Authors: Neema Iyer & Rachel Magege
Ever wonder what would happen to one’s bitcoin or mobile money balance when they meet their (un)timely demise? What about their pictures on the cloud or their Instagram handle? Or their non-fungible token (NFT) collection?
As much of our lives moved to online spaces, so did many of our assets such as the money in our online banking account, our correspondences, our photographs and memories, our investments and so on. What remains unclear to many is how these assets can be appropriately managed and then inherited within the legal frameworks of individual countries. This is especially important to think about because inheritance practices vary across cultures and are a source of contention across the world.
Let’s start off with what ownership or possession means, in a legal sense. And, this is particularly important when it comes to digital assets as we’ll discuss in more detail, because the current popular structure of subscription-based services directly impacts whether you own or possess something.
Ownership means having the legal right to use, control or dispose of an asset and typically involves having some form of legal documentation to prove your right to that asset. You could also transfer ownership of this asset to someone else through a sale, gift or other legal means.
Possession, on the other hand, is more fluid. It refers to having control or custody over a property or asset, but not necessarily owning it. For example, you may possess an apartment since you live there and pay rent, but its ownership lies with your landlord.
However, with digital assets, things get murky. You can own digital assets, however, how you distribute them is determined by copyright laws or licenses or other legal consideration. Then again, do your online accounts, content and data even “belong” to you? Your online account may grant you access to a platform’s services but you may not own that content, even though you created it and it bears your likeness.
How have inheritance practices typically worked?
Often, inheritance is guided by a will left by the departed. Where there is no will, family members will usually appoint an individual from among themselves to supervise and distribute the remaining assets. In both circumstances, the court system must be involved as it has to give the legal authorization for the executor (where there is a will) or the administrator (where there is no will) to distribute the assets.
It is not common practice in many African households to write a will. Therefore, distribution of assets tends to be uneven and unfair to the direct dependants, mostly the wife and children, as the deceased’s relatives may often try to obtain assets for themselves.
Most inheritance practices distribute physical assets such as houses, land, vehicles and digital financial entities like bank accounts or shares. Recently, mobile money accounts have been added to that list, where we are seeing a greater shift and focus from electronic bank transfers to mobile money transactions in many parts of the African region. For instance, Tanzania’s mobile money transactions rose to 30% in the last quarter of 2023 with an estimated 52 million users by December 2023. We may soon see more and more heirs inheriting mobile money accounts from their predecessors.
What are some common digital assets today?
- Social Media Accounts
Accounts with influence and followers are commonly bought and sold. For example, Warner Music reportedly bought IMGN Media for $85 million which includes Instagram meme account @Daquan. - Digital Financial Accounts
This would be your online banking, Paypal or mobile money accounts. - Cryptocurrency
New crypto keeps sprouting up, but these might be your Bitcoin or Ethereum. At the time of writing this article, 1 Bitcoin was US$62,592. - Cloud Storage
Any of the files within your Google Drive, Dropbox or other online servers. - Websites and Domains
Similar to social media accounts, there is a large marketplace for domains with many people annoyingly squatting on prime internet real estate. In 2022, NFTs.com sold for US$15 million. - Software Licenses
This could be any software services you’ve purchased like Microsoft or Adobe, productivity tools, design tools etc. - Loyalty and Rewards Points
Think airline miles, hotel rewards, supermarket or fuel loyalty program points. These can be traded and when used appropriately, can reap major benefits. - Intellectual Property
Any content or ideas that you create which would include copyrighted works, patents, trademarks, digital art, eBooks, etc. For example, if you have a best-selling book on Amazon that gives you recurring income or you’ve designed the art for a widely purchased print or wall paper. - Online Shopping Accounts
You may have an automated online store that sells different products whether physical or digital such as Amazon or Gumroad. Digital products sellers on Etsy claim to make $10,000/month.
What’s Mine is Yours?
We have been pondering over the meaning, implications and legal aspects of digital inheritance. Now, we’re taking the next step to create tangible meaning and processes around how we inherit the intangible.
Mine is Yours is an exciting new project launching at Pollicy this quarter that seeks to redefine the theoretical and legal landscape of digital inheritance by exploring the nuances around managing digital assets both before and after life’s eventuality. The project seeks to identify existing provisions (or the lack thereof) in digital asset inheritance within various African countries’ succession laws and by working closely with data governance experts and policymakers, aims to develop evidence-based strategies to navigate the complexities of digital succession.
Besides the monetary and emotional benefits, what else can this discourse achieve?
Increased access and financial inclusion: Digital assets in the financial sector like cryptocurrencies and online businesses are becoming more common. Inheritance laws in many African countries are continuously amending their frameworks to align with current technologies and therefore, new tech solutions could streamline the process, allowing families to pass on these assets more easily as most individuals look to financial digital assets to benefit them economically. This could be especially helpful for those without traditional land or property.
Growth in the tech sector: Developing these new inheritance solutions will require innovation in areas like digital identity, secure storage, and blockchain technology. This could spur growth in Africa’s tech sector, creating jobs and attracting investment.
Legal and social considerations for non-monetary assets: There will be new legal questions to answer. Who controls access to the deceased’s digital assets during the inheritance process? What happens if the digital asset is something like a social media profile or an eCommerce store? These issues will need to be addressed to ensure fair and secure inheritance and that is what the project will cover.
How can you get involved?
In this exciting new project, you can join the conversation by learning about the inheritance practices in your countries — how many individuals have wills, are there ever any unclaimed digital assets, are the court systems, tech platforms and financial sectors well equipped to pass down digital assets to an heir? etc.
Secondly, a large amount of personal data may be involved in digital inheritance and so it will be important to spread education on how best to protect and manage one’s data before and after departing. Help us explore what are the kinds of training and interventions needed to ensure data security and good digital hygiene when it comes to digital inheritance.
Thirdly, you could propose recommendations on national inheritance and data protection laws to address the best procedures and practices of carrying out digital inheritance. This is important because legal frameworks need to clearly address how digital assets can be included in a will and properly managed during succession.
In closing, the times ahead are quite exciting. It is therefore wise to know and understand the digital assets one has, to develop a culture of writing a will and leaving clear instructions on how one’s assets should be distributed and managed, and to ensure we responsibly use technology to afford us proper benefits of our assets.
