Estate planning is the process of organizing and protecting your assets, including your digital assets, for after your death or incapacitation. Digital assets include everything from social media accounts and online financial accounts to digital music and photo collections. It’s important to think about what will happen to these assets when you’re no longer able to manage them, as they can have significant sentimental and financial value.
What are digital assets?
Digital assets are any type of online property that you own or have rights to. This can include:
- Social media accounts
- Online financial accounts (e.g., PayPal, cryptocurrency)
- Email accounts
- Digital music and photo collections
- Domain names
- Websites
- Online loyalty and reward programs
It’s important to consider all of your digital assets when estate planning, as they can have significant sentimental and financial value.
Why is it important to include digital assets in estate planning?
There are several reasons why it’s important to include digital assets in your estate planning:
- Digital assets can have significant sentimental value. For example, a social media account may contain valuable memories and personal conversations.
- Digital assets can have financial value. For example, a domain name or website may generate income, or an online financial account may contain a substantial balance.
- Without proper planning, it can be difficult for your loved ones to access your digital assets after your death or incapacitation. This can cause problems if they need to access important information or close accounts.
How to include digital assets in estate planning:
There are several steps you can take to include your digital assets in your estate planning:
- Make a list of all your digital assets. This should include the name of the asset, login information, and any relevant account numbers or passwords.
- Decide who you want to have access to your digital assets after your death or incapacitation. This could be a spouse, family member, or trusted friend.
- Update your will or trust to include your digital assets. Your will or trust should specify who you want to have access to your digital assets and how you want them to be managed.
- Use a digital asset management service. There are several services available that can help you manage and protect your digital assets. These services typically allow you to store login information and other important details in a secure online location.
- Inform your loved ones and/or executor of your digital asset plans. Make sure that the person or people you have designated to manage your digital assets are aware of your plans and know where to find the necessary information.
Conclusion:
Estate planning for digital assets is an important step in protecting and organizing your online presence. By making a list of your digital assets, deciding who you want to have access to them, and updating your will or trust, you can ensure that your loved ones will be able to easily manage and access your digital assets after your death or incapacitation. Using a digital asset management service can also make the process easier and more secure.
This article was published by a third party and is intended for general informational purposes only and does not necessarily represent the views of Legacy Assurance. Some information may not apply to your situation. It does not, nor is it intended, to constitute legal or financial advice. You should consult with an attorney regarding any questions about probate, living probate or other estate planning matters. Legacy Assurance Plan is an estate planning services company and is not a lawyer or law firm and is not engaged in the practice of law. For answers to common questions like “how does a will work” and other estate planning matters, visit our website at legacyassuranceplan.com.
