Digital Wealth and Legacy Giving: Key Risks for Charities

As our lives become increasingly digital, so too do our estates. From monetised social media accounts to online businesses and cloud stored media, digital assets are rapidly becoming central to modern probate disputes. For charities, which often rely on legacies and bequests, the lack of clarity around digital assets can pose significant risks which can be both financial and reputational.

We explore what digital assets are and why they are becoming increasingly relevant in estate planning.

What are digital assets?

Wealth is no longer confined to bank accounts and physical properties. Today digital assets can include:

• Financial: Cryptocurrency wallets, online bank accounts.
• Commercial: Online businesses, domain names.
• Social/Creative: Monetised social media accounts (e.g. Facebook, Instagram, YouTube), cloud stored media, Non-Fungible Tokens (NFTs).
• Other: Gaming accounts, loyalty points.

According to The UK’s Financial Conduct Authority (FCA), 12% of UK adults owned crypto in 2024, which is up from 4% in 2021. This rise reflects a broader mindset of our current society, where wealth is no longer confined to the likes of bank accounts and physical property, but it can now be stored in the cloud, on blockchains and on digital platforms.

Furthermore, the Digital 2025 Global Overview Report by We Are Social states that global social media users’ identities reached 5.24 billion, which is equivalent to 63.9% of the world’s population. This total has gone up by 4.1% over the last 12 months, with 206 million new user identities added. This reflects the growing scale and value of digital presence.

Why digital assets matter in probate

As The Association of Lifetime Lawyer points out, despite the fact that digital assets are becoming increasingly common, only 20% of UK adults over the age of 30 have included digital assets within their will. This shows us that digital assets are commonly overlooked which may bring new legal and practical challenges for both executors and beneficiaries.

Digital assets present unique challenges in probate administration. According to The Gazette, common issues include:

1. Identification and valuation: Executors may struggle to identify digital assets unless the deceased has provided clear instructions in their will or estate plan. Assets such as cryptocurrency are particularly vulnerable, as they are often stored in secure digital wallets that require specific access credentials. Without these credentials, the assets may become irretrievable. Failure to disclose or provide access to such assets could result in intended beneficiaries, such as charities who may miss out on significant gifts.
2. Valuation fluctuation: Even when the asset is identified, the value of cryptocurrency or online businesses would also fluctuate, which makes it difficult to assess the overall value of the estate accurately.
3. Legal and security issues: Terms of service may restrict access. Some digital content is licensed, not owed, therefore this may not be transferable to the beneficiaries. Even when assets are owned, access can be blocked by device encryption or platform policies. Executors must also guard against fraud, hacking and unauthorised access. Therefore, charities may struggle to access or manage digital gifts due to platform restrictions, encryption, or lack of legal clarity.
4. Unclear ownership: Determining ownership of digital assets can be complex. For instance, a domain name may be jointly held, or a monetised account may raise questions as to whether it forms part of the estate or constitutes a personal gift. Many wills do not specifically address digital assets, which can lead to ambiguity, differing interpretations, and potential litigation.

These probate challenges have direct implications for charities, especially when digital assets are part of a legacy gift.

Risks for charities

Charities named as beneficiaries in wills face unique vulnerabilities when digital assets are involved:

• Lost legacies: If digital assets are not properly disclosed or made accessible, charities may miss out on significant bequests.
• Contested gifts: Ambiguities around ownership or the donor’s intention can lead to disputes, which can potentially delay or reduce the value of gifts to charities.
• Reputational risk: Charities involved in probate disputes, particularly those involving emerging digital assets such as NFTs or influencer accounts, may face unwanted media attention or public scrutiny.
• Access and usability: Legal and practical barriers may prevent charities from accessing digital assets. Platform terms may restrict transferability, and charities may lack the technical expertise required to manage or convert these assets into usable funds.

Given these risks, charities must take proactive steps to protect digital legacy gifts and avoid potential litigation.

 How charities can prepare

To navigate the evolving digital estate landscape, charities should consider the following best practices:

1. Encourage donors to include digital assets in their wills

   Donors should name specific digital assets, such as online businesses or monetised accounts and provide clear instructions for how these assets should be accessed or transferred.

2. Promote secure digital inventories

   Donors should be encouraged to maintain a secure and up-to-date inventory of their digital accounts, passwords, and recovery tools. This information should be stored safely, preferably using encrypted password management software or in a physical safe and not included directly in the will, to preserve confidentiality and security.

3. Appoint executors with digital competence

   Digital estates require careful and informed management. Donors should consider appointing executors who are familiar with digital platforms and understand the legal processes involved in administering digital assets.

4. Prepare for legal challenges

   Legacy teams should be trained to respond to disputes, work with solicitors, and understand the implications digital assets in claims including under the Inheritance (Provision for Family and Dependants) Act 1975 where they could increase the value of the estate.

Charities should also check with executors that they have considered the existence of digital assets and have taken steps to recover or preserve them.

These steps not only protect the charity’s interests but also help honour the donor’s intent in an increasingly complex digital environment.

Final thoughts: A digital future for legacy giving

Digital assets are now central to modern estates. For charities, this means adapting legacy fundraising strategies to include digital wealth, while preparing for the legal and practical challenges that come with it.

As legislation evolves and disputes increase, charities must:

• Stay informed
• Promote responsible estate planning
• Protect donor intent
• Be ready to defend gifts in potential litigation

By taking these proactive steps, charities can honour the generosity of their supporters and ensure that digital legacies are preserved and delivered in accordance with the donor’s wishes.