ESTATE PLANNING FOR DIGITAL ASSETS
As technology has evolved, so too has the way we store and access our personal assets; and estate planning for digital assets. Nowadays, many of our important documents and treasured memories exist online, and it’s important to ensure that they are included in our estate plans. Here’s what you need to know about estate planning for digital assets.
What are digital assets?
Digital assets are any digital files or online accounts that you own, such as social media profiles, email accounts, online photo libraries, digital music collections, and cryptocurrency wallets. They may also include any devices that you use to access these assets, such as smartphones, laptops, and tablets.
“Plans are nothing; planning is everything.” – Dwight D. Eisenhower
Why include digital assets in your estate plan?
Failing to include your digital assets in your estate plan can lead to confusion, frustration, and even legal issues for your loved ones after you pass away. They may have difficulty accessing important documents, sentimental photos, or other assets that exist only in digital form. In addition, without proper planning, your online accounts may be vulnerable to hacking or other security breaches.
How to plan for digital assets in your estate plan?
Here are some steps you can take to ensure that your digital assets are properly accounted for in your estate plan:
- Take an inventory: Start by making a list of all your digital assets and accounts. This should include usernames and passwords, as well as any instructions for accessing them.
- Decide who will manage your digital assets: Consider appointing a digital executor, who will be responsible for managing your digital assets after you pass away. This person should be tech-savvy and able to handle any necessary password resets or other technical issues.
- Determine what should happen to your digital assets: Decide what you want to happen to your digital assets after you pass away. You may want to designate specific beneficiaries for certain accounts, or give your digital executor broad discretion to distribute your digital assets as they see fit.
- Update your estate planning documents: Make sure your will, trust, or other estate planning documents reflect your wishes regarding your digital assets.
- Consider using a password manager: Using a password manager can make it easier for your digital executor to access your accounts after you pass away. Just be sure to share the master password with them in a secure way.
- Review and update regularly: It’s important to review and update your list of digital assets and your instructions for managing them regularly, as your accounts and online activity may change over time.
While digital assets may not have a physical form, they are still an important part of your overall estate plan. By taking the time to plan for your digital assets, you can ensure that your loved ones will have access to your important documents and cherished memories after you’re gone.
