In today’s digital era, estate planning extends beyond managing physical assets like property or bank accounts. With our lives increasingly conducted online, digital assets are becoming a crucial aspect of modern estate planning. This includes social media profiles, online bank accounts, digital currencies like Bitcoin, and more. But have you considered what happens to these digital assets in estate planning after you’re gone?
Why Digital Assets Matter in Estate Planning
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Create a Digital Asset Inventory: Begin by compiling a comprehensive list of your digital assets. This should include usernames, passwords, and other essential access information. Make sure to cover everything from email accounts and social media profiles to digital currencies and online investments. Store this inventory securely, either with your estate planning documents or in a digital vault.
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Designate a Digital Executor: Appoint a trusted individual to handle your digital assets according to your instructions. This person, known as a digital executor, will manage your online accounts and digital properties. Note that not all states have laws recognizing digital executors, so it’s crucial to include specific language in your estate plan.
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Include Specific Instructions in Your Estate Plan: Clearly outline how you want your digital assets managed. For instance, specify whether you wish for your social media accounts to be memorialized, deleted, or transferred to a family member. For online financial accounts, detail who should have access and how the assets should be handled.
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Check the Terms of Service Agreements: Different online platforms have varying policies regarding what happens to accounts after death. Review these terms and incorporate them into your estate plan to avoid potential legal issues for your heirs.
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Update Regularly: Technology and digital accounts are constantly evolving. Ensure you regularly update your digital asset inventory and estate plan to reflect any new accounts or changes in access information.
