Most people imagine their estate as a combination of their home, financial accounts, personal items, insurance plans, and family heirlooms. Many do not stop to consider the large collection of digital property that also forms part of their estate. As life becomes increasingly digital, the question of what happens to that information becomes more important. Families often struggle to access online accounts, retrieve important documents, or manage digital subscriptions after someone passes away because these items do not follow the same rules as physical belongings.

Digital assets are not just for tech-savvy individuals. They affect nearly everyone. They include photos stored in the cloud, emails, online banking, cryptocurrency, business assets, and even loyalty points. British Columbia residents now rely on digital platforms in many aspects of their daily lives, which creates both convenience and risk. Without clear instructions, families are forced to navigate company policies, privacy restrictions, and legal uncertainty during an already stressful time.

Understanding how digital estates work is the first step toward making informed decisions. British Columbia has its own laws concerning estates, privacy, and access to information. Families must understand these rules before taking any action. This guide explains what digital assets are, how they are treated after a person passes away, what limitations loved ones may face, and how to plan ahead to protect these assets.

What Are Digital Assets?

Digital assets include any information or property stored electronically. They can have financial, sentimental, or practical value. Some are only accessible through login credentials or two-factor authentication. Others may be located on hardware such as a phone, USB drive, laptop, tablet, or server.

Digital assets generally fall into four main categories:

Personal and sentimental digital property

These hold emotional value and often matter most to families. They include stored photos and videos, emails, messages, social media accounts, personal websites, voice messages, and digital documents. Losing access to these items can be painful for loved ones.

Financial and commercial digital assets

These carry monetary value. Examples include online banking and investment accounts, cryptocurrency wallets, digital payment platforms, online businesses, domain names, monetized social media or YouTube channels, and e-commerce accounts. These assets can disappear permanently if access details are not clearly documented.

Utility and subscription accounts

These have little long-term value but create complications if unmanaged. They include online utility accounts, streaming services, memberships, cloud storage plans, and auto-billing services. Without access, subscriptions may continue charging long after someone passes away.

Personal identification and government accounts

Many essential documents and records are now stored online. These accounts include My Service Canada, CRA MyAccount, health portals, and digital copies of identification. Executors often need this information to complete tax filings and settle the estate.

Why Digital Assets Can Be Difficult to Access After Death

Digital assets are protected by strict privacy rules. Even when someone has passed away, companies rarely allow access without legal authority. Families are often surprised to learn that they are unable to retrieve sentimental information or financial records unless a proper estate plan exists.

Several issues can arise:

Password protection

A large percentage of digital information can only be accessed through a password or PIN. Many people use two-factor authentication, which often sends a code to a phone that family members cannot unlock. Without logins, some assets are impossible to retrieve.

Corporate privacy policies

Tech companies such as Apple, Google, Facebook, Amazon, and Microsoft have policies that restrict access to user accounts. These policies are designed to protect the user’s privacy, even after their death. Some companies will not provide access to accounts at all, even to the executor, unless the deceased person explicitly granted permission before passing away.

Data stored in foreign jurisdictions

A large portion of digital information is stored outside Canada. These providers follow their own jurisdiction’s privacy laws. Access may require additional documentation or may be denied entirely.

Digital assets not recognized as “property”

British Columbia estate law applies mainly to tangible property, financial accounts, or assets that have clear monetary value. Many digital items are treated differently. Social media accounts, photos, and emails are often considered licensed content rather than owned content, which means they cannot be transferred in the same way as physical assets.

Lack of instructions in the Will

Even if someone writes a Will, they must include specific wording that addresses their digital property. Our LC Notary often meets clients who are unaware that their digital information requires explicit planning. A Will that does not provide specific provisions for digital assets and their management can leave an executor without proper guidance or legal authority.

If digital assets are not properly addressed within someone’s estate plan, they may be permanently lost or inaccessible. This is especially concerning for cryptocurrency, which cannot be recovered without private keys.

How Digital Assets Are Treated Under BC Law

British Columbia uses the Wills, Estates and Succession Act (WESA) to govern most aspects of estate administration. Although WESA applies to the distribution of “property”, it does not define digital assets in a detailed way. As a result, the treatment of digital assets depends on several factors:

A. Who can access the accounts?

Only two people can legally manage a deceased person’s digital estate:

‍

1. The executor named in the Will; and
2. The administrator appointed by the court, if there is no Will in place

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However, please keep in mind that even appointed executors may face limitations. Service providers may still restrict access, unless explicit consent was given during the person’s lifetime.

B. What counts as “property”?

Digital assets fall into two categories: 

• Owned assets (cryptocurrency, digital business accounts, downloadable files)
• Licensed assets (email accounts, social media accounts, software, cloud services)
  

Licensed assets cannot always be transferred or inherited.

C. Intellectual property

Creators who produce original digital content may hold intellectual property rights. These rights can pass to beneficiaries, but the hosting accounts themselves may not.

D. Privacy and anti-hacking laws

Even an executor is not permitted to “hack” an account. Unauthorized access can be considered unlawful under Canadian privacy laws.

These laws mean that digital estate planning requires clear and explicit instructions.

Why Digital Estate Planning Matters

Digital assets often carry:

• sentimental value
• long-term financial value
• tax-related information
• business assets
• stored records needed by the executor
  

A missing password can delay estate administration for months. Families may also lose irreplaceable memories. Clear planning reduces stress and prevents unnecessary conflict.

LC Notary often meets clients during emotional times, and the loss of digital information is frequently one of the most painful issues. Photos, emails, and voice messages are often more treasured than physical items.

While digital estate planning helps families avoid these problems, it could also ensure that an executor can perform their duties. If you want to learn more about how executors handle estates in BC, you can read our post “What Happens If You Die Without a Will in BC?”.

What Your Executor Can and Cannot Do

Executors have legal authority to manage a deceased person’s estate, yet they must still follow strict privacy laws. They can speak with service providers, submit the death certificate and estate documents, request that accounts be closed or data exported, and manage digital assets that qualify as property. Even with this authority, there are limits. Executors cannot log into someone’s accounts without permission, bypass passwords, impersonate the deceased, or obtain information that a company refuses to release. These restrictions show why planning ahead is so important.

How To Plan for Your Digital Assets in BC

A digital estate plan gives your executor the authority, instructions, access, and clarity needed to manage your online information. The main steps include:

1. Create an inventory of your digital assets

List your accounts, login locations, devices, subscriptions, financial platforms, cloud services, cryptocurrency wallets, business tools, and important documents. Even a simple list helps your executor know where to start.

2. Store passwords safely

While this should be obvious to everyone, do not place passwords in your Will. Use a password manager, a digital vault, or an encrypted USB, and ensure your executor can access the master password.

3. Add digital asset clauses to your Will

Your Will should grant your executor authority to handle digital property. 

4. Prepare a Power of Attorney

A Power of Attorney allows someone to manage your financial digital accounts if you become unable to act. This covers online banking, payments, and digital business platforms.

5. Set preferences for your social media

Platforms like Facebook, Google, and Apple offer legacy tools that allow you to choose who can manage or download your data.

6. Outline your wishes for sentimental items

Specify whether your family should have access to your photos, videos, emails, or other personal files.

7. Identify digital assets with financial value

Make it clear which items are valuable, how they can be accessed, and who should receive them. This is vital for cryptocurrency or online businesses.

8. Protect your digital business

Provide login access instructions, continuity guidance, and the location of important client information. This helps prevent your business from shutting down unexpectedly.

How LC Notary Helps Protect Your Digital Estate

LC Notary supports clients with a wide range of estate planning services that help organize and protect digital information. These include:

• Developing a custom-tai`lored estate plans through a comprehensive assessment of assets and family needs
• Preparing a legally sound Will including digital asset clauses
• Creating Powers of Attorney
• Preparing Representation Agreements
• Advising on family transfers or estate structures
• Supporting clients through their estate planning journey
  

Our team focuses on practical solutions and clear explanations. Many clients appreciate the ability to work with professionals who understand the challenges families face. LC Notary also supports families during transitions such as house purchases, mortgage refinancing, or downsizing. You can learn more about real estate services here.

Digital assets often intersect with real estate, taxes, and family decisions. Creating a structured plan helps families avoid disputes and reduces stress during difficult times.

Why Planning Now Saves Your Family Stress Later

Digital assets are often overlooked because many people assume their family will naturally gain access to their accounts and files; however, this rarely happens. Technology companies place a strong focus on user privacy, and most platforms restrict access unless the owner gave clear instructions before passing away. When those instructions are missing, families must navigate a long and emotionally-difficult process that can add stress during an already challenging time.

Comprehensive planning helps prevent unnecessary conflict and protects sentimental items that families may cherish for years. It also reduces delays during estate settlement, preserves the financial value of digital property, and gives your executor the guidance they need to carry out their responsibilities. Proper planning lowers the risk of legal complications and prevents the loss of important documents or records. Taking the time to outline your wishes is a simple and effective way to protect your family and make their role much easier.

Final Thoughts

Digital assets form a growing part of everyday life for many BC residents. They are often tied to personal identity, financial value, and treasured memories. Without proper planning, these assets may become inaccessible or lost. British Columbia families benefit greatly from taking the time to organize their digital property and include it in their estate plan.

A Will, Power of Attorney, and Representation Agreement are essential tools that ensure your executor and family have the authority they need. LC Notary supports clients at every stage of their planning journey and provides guidance to help families feel confident about their future.

For expert guidance on creating or updating your estate plan, please contact us via our website or by phone to book a consultation.

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