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Digital Heirs: How Canadian Law Treats Your Online Assets in Estate Planning

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The information contained herein is for educational purposes only and should not be taken as legal advice, as laws and regulations can change within weeks and render some legal strategies void. For legal advice, contact us today.   

You live in a digital world. Your photos, messages, money, and art all exist online. But what happens to these assets when you pass away? In Canada, the law still works with older ideas. Yet your digital life needs a plan. Here is what you need to know.

What Are Digital Assets?

Digital assets are anything you own online or electronically. This includes social media accounts, emails, digital photos, cloud files, and financial accounts. It also includes cryptocurrencies and NFTs—digital assets that can hold real monetary value. Law defines these assets differently. Some are owned outright. Some only exist under a license or terms of service. That complicates legal control and inheritance.

Why They Matter in Your Estate

These assets matter. They hold financial worth. They have sentimental meaning. You might leave behind family photos in the cloud or digital artworks. If you have cryptocurrency, its loss could cost your heirs. Executors must know these assets exist. Without a plan, your digital life may vanish or get locked away forever.

The Legal Challenges in Canada

Canadian law is playing catch-up. Most provinces do not yet have specific laws dealing with digital assets. That means executors rely on traditional estate law, which may not cover digital accounts. In Ontario, unless your will or power of attorney specifically grants authority, your digital executor may not have legal power to access your accounts. In British Columbia, WESA recognizes executors’ authority over electronic documents. But it does not override the terms of service that platforms impose. (Nihang Law Professional Corporation)

Emerging Legal Reform

Some provinces are taking action. The Alberta Law Reform Institute released a report in 2024 recommending adoption of the Uniform Access to Digital Assets by Fiduciaries Act in Alberta. This would confirm fiduciaries’ power to access digital assets. It would also obligate service providers to cooperate. Similar laws already exist in Saskatchewan, P.E.I., New Brunswick and Yukon. But Alberta has yet to adopt these changes. (Alberta Law Reform Institute)

How to Plan Ahead – Best Practices

  • 1. Inventory Your Digital Assets
Start with a list. Include email accounts, cloud storage, social media, crypto wallets, photos, blogs, and online subscriptions. Note user names and what matters most to you.
  • 2. Appoint a Digital Executor
This is someone tech savvy. This person needs authority and skills. Appoint them either by naming them in your will or as part of a power of attorney document.
  • 3. Include a Digital-Assets Clause in Your Will
Make a clear legal clause. Grant your executor or digital executor the power to access and manage your digital property. Do not include passwords in your will. Instead, give instructions via a safe side letter or digital vault.
  • 4. Use a Secure Method to Access Information

Avoid listing passwords in public legal documents. Use a password manager or encrypted digital vault that only your executor can access when needed.

  • 5. Update Regularly
Your digital life changes fast. Update your inventory. Change passwords. Review who you have appointed to manage your digital legacy.

Why This Matters for You and Your Heirs

This planning ensures mental peace. It prevents misunderstanding and strife. It assists your executor to speed up. It safeguards your digital afterlife and lets your memory survive. Uncontrolled digital turbulence may result in inaccessibility of accounts or value loss.

Conclusion

The internet footprint is an element of your executorship. There is a need to take care of it. Take a definite course of action. Apply your logical understanding to your will while complying with the law. Protect your memories, assets, and values. Do it now. Your loved ones will thank you.
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