by James Rust
In an increasingly digital world, a significant part of an individual’s financial and personal life exists online. Bank accounts, investments, email, cloud storage and social media profiles all form part of what are commonly referred to as digital assets. Without proper planning, these assets can become difficult — or impossible — to manage if a person loses mental capacity.
A Lasting Power of Attorney (LPA) is a vital legal safeguard that allows trusted individuals to manage both traditional and digital assets lawfully and effectively.
What Is a Lasting Power of Attorney?
A Lasting Power of Attorney is a legal document under the Mental Capacity Act 2005 that allows an individual (the “donor”) to appoint one or more attorneys to make decisions on their behalf if they lose mental capacity.
There are two types of LPA:
- Property and Financial Affairs LPA – Enables attorneys to manage finances, including bank accounts, investments, property and business interests.
- Health and Welfare LPA – Covers decisions relating to medical treatment, care and living arrangements.
Digital assets and online accounts are primarily managed under a Property and Financial Affairs LPA, although access to communications and personal data may also be relevant.
What Are Digital Assets?
Digital assets may include:
- Online bank, savings and investment accounts
- Pension and financial platforms
- Cryptocurrency and digital wallets
- Payment services such as PayPal or Stripe
- Email accounts
- Social media profiles
- Cloud storage and digital document repositories
- Online subscriptions and utilities
- Websites, blogs and online businesses
Each provider operates under its own contractual terms, which can affect how and whether attorneys are granted access.
LPAs and Online Banking
A Property and Financial Affairs LPA gives attorneys the legal authority to manage a donor’s finances, including those held online. However, banks and financial institutions will not permit attorneys to use the donor’s personal login details.
In practice:
- The LPA must be registered with the Office of the Public Guardian.
- Attorneys must then register the LPA with each financial institution.
- Banks typically issue attorneys with their own access or impose alternative operating arrangements.
- Some institutions restrict online access and require instructions by telephone or in branch.
Advance planning and clear instructions can significantly reduce delays and administrative difficulties.
Digital Accounts and Service Provider Restrictions
Many digital accounts are not owned outright but are governed by licences and contractual terms. This is particularly relevant for:
- Email accounts
- Social media platforms
- Streaming and subscription services
Service providers may restrict third-party access, even where an LPA exists, due to privacy and data protection obligations. In some cases, attorneys may only be able to request account closure or memorialisation rather than full access.
An LPA establishes legal authority but does not override individual platform policies.
Social Media and Online Presence
Attorneys’ ability to manage social media accounts will depend on:
- The wording of the LPA
- The provider’s terms and conditions
- Any advance instructions left by the donor
Some platforms allow users to appoint a “legacy contact” or specify whether an account should be deleted or memorialised. Clear instructions reduce uncertainty and help ensure the donor’s wishes are respected.
Cryptocurrency and Digital Wallets
Cryptocurrencies and digital wallets present particular risks. While an LPA provides legal authority, access is impossible without private keys or recovery information. Without appropriate arrangements, digital assets may be permanently lost. Secure planning solutions and clear guidance are essential for anyone holding crypto or similar assets.
Planning for Digital Assets Within an LPA
Effective digital asset planning includes:
- Clear drafting to ensure attorneys are expressly authorised to manage digital assets and electronic accounts
- Preferences and instructions outlining how digital assets should be dealt with
- A digital asset register listing platforms and providers (without recording passwords in the LPA)
- Regular reviews to reflect changes in technology and account usage
How We Can Help
Digital assets are an increasingly important part of modern estate and incapacity planning. Our solicitors have extensive experience in preparing robust Lasting Powers of Attorney that reflect both legal requirements and practical realities. We can advise on:
- Drafting LPAs that properly address digital assets
- Coordinating LPAs with wills and wider estate planning
- Practical steps to minimise difficulties for attorneys
- Ongoing reviews as circumstances and technology evolve
Speak to a Solicitor
If you would like advice on putting a Lasting Power of Attorney in place or reviewing an existing document, please contact our Private Client team. Early planning provides clarity, security and peace of mind for you and your family.