfortunate event of your passing.

Legal Considerations in Singapore

Navigating the legal landscape for digital assets can be tricky, especially since the laws in Singapore are still catching up with technology.

However, based on the latest updates that we at Guardian Law have gathered, here are some key points for you to keep in mind:

Current Laws and Regulations

In Singapore, digital assets are increasingly recognized as property, allowing them to be included in your estate and passed on to your beneficiaries. However, the legal framework is still evolving, making it crucial to stay informed about any changes. Check our website regularly for updates and new information on this topic.

Challenges in Digital Asset Estate Planning

One of the biggest challenges right now in Singapore is the lack of specific legislation for digital assets. This can create uncertainty about how digital assets should be handled. Proper estate planning is essential to ensure such assets are managed according to your wishes.

Different platforms have different policies for account management after death. Some might allow access to your digital executor, while others might not.

For example,

Steam gaming accounts are non-transferable after death according to their policies, while cryptocurrencies can be included in an estate plan and passed on to beneficiaries with the proper documentation.

Another example,

Imagine you have a significant amount of Bitcoin. Under current Singapore law, your Bitcoin can be considered part of your estate. However, accessing it requires the private keys. If your family doesn’t have these keys, they can’t access the Bitcoin, even if it’s legally theirs.

Given the rapidly changing nature of digital assets, it’s crucial to keep your estate plan updated. Regularly review your digital asset inventory and make any necessary changes to your Will. This ensures that your plan remains relevant and effective.

Conclusion

Digital assets are an integral part of modern life, and their importance will only continue to grow. By understanding the types of digital assets, following key steps in digital estate planning, and adopting best practices for digital asset management, you can protect your online legacy and ensure your wishes are honoured.

Guardian Law is here to help you navigate the complexities of digital estate planning. Contact us today to learn more about how we can assist you in securing your digital assets for the future.

Need Help?

Are you looking to protect your digital assets and ensure they are managed according to your wishes? Our team at GuardianLaw is here to assist you. Feel free to reach out to us through any of the following channels:

Contact us here or Whatsapp us and we will get back to you within 1 working day.

We are here to help!

Frequently Asked Questions

What are digital assets?

Digital assets are online accounts and digital possessions that hold value, such as social media profiles, email accounts, cryptocurrencies, and even online gaming accounts.

Why is digital estate planning important?

Digital estate planning ensures that your digital assets are managed according to your wishes after you're gone, preventing loss of valuable information and easing the burden on your loved ones.

How can Guardian Law help with digital estate planning?

Guardian Law offers digital estate planning services, including setting up digital assets, drafting wills, and providing legal advice on ensuring your digital assets are managed according to your wishes.

What types of digital assets should I include in my estate plan?

Include financial assets (cryptocurrencies, bitcoin), personal assets (social media, email), business assets (websites, online stores), and virtual assets (gaming accounts, in-game purchases).

How do I create a digital asset inventory?

List all your digital assets, including account names, usernames, passwords, and security details. Regularly update this inventory to keep it current.

What is a digital executor, and why do I need one?

A digital executor is a trusted person who manages your digital assets after your death. They ensure your digital legacy is handled according to your wishes.

Can digital assets be included in a Will in Singapore?

Yes, digital assets can be included in your Will. Work with an estate planning lawyer to ensure they are properly documented and legally valid.

What are the legal considerations for digital assets in Singapore?

Digital assets are increasingly recognised as property in Singapore, but the legal framework is still evolving. Stay informed about changes and consult a lawyer for guidance.

How often should I update my digital estate plan?

Review and update your digital estate plan regularly, especially after major life events or changes in your digital assets. This ensures your plan remains relevant and effective.