Digital Assets and Estate Planning in New Zealand: What You Need to Know
Digital assets have become an increasingly integral part of our lives, and our estates. From cryptocurrencies and NFT’s to social media profiles and cloud storage, these intangible assets carry both financial and sentimental value.
In New Zealand, the shift toward digital investment has gained momentum, particularly with the recent announcement that Sharesies, a popular retail investment platform, will begin offering cryptocurrency trading from August 2025. This move marks a significant milestone in the mainstream acceptance of digital currencies like Bitcoin and Ethereum, which were once viewed with scepticism and associated with volatility and risk.
As more New Zealanders diversify their portfolios to include digital assets, the need to address these in estate planning has become increasingly urgent. Under New Zealand law, digital assets occupy a complex space, straddling the line between personal property and contractual rights. Unlike physical possessions or traditional financial accounts, access to digital assets is often governed by the terms of service of overseas technology providers.
This can create significant legal and logistical hurdles for executors, who may be required to navigate foreign privacy laws or obtain court orders just to access an account. Without the correct credentials or clear instructions, valuable digital assets can become permanently inaccessible. As a result, estate planning must evolve to reflect the realities of the digital age, ensuring that these assets are properly documented, securely stored, and clearly addressed in legal instruments like wills and enduring powers of attorney.
What Are Digital Assets?
Digital assets refer to a broad spectrum of online and electronic possessions that exist in digital form. These can include cryptocurrencies like Bitcoin and Ethereum, NFTs (non-fungible tokens), and various types of online accounts such as email, social media, and cloud storage. They also encompass digital photos and videos, domain names, websites, online banking and investment accounts, and even subscription services like Netflix or Spotify. While some of these assets hold clear monetary value, others carry significant sentimental or reputational importance. Regardless of their nature, all digital assets require careful consideration and planning to ensure they are properly managed and transferred in the event of death.
Key Estate Planning Considerations for Digital Assets
New Zealand’s Administration Act 1969 and the Wills Act 2007 provide the foundation for estate administration, but they predate the digital age and don’t specifically address digital assets. However, courts are increasingly recognising digital assets as part of a deceased person’s estate, provided proper documentation exists.
Appointing a Digital Executor
While your primary executor or executors appointed under your will are responsible for managing your overall estate, you can also appoint a digital executor. Someone specifically tasked with handling your digital assets.
A digital executor should be tech-savvy and trustworthy, as they may need to navigate various platforms, privacy policies, and terms of service agreements, often with overseas providers.
You can nominate a digital executor in your standard will. This person does not automatically gain ownership of your digital assets, but they are granted the authority to manage them according to the instructions you have outlined in your will. Their responsibilities may include accessing digital accounts, transferring or deleting data, retrieving stored files, and ensuring your online presence is handled in line with your wishes.
It’s important to note that access to many digital platforms is governed by strict privacy laws and terms of service, which may require proof of death or even a court order. To help your digital executor carry out their duties effectively, you should provide clear instructions in your will and maintain a secure inventory of login credentials and recovery methods.
Appointing a digital executor is a proactive way to ensure your digital legacy is preserved, your privacy is protected, and your estate is administered smoothly. If you are unsure how to include this in your will, it’s best to seek legal advice to ensure your wishes are clearly documented and legally enforceable.
Include Digital Provisions in Your Will
If digital assets are of concern to you, your will should specify the following:
- Who inherits each asset;
- Who manages them; and
- What should happen to each account or file
This clarity can prevent disputes and ensure your wishes are respected. It also helps your executor navigate legal and platform-specific hurdles, especially since many digital service providers are based overseas and may require court orders for access
Inventory and Documentation
A crucial first step in managing your digital estate is to create a detailed inventory of your digital assets. This inventory should include the names of each account and the platforms they are associated with, along with usernames, securely stored passwords, and any recovery methods such as two-factor authentication. It’s also helpful to include specific instructions for each asset, whether it should be deleted, memorialised, or transferred to someone else. This list should be reviewed and updated regularly to reflect any changes and stored in a secure location. Taking the time to document this information thoroughly can make a significant difference in ensuring your digital legacy is preserved and properly managed.
Secure Password Storage and Transfer
Access is everything when it comes to digital assets. Without the correct credentials, even the most valuable digital holdings can become permanently inaccessible. One of the most effective ways to manage this risk is by using a reputable password manager that offers features like emergency access or legacy contact options, allowing a trusted person such as your digital assets executor to retrieve your credentials if needed and manage the account after death.
Alternatively, you might choose to store your passwords in a sealed physical document kept with your lawyer or in a secure location such as a safe deposit box. While both these methods can be effective, it carries inherent risks, such as theft, loss, or becoming outdated. In each circumstance the list must be regularly reviewed and updated appropriately.
Whichever method you choose, the key is to ensure that your executor or digital asset manager knows where to find this information and how to access it without compromising your security during your lifetime.
Preventing Identity Fraud
Unattended digital accounts can become targets for identity theft. Including clear instructions in your will about which accounts should be closed or memorialised can help prevent misuse.
The Importance of Keeping Information Up to Date
Digital assets evolve rapidly. You might open new accounts, change passwords, or acquire new cryptocurrencies. Regularly reviewing and updating your digital asset inventory ensures your estate plan remains accurate and effective. A good rule of thumb is to review your digital estate every time you update your will or acquire a significant new asset.
Final Thoughts
Digital assets are no longer fringe concerns, they are now central to modern estate planning. As more of our lives are lived and stored online, it’s essential to treat digital assets with the same care and foresight as physical property. Failing to plan for them can lead to confusion, legal hurdles, or even permanent loss.
Even if you think this does not apply to you, consider this: if you own an iPhone, you already have access to Apple’s Legacy Contact feature, which allows you to nominate someone to access your iCloud data after your death. It’s a simple but powerful example of how digital estate planning is relevant to almost everyone.
If you are unsure where to begin, our estate planning team is here to help. We can guide you through the legal landscape in New Zealand and tailor a plan that reflects your unique digital footprint, ensuring peace of mind for you and clarity for those you leave behind.
Special thanks to Partner Andrew Oh and Senior Associate AJ Julian for preparing this article.
Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.
