How Millennials Can Secure Their Digital Assets?

Indian millennials are increasingly getting familiar with digital financial life, including digital credit and debit card payments. Whether for short-term or long-term goals, millennials prefer digital financial products and other digital assets. The term “Digital Asset” today includes items such as cryptocurrencies, an online wallet, an individual's social media accounts, and their cloud drive — all of which are considered a portion of your digital estate as per the new digital estate planning regulations being introduced in India.

The entire wrath of the existence of the millennials is closely tied to digital media. Their digital footprints are further guarded by online passwords and verification codes. With such a digital-savvy existence and lifestyle, it’s high time for millennials to rethink their digital legacies. With the increased adoption of digital technology, especially by the younger generation of Indians (millennials), digital estate planning is becoming more essential for protecting the user's online assets from potential misuse or loss due to unanticipated events occurring to that user.

In this blog, we’ll talk about why millennials should rethink safeguarding their digital assets and how they can do that.

Rethinking Estate Plans

The pandemic was a wake-up call for the millennials to rethink their plans in life, including the most difficult decisions like finances and assets. Making a Will may not be the first thing that comes to mind when life is ideal and secure, but the uncertainty of recent years has emphasized the importance of planning your digital legacies well. 

In India, the Indian Succession Act, 1925, does not expressly recognize digital assets in Wills. Wills have also been excluded from the ambit of the Information Technology Act, 2000. However, users can include instructions for the digital assets legally while drafting Wills, and platforms like AasaanWill help to draft such a valid Will securely and easily. 

More than half of millennials out there still haven’t written a Will. The reasons are manifold – lack of time, lack of knowledge, ignorance, or confusion. But the pandemic did one good thing for all – made them realize the importance of future planning, and the modern estate plan allows you to include every type of online accounts (e.g., bank accounts, e-wallets, stock portfolios), as well as any other types of income-generating content, like a YouTube channel.

For example, many crypto investors have been unable to access thousands of rupees worth of cryptocurrency assets due to not including either an executor or a nominee-related detail in their Wills. Designating a digital executor would allow them to legally access and distribute virtual assets.

The Missing Piece- Digital Estate Planning

Millennials have largely overlooked that their digital footprint (from banking apps to social media accounts) collectively makes up their digital estate. Presently in India, the legal system has partially recognized digital assets through statutes like the Information Technology Act, 2000, and the Digital Personal Data Protection Act, 2023.

Nevertheless, there is still no specific legislation providing a detailed framework for digital inheritance, which implies that many families will be left to the mercy of the relevant rules of service providers, which came into force upon the death of an individual, which would frequently result in digital accounts being permanently locked and secured.

To deal with the situation properly, estate planners suggest the following:-

• Preparation of an Inventory of Digital Assets, which lists e-mail accounts, investments, and licenses.

• Safekeeping of passwords through the medium of password managers.

• Appointing a digital executor who can handle assets such as cryptocurrencies, intellectual property rights, and cloud storage.

For example, a Delhi entrepreneur’s family faced great difficulty for months after his untimely death to access essential business data since his account credentials and executor directives were not properly recorded—something which could have been easily avoided with proper digital estate planning.  

Discuss the Taboo Topics

Nobody likes to hear that their death might be near or that everyone’s going to die one day, even if it’s the harsh truth. Indian society considers money, talking, or discussing property as taboo. But the millennials realize that these taboo topics are to be discussed if you want a secure future with everyone in the know. Discussion about the inheritance of digital property clarifies ownership and access rights to ensure that loss of online property due to lack of knowledge or lack of legal understanding is avoided.

Most millennials are unaware of their parents’ passwords to their online accounts. Imagine something unfortunate happens, and you need access to those accounts. What’s the solution?

With numerous online accounts and the responsibility of looking after your aged parents and family, preparing a Will is the wise decision. By mentioning details of the account as well as the naming of the digital executor in a Will, it aids heirs to lawfully access the digital property under Indian succession laws. Professionally managed services like AasaanWill make sure that every clause of the Will is in accordance with Indian laws, covering both physical and digital property within one unified document.

Consider directing how your digital executor can manage your digital assets in your Will after you, as wrapping up an entire line of property is a daunting task, and truth be told, millennials aren’t all set to prepare for the next generation. Therefore, appointing an executor to manage your digital and physical assets is one effective approach.

Wrapping Up

The pandemic was an eye-opener for the millennials to their approach to estate planning, future security, handling finances, and guarding digital assets. With increasing digital footprints today, the ideal way to be prepared is to discuss uncomfortable topics and let your entire family know about your plans.

Being in the sandwich generation, where you, as a millennial, need to look after yourself and your parents, can be overwhelming. To manage your responsibilities, planning smartly is crucial. Early and smart planning helps avoid inheritance disputes and ensures continuity of digital operations or revenue from monetized accounts.

Now that everything is going digital, creating your Will and protecting your digital legacy is not an option — but essential. With professional Will-drafting platforms like AasaanWill, securing both physical and digital assets is simple, affordable, and legally sound.

Need help in writing or updating your Will? Contact us, and our experts will take it from there.