Death in Virtual Space: Who Inherited Bitcoin and Netflix Accounts?

When we die, we don’t take any material things with us. But what happens to Bitcoin assets, for example? And all kinds of profiles and photos stored in the cloud?

Personal data, photos and memories remain on the web after we die. Because even in that case, death is merciless: if you don’t take care of it yourself, the internet won’t forget. A digital legacy starts with email, subscribes with Netflix and ends with bitcoin assets. According to a survey by opinion researcher YouGov, only 15% of Germans have so far fully or at least partially regulated their digital wealth. A quarter of those surveyed complained about a lack of this information. For 7%, the topic was simply off-putting.

Take care of Facebook and Google accounts

Those who want to make it easier for their loved ones will have to take care of their digital assets on time. For example, on Facebook, users can specify old contacts. The person can share information about funeral honors, or delete the account. What you can’t do is read the deceased’s conversation transcripts, or send private messages on their behalf.

For Google Accounts, you can also designate one or more heirs. This option is hidden under Account Inactivity Manager. There, the user can designate someone to manage the account under certain circumstances, or delete it in the event of “forever inactivity” (i.e. death).

Only 56% of Germans intend to decide what to do with their digital assets in their lifetime. “In this case, preventive measures are important not only for material objects, but also for non-material objects, such as personal data,” says Tim Sperlich, who and his colleague Marcel Kubis are members of the research group at the University of Bremen in Digital Heritage.

Facebook accounts, dating pages, Instagram: successors can be announced or not announced for them.
Facebook accounts, dating pages, Instagram: successors can be announced or not announced for them.

The Law School of the University of Regensburg and the Fraunhofer Institute also participated in the research, which was supported by the German Ministry of Justice and Consumer Protection. The aim, explains Prof. Benedikt Buchner from the Institute of Information, Health and Medical Law at the University of Bremen, is to “discover consumer drawbacks and make recommendations on how to simplify data inheritance”. An information brochure will be published in the coming months.

A Trusted Person Can Solve Inheritance Problems

An easy way to manage digital assets in life is: First, the consumer creates a list of all active accounts and passwords. Then determine what to do with the account after death. Can heirs access photos stored online? Should Instagram, Facebook and Tinder profiles be deleted? Once this is clarified, a power of attorney must be issued to a trusted third party. The person receives a list of accounts and passwords after death, which can quickly and easily verify the deceased’s wishes. A form for such a power of attorney can be found, for example, on the website of the German Consumer Advice Center (Verbraucherzentrale). Just fill out the paperwork and sign it, and you can move on with peace of mind.

Declaring the importance of digital heritage

Those who do not declare to whom they leave their digital inheritance automatically shift responsibility to their legal heirs, who then have access to the deceased’s computer. Hacking is allowed if you don’t know what the password to access your computer is. Additionally, heirs have access to data and images stored in cloud providers such as Dropbox.

Important: inheritance rights also apply to contracts signed online. Even if the heir knew nothing about the Netflix subscription or the deceased’s Tinder profile, he’s still the legal heir and must pay the subscription fee. “That’s why it’s important that heirs have quick access to information about the deceased’s current contract”, says Marcel Kubis.

Blockchain: Bitcoin’s financial system.
Blockchain: Bitcoin’s financial system.

Can I inherit my eBooks?

In most cases, the right to use eBooks is also contractually bound, and in principle hereditary. Problem: Some suppliers exclude inheritance of their products in their terms and conditions. “The question of whether such exclusions are legally enforceable will ultimately be decided on a case-by-case basis,” Kubis said. In extreme cases, a person will have to go to court.

In the absence of a clause in the terms and conditions, inheritance law applies in Germany. “You can also use digital value, like e-books, movies or music,” Kubis said.

Encrypted currency, only access data

The same thing happens when it comes to cryptocurrencies: the heir inherits everything. There will be a problem only if the deceased did not leave his access data, i.e. the private key, before. In this case, the heirs will not be able to access the digital assets. There is no contractual partner in the cryptocurrency world who can restore access to data. “If the private key is lost, the heir will have nothing. That’s how it is,”Kubis warned.

When we die, we don’t take any material things with us. But what happens to Bitcoin assets, for example? And all kinds of profiles and photos stored in the cloud?