Singapore’s laws are still in the early stages of determining how digital assets can be managed and distributed through a will and when someone passes away without a will, according to Lianhe Zaobao, a Singapore-based news agency, article discussing estate planning for digital assets. In recent years, more people are considering including digital assets, such as cryptocurrencies and NFTs, in their wills, the agency said. But if the location and access details are not properly recorded, the asset may never be found or retrieved.
Here are some key points from the article on how to do estate planning for digital assets and issues to consider:
Cryptocurrencies
You can state the account of your cryptocurrency and leave instructions in your will on how to access and manage the account or you can also transfer it to a hardware wallet, which can be passed on to a beneficiary as personal property.
Information that can be included for the executor in the will can include the type, the amount, and the keys of cryptocurrencies with clear instructions on how to manage them, the agency says, citing Fong Wei Li, a lawyer at Forward Legal LLC. Without the login details, your beneficiary will not be able to obtain the cryptocurrencies even if he or she is entitled to them, Fong said.
Cryptocurrencies may get sold before one passes away, therefore some people don't spend a lot of time planning on how to bequeath them, the agency cites Low Seow Ling, a lawyer from Eden Law Corporation, as saying.
Things that have tax or ownership implications, such as residential properties or shares in unlisted companies, are more likely to be seen in wills as specific gifts, the agency cites Regina Tan, CEO at Immortalize, as saying. With digital assets, it’s more likely to be lumped and distributed as part of the rest of the estate.
NFT & Social Media
Whether assets can be distributed through a valid will or the intestacy law when there's no will, will depend on whether it can be classified as "property" in law, the agency cites Chua Tju Liang, a lawyer from Drew & Napier LLC, as saying
Digital assets, such as NFTs (non-fungible tokens) and cryptocurrencies, are yet to be classified as "properties" based on Singapore's law, according to Chua.
Singapore has yet to determine whether social media accounts are considered assets as assets are usually owned and have monetary value, according to Fong. Since accounts, such as Facebook, don't have immediate determinable monetary value, whether they can be considered as assets is still in question at this point in time, Fong said.
Accounts that have many followers may have commercial value, according to Low. If the account is owned by a company, the company or the company shares can be directly bequeathed through a will, Low said.
However, one should note that different social media platforms may have different policies on how accounts are dealt with after someone’s death.
Link to Lianhe Zaobao's article:
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