Digital legacy – what do I need to know? What do I need to consider?

Our lives have long since moved beyond the offline world. We write emails, store photos in the cloud, use online banking, streaming services, social media profiles, messaging apps, customer accounts, apps, digital subscriptions and smart devices in the home. Much of this is practical, convenient and has become an integral part of our daily lives.

But what happens to all these accounts, data and contracts if we suddenly can no longer manage them ourselves? For example, following an accident, serious illness or death?

This is precisely where the topic of digital inheritance comes in. And even if it sounds technical at first, at its core it is about something very human: planning ahead, self-determination and taking the burden off loved ones.

Many people eventually draw up a will, a lasting power of attorney or a living will. However, far fewer think about passwords, cloud storage, digital contracts or social media accounts. Yet this is precisely what can lead to major challenges in an emergency: relatives do not know which accounts exist, have no access to important documents, ongoing subscriptions continue to incur costs, or personal memories remain out of reach.

Dealing with your digital legacy at an early stage creates clarity. For yourself – and for the people who will need to act in an emergency.

What exactly does ‘digital legacy’ mean?

The term ‘digital legacy’ refers to everything a person leaves behind in digital form. This includes not only obvious items such as social media profiles or email accounts, but also many areas that are easily overlooked in everyday life.

A digital estate includes, for example, email inboxes, messaging services, cloud storage, digital photo albums, online banking accounts, payment services, customer accounts with online shops, streaming subscriptions, apps, digital contracts, online memberships, websites, blogs, domains, online shops and even cryptocurrencies.

Devices themselves also play a role: smartphones, tablets, laptops, external hard drives or USB sticks may contain important data. They are often password-protected or secured via two-factor authentication. In such cases, a username and password alone are not sufficient to access the content.

Digital inheritance therefore encompasses both personal memories and contracts, financial assets and legal obligations.

Why is digital estate planning so important?

Without clear arrangements in place, relatives often have to go to great lengths to find out which digital accounts, contracts and data even exist in the event of an emergency. This takes time, can be emotionally draining and often leads to uncertainty.

For example: a streaming subscription, cloud storage or an online contract usually continues until it is actively cancelled. If an account cannot be found or the login details are missing, costs may continue to accrue. Orders, memberships or online services can also form part of the estate after death.

It becomes even more difficult when personal memories are involved: family photos, videos, messages or documents are often available exclusively in digital form. Without access, they may be lost or remain inaccessible to relatives.

Financial assets are also included. PayPal balances, online banking, securities accounts, income from digital projects or cryptocurrencies are all part of the estate. Access is particularly sensitive when it comes to cryptocurrencies: without the so-called private key or access to the wallet, an asset may be lost permanently under certain circumstances.

Digital estate planning therefore means more than just writing down passwords. It is about creating a structure: what assets are there? Who is authorised to manage them? And what should happen to the individual accounts and data?

What happens legally to digital accounts?

As a general rule, digital rights and obligations can also form part of an estate. Back in 2018, the Federal Court of Justice ruled that a social media platform’s terms of use can, in principle, be transferred to the heirs. The specific case concerned access to a deceased person’s Facebook account. The ruling made it clear that digital content is not automatically excluded from the estate.

However, this does not mean that relatives always gain access immediately and without difficulty. In practice, providers often require proof such as a death certificate, a certificate of inheritance, a power of attorney or other documents. Some platforms offer their own procedures, such as account deletion, a memorialised status or an estate contact.

This makes it all the more important to specify during one’s lifetime what should happen to one’s digital accounts – and who is authorised to handle them.

The first step: getting an overview

Many people aren’t even sure themselves exactly how many digital accounts they’ve created over the years. Old email addresses, shopping accounts, apps, forums, loyalty schemes, streaming services, cloud storage, newsletter subscriptions and online contracts often pile up without us even noticing.

The first and most important step is therefore to take stock. It is helpful to have an overview of all important digital accounts. This includes:

• Provider or platform
• Username or email address
• Type of account or contract
• Customer number or contract number, if applicable
• Details regarding two-factor authentication
• Preferred action to be taken with the account
• Designated trusted contact

It is not necessary to document every old, unused account in minute detail. On the contrary: dealing with your digital estate is a good opportunity to tidy things up. Accounts that are no longer used can be deleted or closed. It is important to note that simply deleting an app is not enough. The underlying service or contract usually remains in place until the account has actually been deleted or closed with the provider.

Storing passwords securely

A key question is: where and how should login details be stored securely? A simple list can be helpful – but it should not be left openly accessible on a computer or sent unprotected via email. It is better to keep the list in a secure place, for example printed out and stored in a safe location, on an encrypted storage device, or in a reputable password manager.

Anyone using a password manager should also consider emergency access. Some providers allow you to designate a trusted contact who can request access to the digital vault in an emergency. However, it remains important that the trusted contact is aware of this arrangement and knows how to proceed in an emergency.

Particular care should be taken with accounts that use two-factor authentication. Many important services send security codes to a smartphone or use an authenticator app. If relatives know the password but do not have access to the smartphone or the authenticator app, they may still be unable to gain access.

That is why digital contingency planning also involves the question: How can my trusted contact access my smartphone, security codes or recovery options in an emergency?

Appointing a trusted person

Digital estate planning requires trust. After all, anyone granted access to emails, photos, chats, documents or financial accounts gains insight into very personal matters.

That is why it makes sense to appoint a trusted person who can manage your digital estate in the event of an emergency. This could be a family member, a close friend – the important thing is that the person handles sensitive information responsibly.

This trusted person should know:

• that they have been appointed
• where the list of digital accounts is kept
• what powers of attorney or documents are in place
• what wishes apply to individual accounts
• which data should be treated as particularly confidential

The Consumer Advice Centre recommends granting a trusted person written power of attorney and specifying what should happen to individual accounts and data. It is important that the power of attorney also applies ‘beyond death’ if the person is to act after your death.

Power of attorney and wills: what goes where?

Many issues relating to digital inheritance can be addressed through a lasting power of attorney, a digital power of attorney and supplementary provisions in a will.

A power of attorney can specify who is authorised to manage digital affairs if you are no longer able to do so yourself – for example, following an accident or in the event of serious illness. If the person is to be able to act after your death, it should be explicitly stated that the power of attorney remains valid beyond your death.

A will can also specify how your digital estate should be handled. For example, who should receive certain digital assets, who should have access to specific data, or what wishes apply to profiles, photos or online projects.

Important: Login details and passwords should not be included directly in the will. A will may be opened in the event of inheritance and thus become accessible to several people. It is better to have a separate, secure password list that only the authorised trusted person can access.

Anyone who is unsure should seek legal advice – particularly when it comes to significant assets, businesses, cryptocurrencies, online shops, copyright or complex family situations.

What should be deleted, archived or kept active?

Digital estate planning isn’t just about saying, “Here are my passwords.” Just as important is the question of what should happen to individual accounts and data.

Some people want their social media profiles deleted. Others would like a memorialised account or want certain memories to be preserved for their family. Some data may need to be archived, whilst other data should deliberately not be.

It is helpful to set out clear wishes for key areas: Email accounts: Should the inbox be searched, archived or deleted? Are there any important contracts or documents to be found there?

• Social media: Should the profile be deleted, switched to memorialised status or continued? Is there a person who should decide this?
• Photos and videos: Where are memories stored? Which folders or cloud services are important? Who should be given access?
• Finances: What online banking accounts, investment accounts, payment services or digital balances are there? Where can relatives find the necessary information?
• Subscriptions and contracts: Which services need to be cancelled? These may include streaming services, cloud storage, apps, software subscriptions, fitness apps, newspapers, mobile phone or energy contracts.
• Digital projects: Is there a website, a blog, an online shop, income from platforms, domains or digital content with copyright?

Special attention: email accounts, smartphones and the cloud

An email account is often the key to many other digital services. Your email address can be used to reset passwords, find contracts or verify accounts. It is therefore important to be clear about which email accounts are important and how to access them in an emergency.

The smartphone also plays a central role. It contains not only contacts, photos and messages, but often also banking apps, authenticator apps, TAN procedures or passkeys. Without a device PIN or the ability to unlock it, accessing many services can become difficult.

Cloud storage, in turn, often contains personal memories and important documents. Many people store photos, scans, tax documents or family records there. Anyone who wants certain data to be preserved should document its storage location and how they wish it to be handled.

Update regularly

Digital estate planning is not a one-off task. Accounts change, new services are added, old contracts are terminated, passwords are updated, and devices are replaced.

That is why the overview should be checked regularly. A good frequency might be once a year – or whenever something significant changes: a new smartphone, a new password manager, a new bank account, a new cloud storage service or an important new subscription.

It is important to remember that even the best list is only useful if it is up to date and can be found when needed.

Commercial providers: take a close look

There are companies that offer assistance with managing digital estates. At first glance, this may seem like a relief. Nevertheless, you should be very cautious here.

The Consumer Advice Centre points out that the security of such providers can be difficult to assess and there is no guarantee that the provider will still be in business when the time comes. Handling passwords, devices and personal data is particularly sensitive. These should not be handed over to third parties lightly.

Anyone wishing to use external support should examine the scope of services, costs, data protection, security measures and trustworthiness very carefully.

Small steps are enough to start with

At first glance, the topic of digital inheritance seems overwhelming. Many people therefore put it off. However, not everything needs to be perfectly sorted out straight away. The important thing is to get started.

A good first step can be to write down your most important accounts: email, smartphone, online banking, cloud storage, payment services, key subscriptions and social media. You can then add to the list bit by bit.

Talking to someone you trust is also helpful. Knowing that someone is in the know in an emergency is already a big step forward.

Digital end-of-life planning isn’t about controlling every single detail. It’s about providing guidance. Loved ones shouldn’t have to guess what you would have wanted. They should know where to start.

Conclusion: Digital legacy is part of modern estate planning

Our digital lives have long been an integral part of our daily routines. That is why digital legacy is also an essential part of personal estate planning.

Getting organised early on protects personal data, avoids unnecessary costs and makes things much easier for loved ones. An overview of accounts, secure login details, clear wishes and a trusted representative can be crucial in an emergency.

Digital estate planning doesn’t have to be complicated. It starts with simple questions: What accounts do I have? Who should take care of them? What should be kept, and what should be deleted? And where can my loved ones find the necessary information?

Our clients’ staff can contact Viva FamilienService at any time with questions regarding planning, care and support in everyday family life. We help you find your way, clarify the appropriate next steps and make good provisions early on – for yourself and for those close to you.