Modern Estate Planning: 4 Tips Why You Need to Include Your Digital Assets?

Let’s have that difficult conversation about Estate Planning, but now we need to include digital assets as well. We all think about who will inherit our house and other valuable possessions after we’re gone. But do you think about who will inherit your digital assets? It’s a big and often overlooked decision that deserves careful consideration.

This article delves more into why you should incorporate your digital assets in your estate plan and how you can ensure your digital legacy is passed on according to your wishes. But first, let’s understand what actually comprises digital assets.

What are Digital Assets?

Digital assets are your online accounts and electronic properties that hold financial, sentimental, or practical value. It can include your social media accounts, bank accounts, or even digital photos.

We can widely categorize digital assets into the following categories:

1. Financial Property: Your bank accounts, investment portfolios, cryptocurrency wallets, and any other assets with monetary value.
2. Online Presence: Your social media profiles, email accounts, websites, and subscriptions to online streaming services.
3. Intellectual Property: Copyrighted works, trademarks, patents, or any other associated royalties.
4. Digital Media: Any form of digital content, including your photos and videos stored on your devices or cloud-based platforms.

Importance of Incorporating Digital Assets in Modern Estate Planning

The importance of incorporating digital assets in modern estate planning cannot be overstated. It helps ensure your valuable digital possessions are accounted for and handled according to your wishes. It also prevents unnecessary complications and legal issues your loved ones may have to face to access or manage your digital accounts and information.

Additionally, proper estate planning for your digital assets help protect your online privacy and secure sensitive personal and financial data. Otherwise without clear instructions or designated beneficiaries there will be a risk of unauthorized access or misuse of your assets. It can even lead to privacy breach or identity theft.

How to Include Digital Assets into Your Estate Plan?

Incorporating digital assets into your estate plan involves several important steps:

Tip 1: Create an Inventory

Start by identifying and organizing your digital assets including all your online accounts with their usernames and passwords, including but not limited to:

• Financial accounts (bank, investment, retirement)
• Social media accounts
• Email accounts
• Digital photos and videos
• Cryptocurrency
• Websites or blogs you own
• Intellectual property such as music, art, or writing

Pro Tip:

Store usernames, passwords, and answers to security questions in a secure location. Consider using a password manager or a secure physical location like a safe deposit box.

Tip 2: Specify Instructions

Clearly outline who you wish to pass the access to your digital assets. If you wish to give the access to multiple people, specify their roles and responsibilities regarding each digital asset.

Tip 3: Hire a Designate Executor

Appoint a trusted law firm as your digital executor to properly manage and oversee the distribution of your assets according to your wishes.

Tip 4: Review and Update Regularly

Keep reviewing and updating your digital asset inventory and estate planning documents to reflect any changes in your digital presence or preferences.

Let The Professionals Help!

There can be many complexities involved in your estate plan for your digital assets. From identifying and categorizing all your online accounts to ensuring access and security measures are in place, this job requires careful attention to detail. That’s why you need a professional on your side.

Don’t leave the future of your legacy to chance—schedule a consultation with our law firm today.