What Is the Legal Position on Digital Inheritance?

    Elder & Estate Planning law
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As digital lives become an integral part of our existence, digital inheritance has become an emerging issue. The transfer of digital assets like social media accounts, emails, online banking, and cryptocurrencies after an individual’s death raises important legal and ethical questions. In India, the concept of digital inheritance is not explicitly addressed in law, leaving several gaps that require attention.

Legal Position on Digital Inheritance in India:

Lack of Comprehensive Legislation:

India currently lacks specific laws regarding digital inheritance. Unlike traditional assets, there is no clear legal framework governing the transfer of digital assets, such as social media profiles, online accounts, or digital currencies. Digital property is often governed by the terms and conditions set by the service providers, which may or may not allow the transfer of accounts or content after death.

Transfer of Digital Assets:

Social Media Accounts:

Platforms like Facebook, Instagram, and Twitter allow users to designate a legacy contact in the event of their death, enabling the transfer of content or the management of the account. However, the account’s ownership technically remains with the platform, and it may be deleted or frozen according to the provider’s policy.

Cryptocurrencies:

Cryptocurrencies like Bitcoin or Ethereum are treated as property in many jurisdictions. The transfer of these assets after death requires knowledge of the deceased’s private keys, which is often a challenge. If the keys are not shared or stored securely, the assets could be permanently inaccessible.

Email and Cloud Storage:

Email accounts, online storage, and digital subscriptions may have clauses in their terms of service that outline what happens to accounts after death. However, these services generally do not allow for easy transfer of access to family members or heirs.

Succession Laws and Digital Assets:

Indian succession laws do not specifically account for digital assets. Under the Indian Succession Act, 1925, movable property (which could include digital assets) is inherited based on a valid will or by the laws of intestate succession. However, it is unclear how this applies to intangible digital assets, especially if they are not accessible without specific login credentials or digital keys.

Estate Planning and Digital Wills:

Estate planning is evolving to include digital assets. Some legal experts recommend that individuals create a digital will that specifically addresses the transfer of online accounts, digital currencies, and intellectual property. These wills can provide clear instructions on how to handle such assets, but their legal validity can be questioned due to the lack of a specific framework in Indian law.

Challenges in Digital Inheritance:

Privacy Concerns:

Digital assets, especially social media and email accounts, contain sensitive personal information. The privacy rights of the deceased must be respected, which may conflict with the desires of heirs to access and manage the deceased's accounts.

Access Issues:

Access to digital assets often requires passwords or security keys, which are not always known to the heirs. Without this access, digital inheritance becomes impractical.

Cross-Border Legal Issues:

Many digital services are provided by foreign companies, and the laws governing digital assets may vary depending on the country of the service provider. This complicates matters when the deceased’s assets are tied to services that are not governed by Indian law.

Legal Actions and Protections:

Digital Will:

While not yet widely adopted, creating a digital will that explicitly addresses the transfer of online accounts and digital assets is an essential step in modern estate planning.

Court Intervention:

In the absence of a digital will, family members may need to seek court intervention to gain access to a deceased person’s digital accounts or assets. The court may allow access based on legal arguments or the deceased’s intentions (if known).

Service Providers’ Policies:

The terms and conditions of digital service providers play a major role in determining what happens to digital accounts after death. It's crucial for individuals to be aware of these policies and ensure they comply with service requirements for inheritance.

Example:

In a case where an individual passes away, leaving behind significant cryptocurrency holdings in a Bitcoin wallet, the heirs would need to know the private key to access the funds. If the deceased did not share the key or create a digital will outlining the transfer process, the heirs may be unable to recover the assets. Similarly, if a person’s social media account had a large following or intellectual property, but no legacy contact was designated, the account might be frozen or deleted by the platform according to its terms of service.

Answer By Law4u Team

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