Nowadays, virtually all young adults in the U.S. are in possession and/or control of important digital assets that need protection in the event of their incapacitation or untimely death. Although it isn’t easy to think about the possibility that one’s life might be cut short without warning, from social media accounts to online file storage, today’s younger generation has a significant digital presence that requires careful planning.
Without a digital estate plan in place, managing these accounts after death or incapacity can be complicated, leaving loved ones struggling to access important information. Also, digital assets that a young person would prefer to keep away from certain parties may be left vulnerable to access by whoever wants to see what that individual has left behind.
Digital estate planning
A digital estate plan serves to outline how a person’s online accounts, digital property and electronic records should be handled if they pass away or become incapacitated. Unlike physical assets, digital assets are often password-protected or subject to strict privacy policies, making it difficult for family members to access them without legal authorization. A well-prepared digital estate plan can help to ensure that these assets are properly managed according to an individual’s wishes.
Many young adults assume estate planning is unnecessary because they do not own a home or have substantial wealth. However, digital assets may represent both financial and sentimental value. Young adults often have online bank accounts, investment portfolios and email accounts that require careful handling. Failing to include instructions for these assets in an estate plan can lead to financial losses or legal complications.
Additionally, many young people have social media profiles, subscription accounts and cloud storage containing personal photos, videos and documents. A digital estate plan can specify whether accounts should be deleted, memorialized or transferred to family members.
Estate planning is not just for older generations. Young adults should take steps now to protect their digital assets and ensure that their online presence is handled according to their wishes in the event that something goes wrong, which it inevitably will at some point. It’s tough to think about, but it is the truth.