Jainal Narsai, Fiduciary Specialist at Alexforbes

Every September, Wills Month serves as a reminder of the importance of having a valid will in place. Yet one of the most common misconceptions about estate planning is that once a will has been drafted and signed, the job is done. A will is only effective if it can be found and if the assets it governs can be identified and accessed when the time comes.

This is particularly relevant in South Africa, where according to the Department of Justice and Constitutional Development of the Republic of South Africa 70% to 80% of people die without valid will. A carefully prepared will can offer little practical value if the executor cannot locate it, potentially leading to delays in the administration of an estate and, in some circumstances, the application of the Intestate Succession.

While awareness around wills and estate planning has improved in recent years, another issue is beginning to emerge. As more of our financial and personal lives move online, digital assets are becoming an increasingly important part of the estates we leave behind.

Many people spend considerable time planning for their homes, investments and personal belongings, yet give little thought to what will happen to their online accounts and digital records after their death. The result is that executors and family members are often left trying to piece together a person’s digital footprint without a clear understanding of what exists or how it can be accessed.

Digital assets encompass far more than many people realise. They include social media profiles on platforms such as Facebook, Instagram, LinkedIn and X, as well as cloud storage accounts, digital photographs and videos, loyalty and rewards programme memberships, cryptocurrency holdings and digital wallets. In some cases these assets have direct financial value. In others, their significance is deeply personal.

A collection of family photographs stored in the cloud, for example, may have little monetary worth but could hold immense sentimental value for loved ones. Similarly, access to social media accounts may help preserve memories and connections that family members would otherwise lose. Cryptocurrency holdings, on the other hand, could represent a substantial financial asset that may be impossible to recover if the necessary information is not available.

The challenge with digital assets is not generally whether they form part of an estate. In most instances, they do. The greater difficulty lies in ensuring that they can be identified and accessed. Unlike a physical property title deed stored in a safe or filing cabinet, digital assets often leave no obvious trail. If nobody knows they exist, they may never form part of the estate administration process.

Fortunately, addressing this risk does not require complicated planning. One of the most effective steps is simply to maintain a record of your digital footprint. This should include details of financial accounts, social media profiles, subscription services, online businesses and any digital wallets or cryptocurrency holdings.

Creating such a record is not about sharing sensitive information widely. In fact, estate planning professionals generally advise against including passwords directly in a will. During the administration of an estate, a will may become accessible to various parties involved in the process. Including passwords or security credentials in the document could therefore create unnecessary risks.

Instead, individuals should ensure that access information is stored securely and that a trusted person or executor knows how to obtain it if required. The objective is to strike a balance between protecting information during one’s lifetime and ensuring that authorised individuals can access it after death.

Another often-overlooked aspect of digital estate planning is the range of options offered by online platforms themselves. Many social media and digital service providers now allow users to nominate legacy contacts or specify how accounts should be managed after death. These settings can help provide clarity and reduce uncertainty for family members at a difficult time.

As technology continues to evolve, digital assets will become an increasingly prominent feature of estate planning. Future developments may make it easier to transfer, manage and administer these assets. However, individuals cannot afford to wait for future solutions when practical measures are available today.

In an increasingly digital world, estate planning is no longer only about physical possessions and traditional financial assets. It must also account for the growing collection of digital assets accumulated throughout a lifetime, from social media profiles and cloud storage accounts to digital wallets and cryptocurrencies. Preparing for the future means ensuring that these assets can be identified, accessed and managed when the time comes. Estate planning that overlooks digital assets is, increasingly, estate planning that is incomplete.

This Wills Month, the conversation should extend beyond simply having a will. South Africans should also ask whether their executor knows where the original document is stored, whether their digital assets have been identified and whether clear arrangements exist to manage them. Taking these relatively simple steps can make a significant difference to those left behind and help ensure that a person’s wishes are carried out as intended.

ENDS