Digital Assets and Probate: A Guide for Irish Solicitors

Digital assets are rapidly evolving and becoming an increasingly common part of clients’ estates. As their prevalence grows, Irish solicitors must be fully prepared to address the legal and practical challenges these assets present during estate administration. This article highlights the key types of digital assets and offers essential considerations for managing them effectively during probate. Importantly, best practice is to identify and document these assets in advance of a client’s death, ensuring they are not overlooked and can be administered in line with the client’s wishes.

1. Social Media Accounts

Social media accounts can hold significant monetary or sentimental value. Influencer accounts on Instagram, TikTok, or YouTube channels, for instance, may generate recurring income and can be considered revenue-producing digital assets as a result. 

Key Considerations:

• Non-transferability: Many platforms include terms of service that make accounts non-transferable upon death. For example, Facebook allows users to designate a legacy contact to manage their account after death, but the account itself cannot be transferred.

• Legacy settings: Some platforms allow account holders to assign a legacy contact or designate how their account should be handled posthumously.

• Proof of authority: Executors may need to provide court documents or death certificates to gain access or close accounts.

Domain Names: Digital Real Estate

Domain names, particularly those tied to businesses or containing premium keywords, can hold immense value. For example, insurance.com was sold for \$35.6 million in 2010.

Tips for Solicitors:

• Identify ownership: Determine if the domain is registered in the deceased's name or through a business.

• Assess value: Work with domain appraisal services if necessary.

• Transfer protocols: Platforms like GoDaddy or Namecheap have transfer processes that often require death certificates and probate documentation.

Cryptocurrencies: Securing Access Is Critical

Cryptocurrencies are one of the most challenging digital assets due to their decentralised nature and complex security systems. Without central control or recovery mechanisms, access to these assets hinges entirely on the possession of certain credentials.

What You Need to Know:

• Storage methods: Crypto can be stored in hot wallets (online), cold wallets (offline, e.g., USB devices), or hosted exchange accounts (such as Coinbase or Binance).

• Access requirements: Without the private keys or seed phrases, accessing the funds may be impossible—even for executors with legal authority.

• Best practice: Encourage clients to securely document all necessary access credentials, such as wallet addresses, seed phrases, and recovery instructions, and include them in their estate planning documents. These should be stored in a secure and trusted location, such as with their solicitor or in a password manager with emergency access settings.

• Example: If a client owns Ethereum (ETH) stored in a hardware wallet like a Ledger Nano device, and the seed phrase is lost or unknown, there is no way to recover or access those assets. The funds could remain locked permanently.

Stocks and Shares: Digital Brokerages

More clients are managing their investments through digital brokerage platforms such as Revolut, eToro, and DEGIRO, which can complicate the traditional processes involved in share transfer during probate. Specific information can be found on our article here 

Key Considerations:

• Valuation: Davy and Goodbody offer probate valuation services, often free of charge, earning revenue from share sales or transfers.

• Ownership confirmation: As there is no central share registry in Ireland, confirm holdings with the company's registrar using a share certificate or dividend statement. Registrars verify ownership via SRN or IVC codes.

• Distribution: Shares can be transferred to beneficiaries or sold and the proceeds distributed, depending on the will and the beneficiaries’ preferences. Digital platforms may have unique procedures, so understanding them in advance is key.

 Practical Guidance for Solicitors

• Start with a Digital Inventory: Encourage clients to maintain a list of digital assets, including login details and value estimates.

• Review Terms of Service: Each platform has unique rules; some assets cannot legally be transferred.

• Coordinate with Specialists: Partner with IT professionals, digital asset valuers, or accountants when necessary.

• Secure Access Early: Delays in locating passwords or seed phrases can make recovery impossible, especially for crypto.

• Educate Executors: Many executors are unaware of digital asset issues—provide them with basic guidance, this can be done on Simple Probate’s Probate Guidance Section. 

Final Thoughts

To effectively manage estates and probate, Irish solicitors must stay informed about digital assets, which include everything from valuable website addresses to hard-to-access cryptocurrency accounts. Handling these assets requires careful planning, in-depth understanding, and timely action. As the laws surrounding digital inheritance change, ongoing education and collaboration will be essential.

Disclaimer: Please note that the information provided in this article is for general informational purposes only and should not be construed as legal advice. It is always recommended to consult with a qualified legal professional for advice tailored to your specific situation. No liability whatsoever is accepted by Simple Probate from any action taken in reliance of the information contained on this website.