In today’s digital age, our lives extend far beyond physical assets. From social media accounts and email addresses to cryptocurrency, cloud storage, and digital subscriptions, digital assets form a significant part of many Australians’ estates. Yet, few people consider what happens to these assets after death. Integrating digital assets into an online will can help ensure they are managed or passed on according to your wishes.
This guide explains how online wills in Australia can address digital assets, the legal requirements for digital wills, and practical steps to protect your online life.
What Is an Online (Digital) Will?
An online will is a will created using an online platform instead of through a solicitor. Despite being created digitally, it must usually be printed, signed, and witnessed to meet Australian legal standards.
Online wills typically cover:
- Naming beneficiaries
- Appointing executors
- Distributing assets
- Special instructions
However, traditional online will templates may not automatically include digital assets unless specifically addressed.
How Online Wills Work in Australia
Creating an online will involves:
- Completing a structured questionnaire on an online platform
- Generating a tailored legal document
- Printing, signing, and witnessing the will according to state law
- Safely storing the will and notifying your executor
Execution requirements vary by state, but all Australian jurisdictions require that a will be signed by the testator in front of two witnesses. Following these rules ensures that your digital will is legally enforceable.
Are Online Wills Legal in Australia?
Yes. Legal online wills are recognised if they comply with execution requirements and reflect your intentions. Courts focus on:
- Proper signing and witnessing
- Mental capacity at the time of signing
- Absence of undue influence
- Clear instructions
However, including digital assets introduces additional complexities that generic online will templates may not fully address.
What Counts as Digital Assets?
Digital assets include any online or electronic property that has financial or sentimental value. Examples include:
- Email accounts
- Social media profiles (Facebook, Instagram, LinkedIn)
- Cloud storage (Google Drive, iCloud, Dropbox)
- Digital currencies like Bitcoin
- Online gaming accounts or virtual items
- Domain names, blogs, or websites
- Online business accounts
- Subscription services (Netflix, Spotify, Adobe Creative Cloud)
Without explicit instructions, access to these assets may be blocked or lost entirely.
Risks and Limitations of Online Wills for Digital Assets
Platform Restrictions
Many online services have strict policies; some require account closure or limit transferring access to heirs.
Password and Security Challenges
Executors may struggle to access encrypted accounts without detailed instructions or stored credentials.
Generic Will Templates
Free or standard online will templates often do not prompt users to address digital assets specifically.
Legal Gaps
Australian law treats digital property differently from physical property, meaning executors may have limited legal authority to manage or transfer accounts.
Differences Between Online Wills and Lawyer-Drafted Wills
| Feature | Online Will | Lawyer-Drafted Will |
|---|---|---|
| Asset Coverage | Often limited to traditional assets | Can specifically address digital assets, cryptocurrency, and online accounts |
| Customisation | Template-based | Fully customised to family and estate needs |
| Legal Advice | Minimal or none | Professional guidance ensures compliance with state law |
| Risk of Disputes | Higher for complex estates | Lower, with clear instructions and legal safeguards |
For estates with valuable digital assets, lawyer-drafted wills often provide superior legal protection.
Who Should Include Digital Assets in Their Online Will?
- Individuals with social media, email, or cloud storage accounts
- Owners of cryptocurrency, NFTs, or online businesses
- Families with sentimental digital content (photos, videos, creative works)
- Anyone who wants to control their digital legacy
Even small estates benefit from clear instructions regarding digital assets.
Common Mistakes When Including Digital Assets
- Failing to list all relevant accounts and assets
- Forgetting to provide clear instructions for executors
- Using vague beneficiary language such as “all my online accounts”
- Not storing passwords or access instructions securely
- Assuming online platforms automatically transfer access to heirs
These mistakes can result in lost access, legal disputes, or assets that cannot be inherited.
Practical Example
Sarah created a free online will leaving her estate to her children but did not mention her cloud storage or digital photos. After her death, her children could not access important sentimental items stored online. A properly drafted digital will could have provided access instructions, passwords, and beneficiary designations for these assets.
Best Practices for Including Digital Assets in Online Wills
- Make a separate digital asset inventory, including usernames, passwords, and URLs
- Include instructions for how each digital asset should be managed or transferred
- Use secure storage methods for passwords, such as encrypted password managers
- Regularly update your inventory as accounts and digital property change
- Consider legal advice for complex assets like cryptocurrency or online businesses
Final Thoughts and Legal Disclaimer
Digital assets are increasingly valuable and personal, yet they remain a grey area in many online wills. Including clear, detailed instructions in your digital will ensures your online life is managed according to your wishes and reduces disputes among heirs.
This article provides general information only and does not constitute legal advice. Laws vary by state, and individual circumstances differ. Consult a qualified Australian estate planning professional for personalised guidance.
