I have been receiving a lot of questions this week on how to best handle digital assets in estate planning. This topic has increased in conversation as our online presence and digital assets have become as integral to our personal and business lives as physical assets. Yet, when it comes to estate planning, these digital assets are often ignored by estate planning lawyers, potentially leading to significant complications for your loved ones. This blog post from our Tallahassee Estate Planning Lawyer provides several tips on effectively incorporating digital assets into your estate plan.
Understanding Digital Assets
Digital assets include a wide range of electronic records and accounts. Here are some common examples:
- Social Media Accounts (Facebook, Instagram, LinkedIn)
- Online Banking and Investment Accounts
- Email Accounts
- Digital Photo and Video Libraries
- Cryptocurrencies
- Digital Business Operations Data
- Websites and Blogs
- Digital Music and eBook Libraries
Each of these assets carries value, whether sentimental, financial, or both, and requires careful consideration in estate planning.
Why Include Digital Assets in Your Estate Plan?
- Prevent Loss of Valuable or Sensitive Information: Digital assets include business records and personal photographs. Failing to account for these in an estate plan can result in the permanent loss of important data or your loved ones being unable to access your digital assets and accounts.
- Avoid Identity Theft: Securely transferring or closing digital accounts can prevent identity theft and fraud after an individual's death. Often, cyber predators and criminals prey on accounts with deceased or incapacitated owners. By being vigilant with the legacy of these assets, you can help mitigate attacks from predators.
- Maintain Business Continuity: For entrepreneurs, ensuring access to digital assets can be crucial for the business's seamless continuation or orderly closure.
How to Incorporate Digital Assets into Your Estate Plan
- Inventory Your Digital Assets: Create a comprehensive list of all your digital assets, including login credentials. This list should be kept secure and updated regularly.
- Understand Challenges: Laws governing digital assets, especially posthumously, can be complex and vary by location and platform. Some services have specific policies for handling accounts after the owner's death, which can impact estate planning. Review these policies and consult with an Estate Planning Lawyer with any questions.
- Designate a Digital Executor: Appoint a trusted individual as your digital executor to manage the disposition of your digital assets. Ensure they are technologically adept and understand their duties.
- Provide Access Instructions: Your estate plan should include clear instructions on handling each digital asset. Decide whether accounts should be closed, maintained, or have ownership transferred.
- Legal Documentation: Work with an estate planning lawyer to draft legal documents that grant your digital executor the authority to access and manage your digital assets, including incorporating digital directives into your will or trust.
- Review and Update Regularly: As digital assets can change more frequently than physical assets, reviewing and updating your digital estate plan is crucial.
- Securely Store Usernames and Passwords: Store your usernames and passwords in a secure location and ensure that your digital executor can access this list. For additional discussion on some concerns with storing estate planning documents in a safety deposit box, click here for an informative post from our Tallahassee Estate Planning Attorney.
Conclusion
As our lives become increasingly digital, the importance of incorporating digital assets into estate planning cannot be overstated. By managing these assets now, you can ensure that your digital legacy is handled according to your wishes and that your heirs can benefit from them without legal hurdles or other unnecessary complications.
We specialize in modern estate planning techniques encompassing traditional and digital assets. Contact us today to ensure your digital legacy is protected and seamlessly integrated into your comprehensive estate plan.
