Digital Assets in Your Estate: What Every Australian Family Should Know in 2025

When John’s father passed away last year, the family thought they had everything sorted. The will was clear, the bank accounts identified, the house ready for sale. But three months into probate, John’s tech-savvy daughter asked a question that stopped everyone: “What about Pop’s Bitcoin?”

It turned out John’s father had quietly accumulated $45,000 in cryptocurrency over five years. The problem? No one knew how to access it, and it wasn’t mentioned anywhere in his estate planning documents.

John’s family isn’t alone. Across Australia, digital assets are quietly becoming part of family wealth, often without anyone realising the implications for inheritance.

What Are Digital Assets?

Think of digital assets as the online equivalent of your traditional investments and possessions. Just as you might own shares through a broker or keep cash in a bank account, digital assets exist in online platforms and digital wallets.

The most common digital assets Australian families encounter include:

Cryptocurrency: Digital currencies like Bitcoin, Ethereum, and others. These work similarly to foreign currency investments but exist entirely online.

Online investment accounts: Shares held through apps like CommSec Pocket, Stake, or Superhero, where the actual certificates exist digitally.

Digital bank accounts: Online-only banks and payment platforms like ING Direct, Up Bank, or PayPal balances.

Business digital assets: Domain names, online businesses, or social media accounts that generate income.

Digital collections: Items like photos, music libraries, or even newer digital collectibles that hold monetary value.

Stored value: Gift cards, airline points, or loyalty program credits that represent real money.

The key difference? Traditional assets usually have physical documentation or clear institutional processes for inheritance. Digital assets often don’t.

Why This Matters for Your Family

Sarah discovered this the hard way when her husband died suddenly at 58. He’d been the family’s “tech person,” managing their online banking, cryptocurrency investments, and even their Netflix account.

“I knew he had some Bitcoin,” Sarah says. “But I had no idea how much, where it was, or how to get to it. The banks were straightforward, I had death certificates and joint accounts. But the digital stuff? I felt completely lost.”

Sarah’s experience highlights three critical issues facing Australian families:

Access problems: Unlike a bank account where you can prove your identity and relationship to the deceased, many digital platforms have complex access requirements. Some cryptocurrency wallets can’t be recovered without specific passwords or “seed phrases.”

Hidden assets: Traditional assets leave paper trails; bank statements, share certificates, property deeds. Digital assets can be invisible to family members, stored on phones, computers, or online platforms that others don’t know about.

Time sensitivity: While probate gives families time to locate and claim traditional assets, some digital assets can become inaccessible quickly. Cryptocurrency exchanges may freeze accounts, and online services might delete inactive accounts after certain periods.

Tax implications: Digital assets are subject to capital gains tax and need to be properly valued at the time of death. The Australian Taxation Office treats cryptocurrency like any other asset for inheritance purposes.

Common Scenarios Australian Families Face

The Invisible Portfolio

David, a Melbourne retiree, thought he was being helpful by moving his share investments to online platforms to save on brokerage fees. His adult children knew he had shares but had no idea he’d moved everything digital. When David had a stroke, his family couldn’t access account information to understand his financial position for aged care planning.

The Tech-Savvy Parent

Margaret’s son convinced her to buy Bitcoin in 2019 “as a small investment.” She purchased $5,000 worth through an online exchange, printed out some documents, and filed them away. Three years later, that investment was worth $18,000, but Margaret couldn’t remember her login details. When she died, her children found the papers but couldn’t access the account.

The Online Business Owner

James ran a successful eBay business from his home office. His wife knew about the business but didn’t understand the multiple online accounts, payment systems, and digital inventory that generated their side income. When James died, the business (worth $30,000 annually) simply stopped because no one else could access the systems.

The Emotional Reality

For many Australian families, digital assets represent more than money. They’re often connected to relationships, memories, and personal identity in ways that traditional assets aren’t.

Lisa’s father was an early adopter of digital photography, storing 20 years of family photos on his computer and cloud accounts. “When he died, we discovered he had thousands of photos we’d never seen-holidays, family gatherings, everyday moments. But they were locked behind passwords we didn’t know. Losing access to those memories felt like losing him all over again.”

First Steps to Protect Your Digital Assets

The good news? Protecting digital assets doesn’t require becoming a technology expert. It starts with the same organised approach you’d use for any other part of estate planning.

Create a Digital Asset Inventory

Start by listing what you have. For each account or asset, note:

• What it is (type of asset)
• Where it’s held (platform or service)
• Approximate value
• How to access it (username, but not passwords yet)

You don’t need to include passwords in this initial list, just create awareness of what exists.

Consider Access vs. Security

The challenge with digital assets is balancing security (protecting assets while you’re alive) with access (ensuring others can reach them when needed).

Some families use a “two-key” approach: they keep login information in one secure location and passwords in another. Others use password managers that can be accessed by trusted family members. There’s no single right answer, but there needs to be a plan.

Update Your Estate Planning Documents

Traditional wills often use language like “all my assets” or “personal property,” which may or may not clearly include digital assets. Consider whether your current estate planning documents specifically address digital assets or whether they need updating.

When to Seek Professional Help

Not every family needs extensive professional help with digital assets, but some situations warrant expert guidance:

• If digital assets represent a significant portion of your wealth
• If you own cryptocurrency worth more than $10,000
• If you operate online businesses or hold complex digital investments
• If you’re uncomfortable managing access and security yourself

Estate planning lawyers increasingly understand digital asset issues, and some financial advisors specialise in cryptocurrency and digital wealth management.

Moving Forward

Digital assets don’t have to be intimidating. Like any part of estate planning, they’re simply about being organised and thinking ahead.

The families who navigate this well aren’t necessarily the most tech-savvy, they’re the ones who approach digital assets with the same care and planning they’d use for any other valuable possession.

Start where you are. Whether that means creating your first digital asset list, updating your will to include digital property, or having a conversation with your family about online accounts, the important thing is beginning.

Your future self and your family will thank you for taking these steps now, while you have time to do them properly. Make sure you have a look at our guides and product comparisons on digital vaults and software to help with your planning and security.

Disclaimer: This information is general in nature and doesn’t constitute financial or legal advice. Every family’s situation is different, and you should consider seeking professional guidance for your specific circumstances.