In today’s world, a significant portion of our lives, memories, and even wealth exists in a digital format. We meticulously curate photo libraries, build extensive music collections, and invest in digital goods. A common and dangerous assumption is that these valuable digital assets will automatically pass to our loved ones, just like our physical belongings. However, the reality is far more complex, as an alarming number of these assets are governed by restrictive terms of service that can prevent them from being inherited.
1. Your Email Account
Your email account is the central hub of your digital life, containing personal correspondence, financial records, and sentimental messages. However, you don’t own your email account; you have a license to use it from providers like Google or Yahoo. Their terms of service often state that the account is non-transferable and may terminate upon your death. Gaining access, even for a grieving family member, can require a court order and still may only provide limited data, not full control.
2. Social Media Accounts
Your social media profiles on platforms like Facebook and Instagram are filled with years of photos, posts, and connections. Most platforms have policies for “memorializing” an account, which freezes it as a tribute but doesn’t transfer ownership. Your family cannot log in, post new content, or download all the data without prior arrangements. These memories are locked behind a corporate policy, making them non-transferable digital assets.
3. Digital Music and Movie Collections
That extensive library of music on iTunes or movies on Amazon Prime Video feels like a collection you own. In reality, you’ve purchased a license to access the content, not the content itself. These licenses are typically non-transferable, meaning your multi-hundred-dollar collection cannot be passed on to your children. When you die, that license terminates, and the value of your collection vanishes into the digital ether.
4. E-books and Audiobooks
Just like with music and movies, your Kindle e-book library or your Audible audiobook collection is not a set of items you can bequeath. You are licensing the right to read or listen to the content on your account. The terms of service almost universally prohibit the transfer of these licenses to another person. Your family cannot inherit your library, making these cherished digital assets effectively worthless after your death.
5. Software Licenses
The expensive software you purchased for work or a hobby, such as Adobe Creative Suite or Microsoft Office, is also based on a personal license. This license is granted to you and you alone. It cannot be legally transferred or resold, and it certainly cannot be inherited by a family member. The license dies with you, and your family would have to purchase the software again if they wanted to use it.
6. In-Game Items and Virtual Currency
Gamers can spend thousands of hours and real dollars acquiring virtual items, characters, and currency in online games like World of Warcraft or Fortnite. These are valuable digital assets within the game’s ecosystem. However, the game’s End User License Agreement (EULA) almost always states that you have no actual ownership of these items. The accounts and all items within are the property of the game company and cannot be transferred or inherited.
7. Cloud Storage Accounts
Services like Dropbox, iCloud, and Google Drive hold a treasure trove of personal and professional documents, photos, and backups. Much like email accounts, these are licensed services, and the terms often restrict access for anyone but the primary account holder. Without the password, your family may need to go to court to prove their right to access these files. The process can be arduous and may not result in full access.
8. Website Domain Names
While a domain name can be considered property and often can be transferred, the process is not automatic. If your family doesn’t know the registrar, the login details, or when the renewal is due, the domain can easily expire. Once expired, it can be purchased by someone else, and any website or business attached to it will go down. Proactive planning is required to ensure this digital real estate is passed on.
9. Loyalty Points and Airline Miles
Many people accumulate a significant value in credit card reward points, hotel loyalty points, and frequent flyer miles. Whether these can be transferred upon death depends entirely on the policy of the specific company. Many programs state that the points expire upon the death of the account holder. Your family may have a small window to claim them, but often these valuable digital assets are simply forfeited.
10. Online Subscriptions
Your recurring subscriptions to services like Netflix, Spotify, or various news outlets do not transfer. While this may seem obvious, if they are on auto-pay from a credit card, the charges may continue long after death. Your executor will have the tedious task of hunting down and canceling each subscription individually. There is no “inheritance” of the service, only the liability of the recurring payments.
11. Cryptocurrency
Cryptocurrency like Bitcoin or Ethereum is a unique digital asset because it can be inherited, but only if you plan meticulously. If your private keys—the passwords that grant access to your crypto wallet—are lost, the currency is gone forever. If your family doesn’t know the keys exist or where to find them, your investment is permanently locked away and inaccessible.
12. Health and Medical Data
Your digital health records, stored in patient portals and health apps, contain your entire medical history. Due to strict HIPAA privacy laws, accessing this information after a person’s death is incredibly difficult for family members. While they may have a right to some information, gaining full access to the digital records is a complex legal process.
Plan for Your Digital Afterlife
The default for most digital assets is that they cannot be inherited, which can lead to the loss of sentimental value, financial assets, and critical information. It is essential to create a digital estate plan. This involves inventorying your digital life, understanding the terms of service for each platform, and leaving clear instructions and access information for your executor. Without a plan, much of your modern life’s work and memories could simply disappear.
What digital asset would you be most upset about your family losing access to? Share your thoughts in the comments.
Read More:
Digital Subscriptions You Forgot You Had That Auto-Renew
10 Estate Planning Decisions That Spark Family Resentment
The post 12 Digital Assets That Don’t Transfer to Your Family When You Die appeared first on Clever Dude Personal Finance & Money.
