In today's digital age, estate planning has extended beyond the traditional scope of wills and real estate to include a variety of digital assets. As our online presence becomes as significant as our physical one, managing these digital assets has become crucial.
From social media accounts and digital photos to online banking and cryptocurrency, ensuring these assets are handled correctly is an integral part of modern estate planning.
Understanding Digital Assets
Digital assets are not just limited to monetary value like cryptocurrencies or online bank accounts. They also encompass emails, social media profiles, blogs, and even digital collections such as eBooks, music, and movies. These assets are part of your digital legacy and require careful management in the context of estate planning.
The Importance of Including Digital Assets in Your Estate Plan
Neglecting to include digital assets in your estate plan can lead to complications. For instance, loved ones may be unable to access crucial accounts or lose sentimental digital items like photos and videos. Additionally, the risk of identity theft continues even after death, making it essential to plan how to secure or deactivate online profiles.
Steps to Securely Manage Digital Assets
1. Inventory Your Digital Assets
Begin by listing all your digital assets. This includes everything from online accounts (banking, investments, social media, email) to digital files (documents, photos, videos). Don't forget about online rewards points or subscriptions that may have financial or practical value.
2. Include Digital Assets in Your Will or Trust
Once you have an inventory, decide how each asset should be handled after your passing. You can include digital assets in your will or set up a digital asset trust. It's crucial to provide explicit permission for your executors to access your digital accounts; otherwise, they may be violating terms of service or privacy laws.
3. Assign a Digital Executor
Choose a trustworthy individual to act as your digital executor. This person will be responsible for managing your digital assets according to your wishes. Ensure they are tech-savvy enough to handle the task and aware of all legal requirements.
4. Provide Access Instructions
Your digital executor will need access to your accounts. Consider using a secure password manager to store your login information, and include instructions on accessing it in your estate plan. Always keep this information updated.
5. Understand the Terms of Service Agreements
Each digital platform has its own terms of service that can affect how your digital assets are handled after your death. Some platforms like Google and Facebook have specific tools that allow users to designate what happens to their accounts after they pass away. Familiarize yourself with these options and incorporate them into your planning.
6. Consider Privacy and Security
As you plan to manage your digital assets, consider the privacy and security implications. Ensure that sensitive information is protected and that your digital executor understands the importance of maintaining confidentiality.
7. Regular Updates and Revisions
Digital estate planning is not a one-time task. As technology evolves and your digital footprint changes, so should your digital estate plan. Regularly review and update your plan to include new assets and adjust to changing laws and technologies.
Need Legal Assistance? Call Us Now!
Incorporating digital assets into your estate planning is essential in the digital age. By taking proactive steps to manage these assets, you can ensure they are handled according to your wishes and that your digital legacy is preserved. Remember, the key to effective digital estate planning is organization, clarity, and security.
Reach out to Drexler Law today at (719) 259-0050 to learn more.
