Digital assets and related services are likely to be increasingly part of estate plans, which means that those holding these new entities must follow the rules and processes associated with traditional holdings.

The rise of digital assets, such as non-fungible tokens (NFTs), cryptocurrencies such as bitcoin, and the like, create new frontiers in the world of property rights and the legal boundaries and contracts that those holding those assets have to understand. This means that advisors must be acquainted with this territory. This article, from Howard Enders (pictured below), chief operating officer, The Estate Registry, sets out the territory. The editors hope this proves a useful guide and gives rise to discussion. The usual editorial disclaimers apply. To comment, email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com

Howard Enders

As a financial planner, it is likely that you have mastered the ins and outs of estate management – wills, trusts, tax strategies, and the essential protections your clients need to ensure that their wealth is transferred smoothly. But what about the digital assets and recurring services? If you’re not including some of these often-overlooked areas in your estate management plans, you could leave your clients with a mess that’s hard to clean up after they’ve passed.

These critical elements can easily slip through the cracks, and I’ll tell you – oversight like that isn’t just inconvenient but also potentially disastrous. Any financial planner should keep a list of these five digital assets to start incorporating into estate management plans because the future of wealth transfer is no longer limited to property and cash.

1. Cryptocurrency
An increasing number of clients are holding substantial value in crypto wallets. With over 560 million cryptocurrency owners worldwide, their estate plans must account for these assets.

But it’s more than just having a wallet with some crypto in it. There’s the issue of access. Cryptocurrency, by design, is decentralised. That’s great for privacy and autonomy but terrible if no one can access the password or seed phrase. You could be looking at a vault of digital currency that’s impossible to unlock.

Ensure that your clients document this information securely – perhaps in a separate trust or with detailed instructions left with a trusted attorney. That way, their digital fortune isn’t lost forever.

2. Subscription services
Subscription services – gym memberships, Netflix, Spotify, and even those food delivery subscriptions your clients might have forgotten about – are another area that can wreak havoc if left unattended. These small, recurring payments may seem trivial now, but they can add up to unnecessary costs over time.

I’ve seen too many estates where nobody cancelled the $20 gym membership or the monthly meal kit delivery, and it went on for months, draining funds from the estate. It’s not just about the money – it’s the principle. Encourage clients to make a list of every subscription service they’re currently paying for. Even better, help them create a plan for who’s responsible for cancelling these services when the time comes. It’ll save their heirs the headache and, more importantly, money.

3. Social media and email accounts
This one might seem strange to talk about but hear me out. Social media and email accounts can be a significant part of a person’s legacy. In an age where our lives are lived online, these accounts are often windows into personal history. The photos on Facebook or Instagram and the correspondence in an email are the modern equivalents of letters and photo albums.

But they can also become a security risk. If accounts aren’t deactivated or managed accordingly, they can be hacked or fall into the wrong hands. Some platforms, such as Facebook, offer “legacy contacts” or ways to memorialise or deactivate accounts after death, but not many people know about these options. It’s worth advising your clients to consider what they want to happen to their online presence and digital footprints so you can provide clear instructions in their estate plans.

4. Home and utility services
I’ve seen situations where families are caught off guard by ongoing home and utility services after someone passes away. It seems simple enough, but when the family is grieving, they’re last thinking about whether somebody paid the electric bill or whether the internet will be shut off.

This is particularly important if the estate involves a primary residence that the family intends to keep or sell. Missing a few payments could interrupt services, which can cause unnecessary complications. Instruct your clients to leave a comprehensive list of all home-related services, from the water bill to the gardener, along with instructions on what should happen to each account after they’re gone. Getting these details right makes all the difference in ensuring that the home transitions smoothly to the next owner.

5. Online financial accounts and logins
Bank accounts, Venmo, PayPal, loyalty programmes – so much of modern finance is online. While this can make managing finances easier during life, it becomes a nightmare after death if no one knows how to access those accounts.

What good is a bank account if nobody can get into it? Even if there’s a will, it could take months to sort out if the family or executor doesn’t have the correct logins. Encourage clients to create a secure, organised list of their online financial accounts, along with login details, and ensure that this list is accessible to the executor of their estate. Password managers can be a good solution here, as they allow all logins to be stored securely and passed on with the proper instructions.

As financial planners, it’s our responsibility to look out for our client’s entire estate – not just the obvious parts. Ensure that you have these often-overlooked areas in your estate management plans to give your clients peace of mind knowing that everything is taken care of. And, trust me, when the time comes, their families will thank you for it.

The author
Howard Enders is the COO of The Estate Registry, where he leads efforts to streamline the management and protection of family wealth across generations.