Digital Assets After Death in Scotland: Protecting Your Online Legacy Under the New Law
Modern life is increasingly lived online. We store photographs in the cloud, manage finances through apps and websites, communicate by email and social media, and increasingly hold valuable digital assets such as cryptocurrency and other blockchain-based assets.
Until recently, there was some uncertainty in Scots law about how certain digital assets should be treated. However, the Digital Assets (Scotland) Act 2026, which came into force on 16 April 2026, has brought much-needed clarity. The new law confirms that certain digital assets can be recognised as property under Scots law, making it easier to understand how they can be owned, transferred and inherited.
While this is an important development, practical difficulties remain. If your family does not know what digital assets you own, or cannot access them after your death, valuable assets and treasured memories may still be lost.
This guide explains what digital assets are, how the new law affects estate planning in Scotland, and the steps you can take to protect your online legacy.
What Are Digital Assets?
A digital asset is something that exists in electronic form and can have financial, practical or sentimental value.
Examples include:
Cryptocurrency and Digital Tokens
Cryptocurrencies such as Bitcoin and Ethereum are perhaps the best-known examples. Some people also own NFTs (non-fungible tokens) and other blockchain-based assets.
The new Digital Assets (Scotland) Act confirms that certain digital assets can be treated as property under Scots law, providing greater legal certainty for owners, beneficiaries and executors.
Social Media Accounts
Accounts on Facebook, Instagram, X, LinkedIn and similar platforms may contain photographs, messages, memories and personal information that loved ones wish to preserve.
Email Accounts
Email accounts often contain financial records, personal correspondence and important documents. They may also provide access to other online services through password recovery systems.
Cloud Storage
Services such as Google Drive, iCloud and Dropbox may contain thousands of photographs, videos and documents that families would not wish to lose.
Online Banking and Investment Accounts
Many people now manage their finances entirely online. These accounts may form a significant part of an estate.
Websites and Domain Names
Personal websites, blogs, online shops and domain names can have financial and commercial value.
Online Businesses
An increasing number of people earn income through digital businesses, content creation, affiliate marketing, subscription services and e-commerce websites.
Loyalty Schemes and Reward Programmes
Airline miles, hotel reward points and shopping loyalty schemes may have value, depending on the provider’s terms and conditions.
Digital Photographs and Videos
These often have no financial value but can be among the most treasured assets left behind.
What Has Changed Under the Digital Assets (Scotland) Act 2026?
Before the Act was introduced, there was uncertainty about whether some digital assets fitted within traditional categories of Scottish property law.
The new legislation addresses that issue by confirming that qualifying digital assets can be recognised as property in Scots law and that the general principles of property law apply to them, so far as appropriate to their nature.
In practical terms, this means there is now greater certainty that:
- Digital assets can be owned.
- Digital assets can be transferred.
- Digital assets can form part of an individual’s estate.
- Digital assets can generally be inherited by beneficiaries.
- Digital assets may potentially be held in trust and dealt with in estate planning arrangements.
For individuals who own cryptocurrency or other valuable digital assets, this is a significant development.
However, the Act does not remove all practical problems. Ownership and access are not always the same thing.
Do Digital Assets Form Part of Your Estate?
In many cases, yes. Assets with financial value will normally form part of your estate and fall under the authority of your executors.
Examples include:
- Cryptocurrency holdings.
- Digital tokens.
- Online investment accounts.
- Revenue-generating websites.
- Online business interests.
- Domain names with commercial value.
However, some digital accounts are governed by contractual terms between the user and the service provider.
For example, while an executor may have authority to deal with the value associated with an account, the provider’s terms and conditions may limit access to the account itself.
Social media platforms, email providers and cloud storage companies often have their own procedures following a user’s death.
This means that executors may still encounter practical obstacles even where ownership is legally clear.
Why Digital Assets Matter in Estate Planning
Historically, executors relied heavily on paperwork to identify assets. Today, many people’s lives exist largely online.
Without proper planning:
Assets May Be Overlooked
Family members may have no idea that digital assets exist. Cryptocurrency portfolios, online investment accounts and digital businesses can easily remain undiscovered.
Access Information May Be Missing
Knowing an account exists is not the same as being able to access it. Without passwords, authentication devices or recovery information, assets may be inaccessible.
Valuable Assets Can Be Lost Permanently
This is particularly true for cryptocurrency. Unlike a traditional bank account, there may be no institution capable of restoring access if recovery information has been lost.
Important Memories May Disappear
Photographs, videos and personal correspondence may be lost forever if nobody can access the relevant accounts.
Challenges Facing Executors
Even under the new legal framework, executors may face a number of practical difficulties. These include:
Identifying Digital Assets
Unlike physical assets, digital assets often leave little visible evidence of their existence.
Obtaining Access
Providers may require:
- Death certificates.
- Confirmation of appointment as executor.
- Additional documentation.
- Court orders in certain circumstances.
Managing Privacy Issues
Data protection and privacy obligations can affect the information that service providers are willing to disclose.
Recovering Cryptocurrency
If private keys, passwords or recovery phrases cannot be found, recovery may be impossible.
Valuing Digital Assets
Cryptocurrency, websites and online businesses may require specialist valuation.
Creating a Digital Asset Inventory
One of the most effective steps you can take is to create a digital asset inventory.
This should include:
A List of Digital Assets
Record all significant online accounts and digital property.
The Nature of Each Asset
Note whether the asset has financial value, sentimental value or business importance.
Service Provider Details
Record relevant websites and account providers.
Access Instructions
Provide guidance on how access can be obtained.
Security Information
Identify where passwords, recovery phrases and authentication devices are stored.
The inventory should be reviewed regularly and kept securely.
Should You Include Passwords in Your Will?
Generally, no. There are several reasons for this:
Security Risks
Wills are not designed to function as password repositories.
Passwords Change
Information can quickly become outdated.
Practical Difficulties
A Will may not be the most secure place to store sensitive login information. A better solution is usually to maintain a separate, secure record that can be updated as necessary.
Using Password Managers
Password management software can help organise and protect digital information.
Benefits include:
- Secure storage of login credentials.
- Easier management of multiple accounts.
- Improved cybersecurity.
- Emergency access features offered by some providers.
If you use a password manager, your executors or trusted family members should know that it exists and understand how access can be obtained if required.
Cryptocurrency and Estate Planning
Cryptocurrency requires particular attention. The new legislation confirms that qualifying digital assets can be recognised as property under Scots law, but that does not solve the practical challenge of accessing them. Consider:
Recording Holdings
Executors cannot administer assets they do not know exist.
Protecting Private Keys
Private keys effectively control access to many digital assets.
Storing Recovery Phrases Securely
Recovery information should be kept safely but remain accessible to those who will need it.
Providing Clear Guidance
Executors may have little experience dealing with cryptocurrency. Without proper planning, significant value could be lost despite the legal protections now available.
Social Media Accounts After Death
Most major social media providers have procedures for dealing with deceased users.
Options may include:
Memorialisation
Some platforms allow accounts to remain online as a memorial.
Account Closure
Family members may be able to request deletion of an account.
Legacy Contacts
Certain providers allow users to nominate someone to manage limited aspects of an account after death. Reviewing these settings should form part of your wider estate planning arrangements.
Digital Assets and Powers of Attorney
Digital assets are not only relevant after death. Loss of mental capacity can create similar difficulties. A Continuing Power of Attorney can allow a trusted attorney to manage financial affairs during your lifetime if you become unable to do so.
When considering Powers of Attorney, it is worth thinking about:
Online Banking
Attorneys may need access to electronic financial records.
Cryptocurrency Holdings
Specific guidance may be required if digital assets form part of your wealth.
Digital Businesses
Websites and online businesses may require ongoing management.
Electronic Records
Important information may exist only in digital form. The new legal recognition of digital assets as property reinforces the importance of considering them during incapacity planning as well as estate planning.
Practical Checklist: Protecting Your Digital Legacy
Consider taking the following steps:
- Prepare a comprehensive inventory of digital assets.
- Review your Will regularly.
- Consider whether your Powers of Attorney adequately address digital assets.
- Use secure password management systems.
- Store cryptocurrency recovery information safely.
- Review social media settings and legacy contact options.
- Keep records updated as circumstances change.
- Obtain professional advice where significant digital assets are involved.
Frequently Asked Questions
Are digital assets now recognised as property in Scotland?
Yes. The Digital Assets (Scotland) Act 2026 confirms that qualifying digital assets can be recognised as property under Scots law, bringing greater certainty regarding ownership, transfer and inheritance.
Can cryptocurrency be inherited?
Yes. Cryptocurrency can generally form part of an estate and pass to beneficiaries. However, access information such as private keys and recovery phrases remains essential.
Can my executor automatically access my email account?
Not necessarily. Access depends on the provider’s policies, privacy obligations and the documentation available to the executor.
Should I put passwords in my Will?
Usually not. It is generally better to keep password information in a separate secure record.
What happens to my social media accounts when I die?
This depends on the platform. Some allow memorialisation, while others permit closure or deletion following a request from family members.
Do I need legal advice?
Professional advice can be particularly valuable if you hold cryptocurrency, operate online businesses, have significant digital assets or wish to ensure your estate planning arrangements remain effective under the new legal framework.
Final Thoughts
The Digital Assets (Scotland) Act 2026 represents an important step forward in modernising Scots law. By confirming that certain digital assets can be recognised as property, the legislation provides greater certainty for individuals, businesses, executors and beneficiaries.
However, legal recognition alone is not enough. Executors and family members still need to know that digital assets exist and understand how to access them. Whether your digital estate consists of cryptocurrency, online investments, cloud-stored photographs, social media accounts or an online business, careful planning can help ensure that valuable assets are protected, important memories are preserved and your wishes can be carried out effectively after your death.
If you need advice and you are looking for an experienced solicitor then please contact our experienced Private Client Team on 01324 622 888 or contact help@randa-fa.co.uk and we would be delighted to assist.
