In today’s digital age, our online presence extends far beyond emails and social media. Many individuals now own digital assets, including cryptocurrencies, domain names, and online investments. With the increasing financial and sentimental value of these assets, it has become crucial to include them in estate planning.
The Dubai International Financial Centre (DIFC) Courts have introduced the Digital Assets Will, a pioneering service designed to securely and efficiently manage and distribute digital assets. This innovative offering ensures that individuals retain full control over their digital wealth and provides a seamless process for asset allocation. The DIFC Digital Assets Will provides a legally binding and secure method to ensure that these assets are managed and distributed according to the testator’s wishes.
This blog is a part of How to Register a Will in the UAE blogpost.
Key Features of the DIFC Digital AssetsWill
- Non-Custodial Wallet: The DIFC Courts provide a secure wallet where testators can store and manage their digital assets without third-party control. The DIFC Court’s wallet is built on the Hedera Distributed Ledger Technology.
- Flexible Asset Distribution: Individuals can allocate digital assets to chosen beneficiaries during their lifetime or specify how they should be distributed upon their passing.
- Global Accessibility: The Digital Assets Will can be created and managed entirely online, making it accessible from anywhere in the world.
- Secure Storage and Legal Validity: Wills are encrypted and securely stored within the DIFC Courts database, ensuring integrity and legal enforcement.
- Supported Digital Assets: The non-custodial wallet currently supports Ethereum Classic (ETH), Bitcoin (BTC), Matic, USD Coin (USDC), Tether (USDT), Hedera (HBAR), and Hedera Token Service (HTS) with future support expected for NFTs and other digital assets.
The Importance of Including Digital Assets in Estate Planning
Including digital assets in your Will ensures:
- Control & Management: Clearly define how your digital assets should be handled after your passing.
- Executor Access: Provide authorized individuals with the necessary credentials to manage these assets.
- Avoiding Legal Complications: A well-drafted Will prevents disputes and streamlines the probate process.
- Preservation of Digital Legacy: Ensure sentimental digital assets are protected for loved ones.
- Financial Realization: Digital assets with monetary value are properly distributed.
Registration Process for the DIFC Digital Assets Will
The process for registering a Digital Assets Will in DIFC is streamlined and convenient:
- Online Registration: Testators visit the DIFC Courts’ online portal and select the Digital Assets Will option.
- Information Submission: Personal details, along with executor and beneficiary information, are provided.
- Appointment Scheduling: A suitable time is selected for an online video conference.
- Virtual Signing: The Will is electronically signed during the video call using a touch screen device, witnessed by a DIFC officer.
- Secure Storage: The signed Will is securely stored in the DIFC Courts’ database.
- Wallet Access: Testators receive access to their DIFC Courts’ non-custodial wallet, allowing them to manage their digital assets efficiently.
Legal Considerations for Digital Assets in UAE
While the UAE does not have specific laws governing digital asset inheritance, general inheritance principles apply. The DIFC Courts’ initiative ensures compliance with international legal standards, providing an effective solution for individuals looking to secure the testators digital wealth.
Benefits of the DIFC Digital Assets Will
The Digital Assets Will provides numerous advantages:
- Strong Security: The non-custodial wallet safeguards assets against unauthorized access.
- Convenience: The online registration eliminates the need for paperwork and physical meetings.
- Flexibility: Testators can update their Wills as circumstances change.
- Legal Assurance: The DIFC Courts ensure that the Will is legally binding and enforceable.
How to Ensure Proper Management of Digital Assets
To effectively include digital assets in your estate planning, consider the following steps:
- Create an Inventory: Document all digital assets, including access credentials.
- Seek Legal Advice: Consult a legal professional like us, ATB Legal, who are familiar with UAE laws.
- Define Instructions Clearly: Specify how assets should be managed and distributed.
- Appoint a Digital Executor: Choose a trusted individual to handle digital assets.
- Regular Updates: Periodically review and update your Will.
- Educate Beneficiaries: Inform them about the digital assets and their accessibility.
The DIFC Digital Assets Will is a revolutionary tool designed to ensure the secure and efficient management of digital wealth. As digital assets continue to play a crucial role in modern wealth management, having a legally binding and accessible estate plan is essential. By leveraging DIFC’s cutting-edge legal and technological solutions, individuals can safeguard their digital legacies and ensure that their assets are distributed according to their wishes.
For more information or to register a Digital Assets Will, please contact us at www.atblegal.com or email office@atblegal.com. We are a DIFC Registered Wills Draftsman and we can assist you in registering your Digital Assets Will in DIFC.
