Most times when we think of estate planning, the focus tends to be on tangible assets like homes, cars and personal belongings as well as financial assets like banking accounts, stocks and life insurance policies. However, in today’s digital age, it’s equally important to consider your digital assets.
Digital assets come in various forms and it is important to identify, manage and plan for them appropriately to make sure they are protected and transferred according to your wishes.
Digital estate planning tips
Here are some tips for incorporating your digital assets in your estate plan:
- Maintain an inventory of the assets: Generate a thorough list of all your digital assets. This includes online accounts (such as email, social media, cloud storage and subscription services), digital currencies, digital photos and videos, domain names, blogs and any other online or electronically stored property.
- Document access information: For each digital asset, record the necessary access information, such as usernames, passwords, security questions and PINs. Store this information in a secure manner, such as using a password manager or keeping a physical document in a secure location.
- Get a digital executor: You should have a designated trusted individual to act as your digital executor. They will manage your digital assets in accordance with your instructions after your death. Make sure to legally appoint this individual in your estate planning documents.
- Provide clear instructions: Clearly outline your wishes for each digital asset. For instance, specify whether you want certain accounts to be deleted, memorialized or transferred to someone else. Be detailed about how you want digital files, cryptocurrencies and online accounts handled.
- Include digital assets in legal documents: Make sure estate planning documents explicitly mention your digital assets. This inclusion will help ensure they are legally recognized and properly managed during the estate settlement process.
- Keep your plan updated: Regularly review and update your digital asset inventory and access information. As you acquire new digital assets or change account information, make sure your estate plan reflects these updates.
Be sure to seek legal guidance to understand how to effectively include digital assets in your estate plan and better ensure that your wishes are clearly documented and legally enforceable.