Inheritance Tax: Digital assets ‘being overlooked’ in estate planning

A significant number of individuals are not including digital assets in their Wills, according to the latest research.

A recent survey conducted by the Law Society found that 93 per cent of people do not include digital assets in their Wills, a significant majority of those surveyed.

Digital assets include emails, social media accounts and digital wallets, which store key passwords, logins and details to online accounts in which important details and information could be stored.

With the rise in digital financial assets, such as cryptocurrency and stocks which may be held digitally through an online account, it’s more important than ever to consider how this may impact your loved ones when creating your Will.

The impact on inheritance tax is also important to consider, as if these assets are not included in your Will, it could create issues further down the line and your estate may not be handled in the most tax-efficient manner.

The reality is that as we move into a more digital world, you need to consider how your digital footprint and assets will be dealt with, much in the same way that more traditional assets such as property, savings and investments would be.

In the same way that you can gift cash assets to named individuals, you can also gift digital assets as well, with the same rules applying in relation to inheritance tax.

How we can help

Talking about your legacy with a stranger can be uncomfortable, but it’s what we do for a living. And with over half of UK adults going about their days without a written last Will and Testament, it’s more important than ever to get talking.

Our friendly and knowledgeable team is here to help you and your family plan for the future in the way you want to.

For help and advice, get in touch with our expert team today.

*The Financial Conduct Authority does not regulate wills or estate planning.*

Source: Law Society