Should You Include Digital Assets in Your Estate Plan?

In today’s digital age, our lives are more connected to technology than ever before. From social media accounts to online banking, we interact with a variety of digital platforms daily. But have you ever stopped to consider what happens to your digital assets after you pass away?

If you’re planning for the future, it’s crucial to think about how your digital assets will be managed and who will have access to them. So, should you include digital assets in your estate plan? The short answer is yes, and here’s why.

What Are Digital Assets?

Digital assets encompass a wide range of online and electronic records. These can include:

• Social media accounts (Facebook, Instagram, Twitter)
• Email accounts
• Online banking and investment accounts
• Cryptocurrency holdings
• Photos and videos stored in the cloud
• Digital subscriptions (Netflix, Amazon Prime, etc.)
• Online businesses or websites
• Intellectual property stored digitally

 

As our personal and financial lives continue to move online, these digital assets can have significant monetary and sentimental value. That’s why it’s important to ensure they are included in your estate plan.

Why Include Digital Assets in Your Estate Plan?

Failing to include digital assets in your estate plan could leave your loved ones facing unnecessary challenges. Without proper planning, family members may struggle to gain access to your accounts, which could result in the loss of both sentimental items and important financial records.

Here are a few reasons why including digital assets is critical:

1. Financial Value: Some digital assets, like cryptocurrency, online businesses, or domain names, hold significant financial value. If not accounted for, these valuable assets may be lost or inaccessible to your heirs.
2. Privacy Concerns: Without clear instructions, your digital accounts may remain active indefinitely, potentially compromising your privacy. Proper planning allows you to specify what happens to your accounts and how they are managed after your death.
3. Avoiding Legal Issues: Many online platforms have strict terms of service agreements that can complicate the process of transferring digital assets. Including these assets in your estate plan ensures that your executor has the authority to manage them according to your wishes.

 

Steps to Include Digital Assets in Your Estate Plan

1. Create a Digital Inventory: The first step in including digital assets in your estate plan is to create an inventory of all your online accounts, passwords, and digital assets. This includes everything from email accounts to online banking information.
2. Designate a Digital Executor: Just like you would appoint someone to manage your physical estate, you can designate a digital executor to manage your digital assets. This person will be responsible for accessing, managing, and distributing your digital accounts and records according to your wishes.
3. Provide Clear Instructions: Be specific about what you want to happen to your digital assets. Should social media accounts be deleted or memorialized? Who should inherit your cryptocurrency? Providing clear instructions can help avoid confusion and ensure your wishes are followed.

 

Protect Your Digital Assets Today