The Executor’s Digital Estate Checklist

The executor found the house keys in the kitchen drawer.

The bank statements were filed neatly. The insurance documents were labelled, the will was stored safely and the vehicle registration was easy to locate.

The digital estate was another matter.

The deceased had used several email addresses, stored family photographs online, earned income through a digital business and mentioned owning cryptocurrency. Nobody knew which accounts still existed, where the digital wallet was located or whether the executor was legally permitted to use the passwords written in a notebook.

One relative wanted every social account deleted immediately. Another wanted the photographs preserved. A beneficiary insisted that the cryptocurrency should be sold before its value fell.

The executor had not yet confirmed whether any cryptocurrency actually existed.

Digital assets can be among the easiest estate assets to overlook and the hardest to recover. Unlike a house or vehicle, they may leave no physical trace. Their value can disappear through lost credentials, fraud, automatic account closure or a failure to identify them before devices and subscriptions are cancelled.

A New Zealand executor must approach digital assets in the same disciplined way as other estate property: identify ownership, preserve evidence, establish legal authority, assess value, deal with tax and follow the will. The technical method may be different, but the executor’s fundamental responsibilities remain the same.

## What Counts as a Digital Asset?

“Digital asset” is a broad practical term rather than a single category with one legal rule.

An estate may contain:

– Cryptocurrency
– Digital tokens
– Online investment accounts
– Electronic payment balances
– Email accounts
– Cloud storage
– Domain names
– Websites
– Online businesses
– Social-media accounts
– Monetised video or publishing accounts
– Digital photographs
– Electronic manuscripts
– Software code
– Digital artwork
– Online gaming assets
– Loyalty rewards
– Subscription accounts
– Customer databases
– Digital invoices and business records

Some of these have clear financial value. Others are valuable because they contain personal information, creative work, family history or evidence needed to administer the rest of the estate.

An email account may have little market value while providing the only clues to an investment account worth hundreds of thousands of dollars.

## Separate the Asset From the Account

A common mistake is treating the online account and the property accessible through it as the same thing.

They may be legally different.

For example:

– An email account provides access to correspondence, but the service itself may not be transferable.
– A cloud account may contain photographs owned by the deceased, while access remains subject to contractual terms.
– A cryptocurrency exchange account may hold assets belonging to the estate.
– A social-media profile may contain licensed content that cannot be sold.
– An online business account may belong to a company rather than the deceased personally.

The executor should ask two questions:

1. What property or information exists?
2. Who owns it, and under what legal or contractual rules can it be accessed?

Do not assume that control of a password proves ownership.

## Begin With Legal Authority

The executor named in a will does not always receive unrestricted access to every online account immediately after death.

Some providers may accept:

– A death certificate
– A copy of the will
– Executor identification
– A completed deceased-user request
– Probate
– Letters of administration
– A court order
– Additional proof of entitlement

Probate formally confirms the authority of the executor appointed by the will. Current New Zealand court guidance states that the named executor applies for probate under the Administration Act, Wills Act and High Court Rules. citeturn604009search6

Where a significant digital asset is held solely in the deceased’s name, the provider may insist on the court grant before releasing, transferring or disclosing it.

The executor should not promise beneficiaries immediate access simply because a password has been found.

## Do Not Use the Deceased’s Accounts as Though They Were Still Alive

Finding a password does not automatically make it lawful or appropriate to sign in and impersonate the deceased.

Risky conduct may include:

– Sending messages from the deceased’s email address
– Accepting new contractual terms in the deceased’s name
– Pretending to be the deceased during identity checks
– Continuing to trade through a personal investment account
– Resetting security questions using misleading information
– Bypassing a provider’s deceased-user process
– Using the deceased’s payment cards
– Moving money without recording the transaction

The executor may need controlled access to preserve information or secure property. That access should be based on genuine estate authority, not the pretence that the account holder is still living.

Where the position is uncertain, contact the provider through its deceased-estate or legal process before logging in.

## Secure Devices Before Searching Them

Phones, laptops, tablets, storage drives and security keys may provide access to estate property.

The executor should secure them promptly.

Practical steps include:

– Collecting devices from the deceased’s home
– Photographing their condition
– Recording serial numbers
– Preventing relatives from experimenting with passwords
– Keeping charging cables and security devices together
– Disconnecting unnecessary remote access
– Preserving backup drives
– Recording who has custody
– Avoiding factory resets or software updates

Do not allow several family members to search the same device independently.

Repeated failed login attempts can lock accounts, erase data or trigger fraud controls. Some devices can be configured to delete information after too many incorrect attempts.

Where substantial value may be involved, specialist digital-forensics or cryptocurrency recovery advice may be safer than trial and error.

## Create a Digital Asset Inventory

The executor should prepare an inventory before closing or transferring accounts.

Useful columns include:

| Asset or Account | Possible Value | Evidence Found | Access Status | Next Action |
|—|—:|—|—|—|
| Email account | Information value | Address on invoices | No access | Contact provider |
| Cryptocurrency wallet | Unknown | Wallet application on phone | Device secured | Identify wallet type |
| Domain name | $4,000 estimate | Renewal invoice | Registrar identified | Prevent expiry |
| Cloud photographs | Sentimental | Subscription receipt | Password available | Preserve copy lawfully |
| Online store | Income-producing | Customer emails | Account active | Confirm ownership structure |

Record uncertain assets as possibilities rather than facts.

Writing “cryptocurrency believed to exist” is more accurate than listing a guessed balance that has not been verified.

## Search for Evidence Without Destroying It

Useful evidence may appear in:

– Email subject lines
– Bank transactions
– Tax returns
– Accounting records
– Browser bookmarks
– Password-manager records
– Device applications
– Subscription invoices
– Domain-renewal notices
– Authentication devices
– Printed recovery phrases
– Hardware wallets
– Exchange statements
– Business correspondence

Search systematically.

A bank payment to a cryptocurrency platform may indicate an account, but it does not prove that assets remain there. The deceased may have sold, transferred or lost them.

Similarly, an application icon on a phone does not establish ownership or value.

Preserve the original evidence and record how each conclusion was reached.

## Cryptocurrency Is Property, but Access Is Everything

Inland Revenue treats cryptoassets as a form of property for tax purposes. Its current guidance describes them as cryptographically secured digital representations of value that can be stored, transferred or traded electronically. citeturn604009search5turn604009search22

From an estate perspective, cryptocurrency may be held through:

– A custodial exchange
– A software wallet
– A hardware wallet
– A paper wallet
– A decentralised finance arrangement
– A staking service
– A business account
– A shared or multi-signature wallet

The recovery process depends heavily on how the asset is held.

### Custodial account

A third-party platform controls the private keys and may transfer the assets after receiving estate documents.

### Self-custody wallet

The deceased controlled the private keys. The provider may have no ability to recover access.

### Multi-signature arrangement

Several keys or approvals may be required. Another key holder may need to cooperate.

### Hardware wallet

The physical device alone may be insufficient without a PIN, password or recovery phrase.

The executor should identify the structure before moving anything.

## Never Share a Recovery Phrase Casually

A cryptocurrency recovery phrase, seed phrase or private key can provide complete control over the associated assets.

Anyone obtaining it may be able to transfer the cryptocurrency irreversibly.

The executor should not:

– Email it
– Photograph it on a connected phone
– Enter it into an unfamiliar website
– Give it to a beneficiary
– Store it in an ordinary shared document
– Read it aloud during a group meeting
– Respond to unsolicited recovery offers
– Provide it to someone claiming to be technical support

Record where it is stored without reproducing it unnecessarily.

For a valuable holding, consider secure dual control, where no one person can access both the asset information and transfer authority without another authorised person being involved.

## Beware of Digital Asset Recovery Scams

Executors can become targets because they are worried, inexperienced and under time pressure.

Warning signs include:

– Unsolicited messages offering to recover cryptocurrency
– Demands for the recovery phrase
– Requests for an advance “release fee”
– Claims that tax must be paid into a digital wallet
– Promises to restore lost assets with certainty
– Instructions to install remote-access software
– Pressure to act immediately
– Requests to transfer a small test amount to an unknown address

Legitimate technical assistance should have:

– Verifiable identity
– Written terms
– Clear fees
– Defined scope
– Security procedures
– Professional references where appropriate
– No demand for uncontrolled access

The executor should involve co-executors or an independent adviser before giving anyone access to substantial digital assets.

## Establish the Date-of-Death Value

Cryptocurrency values can change dramatically.

The executor should record:

– Asset type
– Quantity
– Wallet or account
– Date and time of valuation
– Exchange rate used
– New Zealand dollar value
– Source of the valuation
– Any restrictions on transfer
– Transaction fees

The date-of-death value may be important for:

– Estate accounts
– Beneficiary allocation
– Tax calculations
– Insurance or loss claims
– Assessing executor decisions
– Resolving disputes

Do not use the current value and describe it as the value at death.

Where trading occurs continuously, use a consistent, supportable valuation method and preserve the source information.

## Decide Whether to Hold, Transfer or Sell

Beneficiaries may have strong opinions about cryptocurrency.

One may want it sold immediately. Another may want an in-specie transfer. A third may argue that the executor should wait for the market to rise.

The executor should not speculate with estate property merely to pursue a hoped-for return.

Relevant considerations include:

– The will
– Beneficiary entitlements
– Market volatility
– Security risk
– Tax consequences
– Transaction costs
– Whether the estate needs cash
– Whether beneficiaries can receive the asset securely
– The executor’s investment powers
– Any continuing staking or contractual arrangements
– The likelihood of legal claims

A documented decision is essential.

For example:

> The estate sold the cryptocurrency after probate because its value was highly volatile, the estate required cash to meet liabilities and the will did not require an in-specie distribution.

That is more defensible than:

> I thought the price was about to fall.

## Cryptocurrency Tax Cannot Be Ignored

New Zealand tax treatment depends on the asset and transaction history.

Inland Revenue states that selling, trading, exchanging or lending cryptoassets can produce taxable income or loss, and current guidance requires records capable of supporting the New Zealand dollar value of transactions. citeturn604009search29turn604009search36

The executor may need to investigate:

– Why the deceased acquired the asset
– Purchase dates and costs
– Sales before death
– Trades between cryptoassets
– Staking income
– Mining activity
– Lending or decentralised finance
– Business use
– Foreign platform records
– Estate transactions after death

Do not assume that receiving cryptocurrency as an inheritance automatically creates an inheritance tax. New Zealand does not impose a general tax merely because property is inherited.

However, transactions by the deceased or estate may create income-tax obligations.

Poor records can make the calculation difficult. Preserve transaction histories before closing accounts.

## Online Income May Continue After Death

Digital assets may keep earning money.

Examples include:

– Website advertising
– Subscription revenue
– Digital book royalties
– Licensing income
– Online-course payments
– Software subscriptions
– Affiliate commissions
– Domain leasing
– Staking rewards
– Marketplace sales

The executor should determine:

– Who legally owns the business or account
– Whether the income belongs to the estate or a company
– Whether contracts survive death
– Whether customers must be notified
– Whether services can continue safely
– Whether tax invoices or returns are required
– Whether immediate shutdown would destroy value

Company revenue belongs to the company, not directly to the estate merely because the deceased owned shares.

The estate may inherit the shares while the company continues operating under its own governance.

## Protect Domain Names and Websites

A valuable website can disappear because nobody pays a small renewal invoice.

The executor should identify:

– Domain registrar
– Renewal date
– Hosting provider
– Website administrator
– Business owner
– Email services linked to the domain
– Payment method
– Intellectual-property rights
– Customer data
– Advertising or subscription contracts

Keep essential renewals active while ownership and sale decisions are assessed.

Do not close the deceased’s payment card without checking whether it funds vital domain, hosting or security services.

A domain may be sold, transferred to a beneficiary, retained by a company or allowed to expire, depending on ownership and the will.

## Email Is Often the Master Key

Email accounts can provide access to:

– Password resets
– Investment statements
– Business contracts
– Tax records
– Cloud storage
– Online banking alerts
– Social accounts
– Domain registration
– Cryptocurrency platforms

That makes email preservation a priority.

It also creates privacy risk.

An executor may encounter personal correspondence involving:

– Family members
– Business partners
– Medical matters
– Legal advice
– Confidential third-party information
– Intimate relationships

The executor should search only as far as reasonably needed for administration. Being authorised to administer the estate does not justify circulating private messages for curiosity or family entertainment.

The Privacy Commissioner has explained that privacy law can still permit information concerning a deceased person to be withheld where disclosure would unreasonably expose the affairs of the deceased or another person. citeturn604009search3turn604009search41

Use targeted searches rather than opening every message indiscriminately.

## Online Platforms Have Their Own Rules

A social or cloud platform may allow:

– Memorialisation
– Account closure
– Download of selected content
– Transfer through a legacy-contact feature
– Release of information to an executor
– No transfer at all

The provider’s terms may be governed by overseas law.

The executor should submit formal requests with the required documents rather than relying only on passwords.

Keep copies of:

– The request
– Documents supplied
– Provider responses
– Content downloaded
– Closure confirmation
– Reasons access was refused

A platform may provide content without giving the executor the right to operate the account as the deceased.

## Social-Media Accounts Need a Deliberate Decision

Relatives often have conflicting views about social profiles.

Options may include:

– Memorialising the account
– Deleting it
– Downloading permitted content
– Preserving photographs
– Posting a limited death notice
– Leaving it unchanged temporarily

Before acting, check:

– The deceased’s written wishes
– Platform rules
– Intellectual-property ownership
– Privacy of other people
– Whether the account generates revenue
– Whether it contains evidence needed for administration
– Whether deletion is reversible

Do not post detailed estate information publicly from the deceased’s account.

Avoid announcing asset values, beneficiary disputes or the location of valuable property.

## Digital Photographs and Family Archives

Cloud photographs may be emotionally important but legally complicated.

The executor should distinguish:

– Copyright ownership
– Account access
– Privacy
– The physical or digital storage medium
– Beneficiary entitlement under the will

The deceased may own copyright in photographs they created. Photographs taken by someone else may remain that photographer’s intellectual property even if copies are stored in the deceased’s account.

Where practical, the executor may preserve an authorised archive before closing the account.

Sensitive material should be reviewed carefully rather than copied automatically to every relative.

## Subscription Accounts May Conceal Costs or Value

The executor should review recurring digital subscriptions.

These may include:

– Storage
– Software
– Entertainment
– Security
– Website hosting
– Professional tools
– Online publications
– Gaming memberships

Some should be cancelled promptly. Others must remain active to protect valuable data or a business.

Ask:

– Is the service storing estate information?
– Will cancellation erase data?
– Is the account transferable?
– Is there a refund?
– Does the subscription support an income-producing asset?
– What is the next renewal date?

Cancel only after preserving what the estate needs.

## Loyalty Points and Digital Rewards

Airline points, reward balances and gaming assets may have practical value, but transferability is usually governed by the programme’s terms.

The provider may allow:

– Transfer to a beneficiary
– Redemption by the estate
– Limited family transfer
– Closure with no payment
– Expiry at death

Do not list points at full retail value without checking whether they can legally be transferred or redeemed.

Record both nominal value and actual recoverable value.

## Digital Debts and Liabilities

Digital accounts can create obligations as well as assets.

Examples include:

– Subscription arrears
– Cloud-storage fees
– Online advertising charges
– Customer refunds
– Marketplace disputes
– Chargebacks
– Digital-business tax
– Uncompleted product orders
– Domain renewal fees
– Cryptocurrency loans
– Margin positions
– Smart-contract commitments

A positive online balance may be subject to withdrawal restrictions or offset against liabilities.

The executor should not distribute the visible balance before investigating the complete account.

## Keep an Access and Action Log

Digital administration can be difficult to reconstruct later.

Maintain a log containing:

– Date
– Person accessing the device or account
– Authority relied upon
– Method of access
– Information viewed
– Files downloaded
– Password changes
– Security changes
– Transfers
– Account closure
– Destination of transferred assets
– Supporting transaction identifier

For cryptocurrency, record the full transaction reference and receiving wallet details without publishing private keys.

The log helps answer beneficiary questions and investigate any later loss.

## Use Separate Estate-Controlled Accounts

Once digital assets are collected, they should not be mixed with the executor’s personal property.

For cryptocurrency, an appropriate estate-controlled arrangement may involve:

– A newly created secure wallet
– A custodial estate account where available
– Multi-signature control
– Documented dual approval
– Offline recovery information
– Separate record of public addresses

Do not transfer the deceased’s cryptoassets into the executor’s ordinary personal wallet merely for convenience.

Even if the executor intends to transfer them later, mixing creates ownership, accounting and security problems.

## What if Access Is Impossible?

Some digital assets may be unrecoverable.

Examples include:

– Lost private keys
– Forgotten encryption passwords
– Destroyed devices
– Deleted accounts
– Expired domains
– Platforms that no longer exist
– Unavailable two-factor authentication
– Unknown wallet addresses

The executor should document:

– Evidence that the asset existed
– Attempts to identify access information
– Professional advice obtained
– Estimated value
– Recovery costs
– Reasons further work was disproportionate
– Final accounting treatment

Do not spend most of a modest estate pursuing a speculative digital asset with no reliable evidence of value.

The executor’s duty is to act reasonably, not to achieve impossible recovery.

## When Specialist Help Is Justified

Professional assistance may be appropriate where the estate includes:

– High-value cryptocurrency
– Multiple wallets
– A digital business
– Encrypted devices
– Missing access credentials
– Cybersecurity concerns
– Foreign platforms
– Suspected hacking
– Complex tax history
– Intellectual property
– Customer databases
– Litigation

The specialist should receive only the access needed for the defined task.

Use written terms covering:

– Confidentiality
– Security
– Fees
– Custody
– Data retention
– Reporting
– Conflicts
– Liability
– Return or destruction of information

Beneficiaries should not be given administrator credentials merely because they have better technical knowledge than the executor.

## A Practical Digital Asset Process

### Secure

Collect devices, recovery materials and account evidence.

### Identify

Prepare an inventory of accounts, assets, liabilities and possible values.

### Confirm ownership

Separate personal assets from company, trust, joint and licensed property.

### Establish authority

Obtain probate or other documents required by each provider.

### Preserve

Prevent account deletion, domain expiry, data loss and unauthorised access.

### Value

Record date-of-death and transaction values using supportable evidence.

### Investigate tax

Preserve complete transaction and income records.

### Decide

Determine whether to hold, transfer, sell, memorialise, download or close.

### Document

Maintain an access log, transaction records and provider correspondence.

### Distribute

Transfer assets securely according to the will and final estate accounts.

The greatest danger in a digital estate is often not that someone steals an asset.

It is that nobody realises the asset exists until the account has closed, the domain has expired or the only device containing the private key has been erased.

## Frequently Asked Questions

### 1. Can an executor access the deceased’s online accounts?

Possibly, but access should be based on legal authority and the provider’s deceased-user procedure. A password alone does not necessarily authorise the executor to impersonate the deceased or bypass account rules.

### 2. Is cryptocurrency part of a New Zealand estate?

Cryptocurrency owned by the deceased can form part of the estate. Inland Revenue treats cryptoassets as property for tax purposes, but ownership, custody and access must still be established.

### 3. Can the executor use a recovery phrase to transfer cryptocurrency?

The executor may be able to use it where they have proper estate authority, but the phrase must be protected carefully. A transfer should be documented and made to a secure estate-controlled arrangement, not casually to a personal wallet.

### 4. Should an executor sell cryptocurrency immediately?

Not automatically. The executor should consider the will, volatility, security, tax, estate cash needs, beneficiary interests and their legal powers. The decision and reasons should be recorded.

### 5. Are inherited cryptoassets tax-free?

New Zealand does not impose a general inheritance tax merely because an asset is inherited. However, sales, trades, staking, business activity or earlier transactions may create income-tax obligations.

### 6. Can an executor delete social-media accounts?

Potentially, subject to the will, provider rules, preservation needs and privacy considerations. Important content should not be destroyed before the executor checks whether it is needed for the estate.

### 7. What if the executor cannot find the crypto wallet password?

The executor should preserve every device and recovery record, investigate the wallet type and consider specialist assistance. Some self-custody assets may be permanently inaccessible without the private key or recovery phrase.

### 8. How should digital assets appear in estate accounts?

Record the asset, ownership, date-of-death value, collection or transfer method, sale proceeds, fees, tax consequences and final recipient. Unrecoverable assets should also be documented with the steps taken to locate or access them.