For many clients, estate planning discussions focus on traditional assets such as property, superannuation, cash investments and personal possessions. However, the way people build and store wealth is changing. Cryptocurrencies, online businesses, digital investment platforms, intellectual property, domain names, cloud-based assets and even valuable personal data are becoming increasingly common components of modern wealth. Despite this, many estate plans still fail to adequately address how these assets will be identified, accessed and administered when a client dies or loses capacity.
This is creating an emerging challenge for financial advisers and trustees. Unlike traditional assets, digital assets often depend on passwords, multi-factor authentication, digital wallets or platform-specific access requirements. While the owner may have complete control of these assets during their lifetime, family members, executors and trustees can face significant obstacles if clear succession arrangements have not been established. In some cases, substantial value can be delayed, inaccessible or lost entirely because appropriate planning was never undertaken.
Recent commentary from the Society of Trust and Estate Practitioners (STEP) highlighted the growing complexity of managing digital wealth and the increasing need for advisers and trustees to understand how these assets fit within traditional succession and estate planning frameworks. While many legal and regulatory frameworks continue to evolve, practical challenges already exist. Clients own assets that may be easy to acquire but considerably harder to locate, value, and transfer after a significant life event.
Importantly, digital assets extend well beyond cryptocurrency. Many clients now derive value from online businesses, social media accounts, digital content, intellectual property, loyalty points programmes, cloud storage platforms and various forms of electronically stored information. In some circumstances, these assets may represent a material proportion of a client’s overall estate. In others, access to these digital records may be essential in managing other parts of the estate effectively.
One of the most significant risks is that digital assets are often not discussed during advice conversations. Traditional fact-finding processes may capture investments, property and cash holdings, but they do not always prompt clients to consider assets that exist solely in digital form. As a result, advisers may have incomplete visibility over the client’s true financial position while executors and beneficiaries face unexpected challenges later.
The issue also presents governance considerations for advice businesses. As digital assets become increasingly common, advisers should consider whether existing advice processes, fact finds, file review frameworks and succession planning discussions adequately identify these assets and associated risks. While legal and specialist advice may ultimately be required, the first step is ensuring these conversations are occurring.
As client wealth continues to evolve, so too must the advice process. Businesses that adapt their frameworks to recognise emerging asset classes will be better positioned to support clients and identify risks that may otherwise remain hidden. The challenge is not simply understanding digital assets. The challenge is ensuring they are not overlooked when clients need succession planning most.
Call to Action
When was the last time you reviewed whether your advice process adequately captures emerging asset classes?
Many advice businesses maintain robust processes for traditional assets but have not assessed whether their advice framework, client fact finds, file review processes and estate planning discussions properly address digital assets and modern forms of wealth.
AICS conducts independent AFSL and ACL Licence Reviews, Advice Process Reviews, and Governance Reviews designed to identify gaps in advice frameworks, file review procedures, and compliance controls before they become client issues, audit findings, or regulatory concerns. Our reviews assess whether your business remains fit for purpose as client needs, technology and industry risks continue to evolve.
If you would like an independent review of your advice processes, governance arrangements or compliance framework, contact Cheyenne and the team to discuss your business at [email protected] or call 07 3251 2481.
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