Estate planning is often associated with tangible assets like property, investments, and personal belongings, but as we move deeper into the digital age, there’s a growing need to consider digital assets in these plans.
Digital assets can include everything from online accounts and digital currencies to photos and documents stored online. With much of our lives now online, estate planning for digital assets is an essential step to ensure that these assets are protected and passed on according to your wishes.
Why plan for digital assets?
When someone passes away, their loved ones often need access to a range of digital accounts. This could include social media profiles, online bank accounts, email, and subscription services. Without proper planning, accessing these accounts can be challenging, as digital assets are often protected by passwords and may be governed by strict terms of service agreements. Many online platforms restrict third-party access to accounts, meaning your loved ones may face significant legal hurdles if they attempt to retrieve information or close accounts.
Failing to plan for digital assets can lead to complications. For example, valuable online assets – such as cryptocurrency or intellectual property stored on cloud platforms – could be lost. Additionally, personal or sensitive information might remain online indefinitely, potentially causing emotional distress to loved ones or leaving digital footprints vulnerable to identity theft.
Types of digital assets to consider
Digital assets can be categorized into several types, each with unique considerations for estate planning. These include:
- Financial accounts: Online banking, investment platforms, and cryptocurrency accounts fall under this category. These assets often have real monetary value and need clear instructions to ensure they are accessible to beneficiaries.
- Social media and email accounts: Platforms like Facebook, Twitter, Instagram, and personal email accounts may hold sentimental value, and many people wish for these accounts to be memorialized, closed, or transferred.
- Online business accounts: If you run an online business or e-commerce store, these accounts may be income-generating and require planning to ensure a smooth transition.
- Digital media and cloud storage: Accounts with digital photos, videos, and documents are often valuable and sentimental.
- Subscription services and loyalty programs: These accounts may have accumulated rewards or points with real value and should be handled properly.
How to get started
Here are some steps for including digital assets in your estate plan:
- Create an inventory: Start by making a list of all your digital assets. Include details such as account names, URLs, and, if possible, instructions on where passwords are stored (but avoid writing passwords directly into your estate documents for security reasons).
- Provide access information: Use a secure password manager to store account details, which can be shared with a trusted individual. Many password managers offer options for granting access to a designated person upon your death.
- Name a digital executor: Some states now allow the appointment of a digital executor—a person responsible for managing digital assets upon death. Even if your state doesn’t officially recognize this role, you can still name someone in your estate plan and provide them with guidance.
- Define your wishes for each account: Specify how you want each type of account handled. For example, you may wish for your social media accounts to be memorialized or closed, while financial accounts are transferred to beneficiaries.
- Update regularly: Digital assets and account passwords change frequently, so make it a habit to review and update your digital estate plan annually.
Contact a Fort Lauderdale estate planning attorney today
Digital assets are part of our everyday lives and deserve attention in estate planning. By taking steps now to plan for them, you can save your loved ones potential legal difficulties and ensure that these assets are handled according to your wishes.
At The Levy Firm PLLC, we can guide you through the estate planning process every step of the way. We offer personalized and attentive service to create an estate plan that ensures your wishes are carried out in a way that avoids family disputes and minimizes taxes and court costs.
Learn more about how an experienced estate planning lawyer can help protect your digital assets. Contact us to schedule a free and confidential consultation.