In the realm of estate planning, one often overlooks digital assets. Yet, they form a significant part of your legacy. As we immerse ourselves more into the digital age, your online presence and assets become pivotal. Think about your social media accounts, online businesses, digital wallets, or even your humble email account. They all need a plan. So, let’s unpack the essential steps in including digital assets in your inheritance planning.
Understand the Value of Your Digital Assets
First, grasp what digital assets you have and their value. Digital assets aren’t just about monetary worth. They include photos, videos, and even your social media presence.
They hold sentimental value and, in some cases, significant financial value. For instance, if you own cryptocurrency or run an online business, these assets could represent a considerable part of your estate.
List Your Digital Assets
Kick off the process by listing your digital assets. It might seem tedious, but it’s essential. Compile logins for your online accounts, social media profiles, blogs, and digital storage accounts. Don’t overlook your digital devices, such as smartphones, computers, and tablets, which might hold valuable data.
Appoint a Digital Executor
Decide who will handle your digital legacy. This person, a digital executor, will manage your digital assets after you’re gone. Choose someone who is tech-savvy and whom you trust implicitly. Make sure they understand the scope of the responsibility and are willing to take it on.
Understand the Legal Landscape
The legalities surrounding digital assets can be complex. Laws often lag behind technology, creating a grey area in digital asset inheritance. Make sure you’re aware of the terms of service agreements for the platforms you use. These agreements often dictate what can happen to your digital presence after your demise.
Include Digital Assets in Your Estate Plan
Now, integrate digital assets into your estate plan. Your estate planning attorney can guide you through the specifics. Ensure that your will or trust clearly outlines how you want your digital assets managed. Be as specific as possible to avoid any confusion.
Secure Your Data
Security is paramount. Ensure all documents related to your digital assets are secure but accessible to your digital executor when needed. Use secure storage solutions, such as encrypted files or secure cloud storage services, to safeguard your login credentials and digital asset inventory.
Regularly Update Your Estate Plan
As with all aspects of estate planning, keep your digital asset plan current. Update your digital asset inventory regularly. Make sure new accounts are added, passwords are updated, and any disposed assets are removed.
Educate Your Loved Ones
Finally, educate your loved ones about the importance of digital assets in estate planning. They need to understand the significance and value of these assets. It’s not just about money; it’s about preserving your digital legacy for generations to come.
Digital assets are an essential part of your inheritance planning. They require as much attention as your physical and financial assets. By taking the steps to include them in your estate plan, you ensure that your digital legacy is preserved and passed on according to your wishes.
Neglecting digital assets can lead to a mess for your loved ones to untangle. By planning ahead, you can ensure that your online life is as well organized as your offline one. Remember, as the digital world evolves, so should your estate plan. Keep it up-to-date with the changing landscape of your digital life.
In today’s tech-driven world, we must adapt our inheritance planning to include our digital footprints. Don’t let your digital assets fall through the cracks. Take control of your digital legacy, and ensure that every piece of your estate, virtual or otherwise, is carefully accounted for in your final wishes.
Schedule a Consultation Today!
If you are ready to create a holistic estate plan that accounts for your intangibles, we can provide the assistance you need. You can call us at 860-548-1000 to schedule a consultation at our Glastonbury or Westport, CT estate planning offices, you can alternately send us a message through our contact page.
In May 2023, Diana M. O’Rourke joined Nirenstein, Horowitz & Associates, P.C. as an associate attorney in the trust administration department.Diana has five years of experience practicing in the areas of estate administration, estate planning and elder law.She is admitted to practice in the State of Connecticut and is a member of the Connecticut Bar Association, where she is part of the Estate & Probate section and the Elder Law section. She is also a member of the American Academy of Estate Planning Attorneys.