This article was originally posted on Today's Wills and Probate
The Property (Digital Assets etc) Bill is a groundbreaking piece of legislation introduced in the UK Parliament that aims to clarify the legal status of digital assets. It aims to, for the first time in British history, provide legal recognition and protection for digital assets, including cryptocurrencies, NFTs, and other forms of digital property, by classifying them as personal property under UK law
Traditionally, personal property has been either “a thing in possession” (tangible, like jewelry or your house) or “a thing in action” (legal rights, like debts). The Bill introduces a third category—Digital Assets—which includes holdings like cryptocurrency, digital art or even photos/videos. It represents a distinct type of property that doesn’t fit neatly into either of the previous categories.
This legislation comes at a crucial time, as public awareness cross over to the majority. A recent poll by Will-Aid, found that 58% of respondents believe it is important to include access to passwords for social media accounts, email, and other digital assets in their Wills.
Today’s Wills and Probate spoke to Dylan O’Brien from BePrepared, one of the largest digital asset solution providers with coverage in several jurisdictions, regarding the implications of this groundbreaking piece of legislation for the wills and probate sector:
TWP: Why is it important for practitioners to understand the implications of this proposed new category?
DO’B: Practically, estate planning professionals must now consider digital assets as legally recognized property during probate and inheritance planning — it will no longer be up to the personal awareness of the planner as to whether they are considered in a will. This Bill will allow for clearer legal pathways in distributing or safeguarding these assets upon death, ensuring clients’ digital legacies are protected and accurately accounted for. Further, it will help judges deal with complex cases where digital holdings are disputed or form part of settlements.
TWP: How does progress in the UK compare with other jurisdictions
DO’B: BePrepared operates across 6 countries, and various jurisdictions – so one of our challenges was adapting the software to fit with the various legislative differences over time. The US, Australia, and Canada are at varying stages regarding digital asset legislation. The US has seen some progress through the Uniform Law Commission’s fiduciary access laws, while Australia and Canada are developing frameworks that largely follow international consensus but lag in legal recognition compared to this Bill. The UK’s proactive stance positions it at the forefront of integrating digital assets into estate law.
TWP: What do practitioners need to know about digital asset access?
DO’B: Recent legal cases, including Leonard v Leonard, have highlighted the difficulty in accessing digital assets post-mortem. It is widely understood that access to email accounts, photos, and crypto holdings is proving incredibly challenging, leading to lengthy and drawn out estate administration. More importantly, through information held in the meta-data of these digital assets, there is often evidence that could help where estates are disputed.
This Bill addresses the ownership aspect but doesn’t resolve issues related to accessibility for executors and heirs. Estate planners must be proactive, and put systems and processes in place in order to prevent access being a significant hurdle.
TWP: How is this impacting interest in technology
DO’B: We serve primarily law firms, and even in the short time since the introduction of the Bill, we’ve seen a massive increase in recognition from firms and clients themselves that they own digital assets — even if it’s just an email account or mobile phone – and that these assets have a substantial impact on the administration of their estate. Interestingly, this is not an issue just younger clients are recognising. Our data clearly shows that mature clients are proactively solving this issue to ensure their children aren’t forced to deal with more complexity than need be.
BePrepared has been established in the UK since 2019, and now serves over 50,000 users here alone. In the last 12 months, we’ve seen an order of magnitude rise in the number of vaults our firms are creating, and what we’re seeing in England and Wales since the introduction of this Bill is a sizeable rise (68%) in enquiries from firms who recognise they need to both educate clients on their responsibilities, and have solutions to share with them to help. Whatever happens with The Property (Digital Assets etc) Bill, the effect has been to galvanise people to become better prepared; which can only be a good thing.
Today’s Wills and Probate was speaking to Dylan O’Brien of BePrepared
