Digital assets encompass everything from social media accounts, email and online banking accounts to digital photos, music libraries and cryptocurrency. These assets hold both sentimental and financial value, making it important to include them in your estate plan.
You need to know about digital estate planning to protect your online legacy and its management.
The importance of digital estate planning
As of 2023, only 33% of Americans had any form of estate plan, much less a plan for their digital assets. Without a plan in place, your loved ones may face challenges accessing or managing your digital assets after you are gone. They could encounter legal hurdles and lengthy processes, causing unnecessary stress during an already difficult time.
Identifying and inventorying your digital assets
Start by making a list of all your digital assets, including login credentials and any instructions for their management or distribution. Be thorough and include everything from social media accounts to online subscriptions and cloud storage.
Protecting your digital assets
To safeguard your digital assets, consider using a password manager to securely store login information and allow trusted individuals to access your accounts if something happens to you. Additionally, you may want to designate a digital executor who can manage your online presence and follow your wishes.
Creating a digital estate plan
Include instructions in your estate plan for the management and distribution of your digital assets. Specify who should have access to each account and what you want to happen to them after your death. You can also designate someone to delete sensitive information or close accounts you no longer want active.
Regularly review and update your digital estate plan to reflect any changes in your digital assets or personal circumstances. Document your new accounts, passwords or changes in ownership.