India is gradually transitioning from platform-based policies to a more structured legal approach for digital inheritance. According to BCAS Vice President Kinjal Shah, the Gandhinagar Civil Court in the case of Sadhna Shaishav Shah & Anr. v. Apple Distribution International Limited held that iCloud data can form part of a deceased person's estate. The court observed that the right to privacy does not survive death, establishing a legal precedent for digital asset management after death.
The distribution of digital assets ultimately depends on the presence of a will, as explained by Mumbai-based tax and investment expert Balwant Jain. According to Jain, if a will exists, digital and financial assets are transferred as per its instructions. In the absence of a will, digital assets devolve to legal heirs under succession laws. This framework ensures that digital assets receive proper legal treatment similar to traditional estate planning.
Section 14 of the Digital Personal Data Protection Act, 2023 allows nomination of a person to exercise data rights after death or incapacity, including access and deletion rights. As reported by AQUILAW Partner Soumen Mohanty, the Gandhinagar court ruling recognises digital data as part of a deceased person's estate and allows legal heirs to manage such assets in the absence of a nominee for estate administration purposes. The ruling also notes that privacy rights do not continue after death in the same way they exist during life.
In financial digital assets, a nominee acts as a custodian while ownership continues to rest with legal heirs under succession law, according to BCAS Kinjal Shah. This structure ensures that digital assets receive proper legal treatment similar to traditional estate planning, with the nominee serving as a practical custodian while legal heirs maintain the ultimate ownership rights under succession law. The framework addresses the growing importance of digital footprints in today's connected world.
