Much of our identity resides online: our finances, conversations, creative work, and even our memories. From treasured family photos stored in the cloud to cryptocurrency wallets and social media profiles, these digital assets have become an essential part of our lives. But when someone passes away, what happens to all of it?
Unfortunately, traditional estate plans often overlook these digital footprints, overwhelming families and executors. In Ontario, navigating the legal landscape of digital assets can be especially complex, with privacy laws, platform policies, and a lack of clear legislation creating real challenges.
That’s why proactive planning is more critical than ever. Whether updating your will, managing a loved one’s estate, or helping a client prepare for the future, understanding how to protect and pass on digital assets is critical.
This guide will walk you through the essentials of estate administration for digital assets in Ontario, what they are, why they matter, and how to manage them effectively.
At RBHF, our experienced estate lawyers are here to help you secure your digital legacy with clarity and peace of mind.
What Are Digital Assets?
Digital assets are any online or electronically stored accounts, files, or properties owned or controlled by an individual. They can be divided into categories and are often distinct from the physical devices that access them.
Common categories of digital assets include:
- Financial digital assets include cryptocurrency, online bank accounts, and PayPal balances.
- Social digital assets like Facebook, Instagram, blogs, or YouTube channels.
- Personal digital assets such as digital photos, videos, cloud storage, and email accounts.
- Digital business assets include websites, online storefronts, domain names, and intellectual property.
It’s vital to distinguish digital assets from the devices on which they reside. A laptop may belong to the estate, but access to the stored email account can be restricted by provider policies or privacy laws. This distinction is one of many reasons digital assets can be overlooked in traditional estate plans.
Why Digital Assets Matter in Estate Planning
Digital assets can hold immense value, emotionally, financially, and practically. They represent memories, monetary worth, and even one’s posthumous digital identity.
Family photos, messages, and social media content often carry sentimental weight. Financial accounts and monetized platforms like YouTube or Etsy can become sources of income for beneficiaries.
Active digital accounts can be vulnerable to identity theft or fraud if left unattended, making it vital to manage and close them properly.
Having an estate plan in place allows individuals to control what happens to their digital presence after death, including what’s deleted, memorialized, or passed on.
Ontario’s Legal Framework for Digital Assets in Estates
Ontario does not yet have specific, comprehensive legislation dedicated solely to digital assets in estate administration.
Instead, executors and estate lawyers must interpret existing estate laws in conjunction with privacy legislation and service provider agreements.
Current Ontario Estate Laws and Digital Assets
Ontario’s Estate Administration Act gives executors broad authority to manage a deceased person’s property. While this includes digital assets theoretically, access is often restricted in practice.
The Personal Information Protection and Electronic Documents Act (PIPEDA) governs privacy rights and restricts access to personal information, even after death. This can prevent executors from accessing accounts, particularly when providers require user consent never granted before death.
Canada lacks a federal framework, like the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) in the United States, that addresses digital assets explicitly.
Terms of Service Agreements vs. Estate Law
One of the biggest hurdles is the disconnect between provincial estate law and digital platforms’ terms of service agreements (TOS).
Many TOS prohibit third-party access, even to executors with legal authority. Providers like Apple, Google, or Facebook often have their own procedures for deceased users, which may not align with Ontario law.
This jurisdictional complexity, especially when providers operate under U.S. or international laws, can significantly complicate or delay estate administration.
The Role of a Digital Will and Digital Executor
Including digital assets in an estate plan ensures they’re not lost or inaccessible. This can be done by incorporating digital asset clauses into estate planning documents or by creating a separate digital asset memorandum.
Appointing a digital executor, someone specifically responsible for digital property, can also be helpful. This individual can work alongside the primary executor or perform a defined role.
The responsibilities of a digital executor include identifying digital assets, securing access credentials, and carrying out the deceased’s wishes regarding deletion, memorialization, or transfer of digital content.
Executor Responsibilities for Digital Assets in Ontario
Identifying and Cataloguing Digital Assets
Executors should begin by locating all possible digital accounts. This includes checking devices, reviewing emails for subscription notifications, and speaking with family members. A clear inventory can make administration significantly easier.
Creating a list of usernames, platforms, associated emails, and any known passwords (ideally provided by the deceased beforehand) is crucial. If passwords are unknown, executors may need to contact providers and submit documentation to gain access.
Accessing Digital Accounts as an Executor
Executors often need to provide a death certificate, proof of executor status (via probate), and, sometimes, court orders to access accounts.
Many platforms have their own processes:
- Google offers an Inactive Account Manager tool.
- Facebook allows users to appoint a Legacy Contact.
- Apple has a Digital Legacy program.
Two-factor authentication and device-level passwords can present barriers, especially if physical access is unavailable.
Valuation of Digital Assets for Estate Purposes
Not all digital assets have monetary value, but some do.
Cryptocurrency, online business income, and monetized content should be appraised.
Cryptocurrencies are especially challenging due to their volatility and reliance on private keys and wallets.
Other assets, such as domain names or NFTs, may require expert valuation. Some digital assets may also have tax implications if transferred or sold.
Privacy and Security Concerns
Handling digital assets must be done carefully to protect the deceased’s privacy and safeguard sensitive information.
Executors should:
- Avoid logging into accounts on unsecured networks.
- Work with IT or cybersecurity professionals if needed.
- Respect any private or confidential content discovered.
Accessing a loved one’s digital life can raise ethical dilemmas, especially with personal messages or sensitive information. Sensitivity and discretion are key.
Best Practices for Digital Asset Estate Planning in Ontario
Creating a Digital Asset Inventory
Start by documenting all accounts, platforms, digital wallets, and essential online content.
Use secure tools or password managers to store login information. Keep this inventory separate from the will, but reference it in the will.
Avoid listing passwords directly in a legal document that becomes part of the public record.
Legal Tools for Digital Asset Transfer
Include clear clauses in your will granting authority over digital assets. You may also include a memorandum listing assets and instructions.
Use a power of attorney that explicitly mentions digital assets for ongoing control during incapacity. Digital estate planning tools help automate parts of this process.
Designating a Digital Executor
Consider appointing a digital executor with technical knowledge and familiarity with your digital life.
While not yet legally recognized as a distinct role under Ontario law, this person’s responsibilities can be defined in the will.
A digital executor can serve alongside the main executor or act as a consultant for digital matters.
Specific Digital Asset Types: Administration Challenges and Solutions
Cryptocurrency and Digital Investments
Cryptocurrency requires access to wallets and private keys. Without these, assets may be lost forever.
Executors must:
- Locate all wallets (hardware, software, cloud-based).
- Secure private keys or seed phrases.
- Work with experts to determine valuation.
- Report crypto assets for taxation per CRA regulations.
Social Media and Email Accounts
Each platform handles deceased accounts differently:
- Facebook: Allows memorialization or deletion.
- Instagram: Similar to Facebook.
- Google: Offers pre-death planning through Inactive Account Manager.
Executors should follow provider-specific steps and supply the required documentation.
Digital Collections and Purchased Content
Items like Kindle books, iTunes purchases, or software licenses often cannot be transferred due to licensing agreements.
These assets may not be “owned” in the traditional sense.
Planning ahead is key. Transferable licenses or shared family accounts may provide continuity.
Working with Professional Advisors
Digital estate planning is complex. You may need help from:
- An estate lawyer experienced in digital assets
- Financial advisors familiar with digital investments
- Technical specialists who can help retrieve or secure online data
RBHF offers tailored legal services for digital asset planning and administration.
Preparing for the Future: Digital Legacy Planning Tips
To protect your digital legacy, take action now:
- Use planning tools like Google’s Inactive Account Manager and Facebook Legacy Contacts
- Make a digital asset inventory
- Review and update your digital wishes regularly
- Talk to a lawyer about including digital assets in your estate plan
RBHF can help you build a complete estate plan that accounts for your online life.
Key Takeaways
Digital assets are now a crucial component of modern estate planning. Without proactive steps, these assets can be lost, mismanaged, or become a source of conflict. Ontario’s current laws offer some guidance, but many legal and practical gaps remain.
Including digital assets in your will, appointing a digital executor, and working with estate administration lawyers can help you secure your online legacy.
Do you need help navigating estate administration for digital assets in Ontario? RBHF can provide experienced, compassionate, and forward-thinking support.
Contact us today to request a consultation.