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Digital Assets in Estate Planning: What You Need to Know

digital assets chart

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

Digital assets in estate planning are any online or electronic records, such as emails, social media accounts, online banking profiles, digital photos, and cryptocurrencies. As our lives become more digitized, these assets can hold significant financial or sentimental value. Without proper planning, digital assets can be challenging to locate and manage, making it essential to include them in your estate plan.
Tips for Including Digital Assets in Your Estate Plan:
  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

Managing digital assets in estate planning is essential for ensuring that your online life is handled according to your wishes. By creating a digital asset inventory and including these assets in your estate plan, you can protect your digital footprint and provide clarity for your loved ones. For personalized guidance on how to incorporate digital assets into your estate plan, contact our office today. We’re here to help you navigate the complexities of modern estate planning and ensure that all aspects of your life, both physical and digital, are properly managed.

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