When my wife and I wrote our wills a few years ago, there was something we did not include: digital assets.

So much of our lives is carried out online, our digital profile and footprint has become as important as the paperwork that shows we own our house.

Digital assets include everything from devices such as smartphones and laptops, to your Facebook account, online bank login and even all your Word documents. In short, all the things we use every day, and which store our most sensitive and personal information.

Yet when I question my clients, I would be generous if I stated that about 10 per cent had included digital assets as part of their estate plan. Many just assume that they are not something to pass on, or do not have any value.

So, while you might have considered, for example, who will inherit your extensive collection of smelly shoes, most make zero plans on how people will log into bank accounts and social media accounts, to just name a few. My physical photo albums are stored externally (yes, I still have physical photos), but my digital photos (which have over the years become so astronomical that they contain everything from birthday celebrations to out-of-focus close-ups of my nose) are stored on phones and computers. If these cannot be accessed, some valuable memories could be lost.

But as you know, in life, nothing is straightforward. And that means there is a conundrum.

You see we are all told not to write down or share passwords. If you are defrauded, your bank could even refuse to compensate you if it decides that you have been lax with any of your passwords or logins.

Some passwords need constant changing, so this could become an administration nightmare of gigantic proportions.

You might think that none of these matters. And to a certain extent, you may be right. After all, do I really care what happens to my Instagram account after I’m gone?

But estate planning is more about minimising the mess you leave behind for your loved ones to deal with.

But I know of instances where people have died, and on Facebook, loved ones can see messages sent to the person who has died wishing them a happy birthday, sometimes a few years after they have died. I have seen instances of messages sent on LinkedIn offering jobs. And that can never be a good thing.

Without a list to work from, an executor will find it difficult to know just how many accounts you have, let alone whether they contain assets. The fact that many of our accounts and bills are now “paperless” might make life easier, but it can be a problem after you die.

Another issue is fraud. Social media accounts can be hacked and hijacked, and this can be particularly distressing for relatives if the victim has recently died. Most social media sites also will not remove the profile of someone who has died unless you can prove that you have permission to do this.

We recommend that you appoint a legacy contact on social media accounts. This gives a named person the right to remove your account when you die if they choose to. Finally, storing all the details in a password manager (we use LastPass) and it is the most secure way to pass login details and provide a list of digital assets.

Digital assets forms part of your estate planning. It is step 9 of our 9 steps to working less, earning more and creating wealth. If you would like to know more about our 9-step signature system, please contact the WOW! Advisors team on 07 3161 9548 or email info@wowadvisors.com.au.