Digital Assets in Estate - A Modern Challenge

In our increasingly digital world, traditional estate inventories are no longer sufficient. Digital assets have become a significant part of many people's wealth, yet they're often overlooked or forgotten during the estate inventory process.

This guide will help you identify, value, and properly handle digital assets when completing an estate inventory.

What Are Digital Assets?

Digital assets encompass any valuable digital property or accounts that exist only in electronic form. These can be broadly categorized into several types:

Financial Digital Assets

• Cryptocurrencies (Bitcoin, Ethereum, etc.)
• Digital investment accounts (online brokers, robo-advisors)
• Online banking accounts
• Digital payment services (PayPal, Swish, etc.)
• Loyalty points and rewards with monetary value

Intellectual Property

• Domain names and websites
• Digital art and NFTs
• Online content (blogs, YouTube channels)
• Digital music and media
• Software and app licenses

Personal Digital Assets

• Social media accounts with commercial value
• Email accounts containing important information
• Cloud storage with valuable files
• Digital photos and videos
• Gaming accounts with valuable items

The Challenge of Digital Assets

1. Invisibility

Unlike physical assets, digital assets leave no paper trail. They exist only in the digital realm, making them easy to overlook.

2. Access Issues

Digital assets are typically protected by passwords, two-factor authentication, and encryption, making access challenging for heirs.

3. Valuation Complexity

The value of digital assets can fluctuate dramatically, especially cryptocurrencies, making accurate valuation difficult.

4. Legal Uncertainty

Laws regarding digital inheritance are still evolving, creating uncertainty about rights and obligations.

How to Identify Digital Assets

Start with Digital Footprints

• Review email accounts for account notifications
• Check browser bookmarks and saved passwords
• Look through smartphone apps and accounts
• Examine computer files and documents
• Review bank and credit card statements for digital service charges

Common Places to Look

• Password managers (LastPass, 1Password, etc.)
• Browser saved passwords
• Smartphone apps and notifications
• Email confirmations and statements
• Tax documents showing digital income

Important Documents to Find

• Cryptocurrency exchange account information
• Digital wallet private keys and seed phrases
• Online investment account details
• Domain name registrations
• Software license agreements

Cryptocurrencies - Special Considerations

Types of Cryptocurrency Storage

Exchange Accounts

• Stored on platforms like Coinbase, Binance, or Kraken
• Easier to access with login credentials
• Subject to exchange policies on inheritance

Hardware Wallets

• Physical devices storing cryptocurrency offline
• Require PIN codes and recovery phrases
• Most secure but challenging for inheritance

Software Wallets

• Apps or programs on computers/phones
• Protected by passwords and seed phrases
• Vary in security and accessibility

Paper Wallets

• Physical documents with keys printed
• Highly secure but easy to lose or destroy
• No digital backup if lost

Accessing Cryptocurrency

1. Find the private keys or seed phrases
2. Identify which cryptocurrencies are held
3. Determine the storage method (exchange, wallet, etc.)
4. Value the holdings at the date of death
5. Transfer to heir-controlled accounts

⚠️ Critical Warning: Without private keys or seed phrases, cryptocurrency may be permanently lost. Unlike traditional banks, there's no customer service to help recover lost access.

Valuation of Digital Assets

Cryptocurrency Valuation

• Use the market price on the date of death
• Document the source of valuation (CoinMarketCap, exchange rates)
• Consider multiple exchanges for accurate pricing
• Account for any locked or staked tokens

Other Digital Assets

• Domain names: Use comparable sales or professional appraisal
• Online businesses: Calculate based on revenue/profit multiples
• Digital art/NFTs: Use marketplace valuations
• Gaming accounts: Check specialized marketplaces

Documentation Requirements

• Screenshots of account balances
• Transaction histories
• Professional appraisals for valuable items
• Market rate confirmations

Legal and Tax Implications

Swedish Tax Authority Requirements

• All digital assets must be included in the estate inventory
• Cryptocurrency gains may be subject to capital gains tax
• International digital assets require special attention
• Professional tax advice may be necessary

Inheritance Rights

• Digital assets are generally treated like other property
• Terms of service may affect transferability
• Some accounts may not be transferable by design
• Legal consultation may be required for complex situations

Practical Steps for Heirs

Immediate Actions

1. Secure access to the deceased's devices
2. Document all digital accounts found
3. Change passwords on critical accounts
4. Contact service providers about account status
5. Preserve evidence of digital asset ownership

Documentation Process

1. Create an inventory of all digital assets
2. Take screenshots of account balances
3. Save transaction histories
4. Document access methods used
5. Record valuation sources

Professional Help

Consider professional assistance for:

• Large cryptocurrency holdings
• Complex digital business assets
• International digital assets
• Technical recovery challenges

Preventing Future Problems

For Asset Owners

• Create a digital asset inventory
• Share access information with trusted individuals
• Use a password manager with emergency access
• Document cryptocurrency storage methods
• Include digital assets in your will

Digital Estate Planning Tools

• Password managers with emergency access
• Digital estate planning services
• Cryptocurrency inheritance solutions
• Legal documents specifically addressing digital assets

How Veyla Handles Digital Assets

Veyla's AI-powered platform includes specialized support for digital assets:

✅ Digital Asset Discovery: Guided process to identify all digital holdings ✅ Cryptocurrency Support: Expert help with crypto valuation and access ✅ Documentation Assistance: Proper recording for Tax Authority compliance ✅ Expert Consultation: Access to specialists familiar with digital inheritance ✅ Secure Processing: Encrypted handling of sensitive digital information

Common Mistakes to Avoid

1. Ignoring digital assets in the estate inventory
2. Attempting unauthorized access to accounts
3. Failing to value assets at the date of death
4. Not documenting the recovery process
5. Overlooking terms of service restrictions

The Future of Digital Inheritance

As digital assets become more prevalent, laws and procedures will continue to evolve. Stay informed about:

• New regulations regarding digital inheritance
• Improved tools for digital estate planning
• Enhanced security measures for digital assets
• Professional services specializing in digital estates

Conclusion

Digital assets represent a growing portion of modern wealth, but they require special attention during estate inventories. The key is thorough investigation, proper documentation, and professional help when needed.

Don't let valuable digital assets be lost forever due to lack of planning or knowledge. Whether you're dealing with a current estate or planning for the future, understanding digital assets is essential in our digital age.

Need help with digital assets in your estate inventory? Start your estate inventory with Veyla today →

This guide provides general information and should not be considered legal or financial advice. For complex digital asset situations, consult with qualified professionals.