What comes to mind when you think about your estate – what you own?
Most people think about the traditional “big stuff”: the family home, bank accounts, investments, jewelry, and perhaps a car collection. But what about everything else we interact with daily? The emails, photos, social media accounts, and files we store digitally—the countless online profiles we create and the subscriptions we buy into?
These are all digital assets, and they’re becoming a significant part of our lives and, thus, our estates.
In today’s digital age, estate planning without considering digital assets is like leaving out an entire chapter of your life story. Let’s dive into why these assets matter, what types to consider, and how to start building a practical, future-proof plan that includes your digital life.
So, What Exactly Are Digital Assets?
Digital assets are any electronic records you own, including your data, accounts, and digital files. These assets might include:
- Personal files: family photos, home videos, scanned documents, and personal files stored on your devices or in the cloud.
- Social media accounts: Facebook, Instagram, Twitter, and LinkedIn profiles. Ever wonder what happens to these accounts when you pass away?
- Financial accounts: online banking and investment accounts, PayPal, Venmo, and even cryptocurrency wallets.
- Business-related accounts: If you’re a business owner, your digital presence (like domain names, websites, and digital intellectual property) becomes part of your estate.
- Entertainment and subscription services: Think about Netflix, Spotify, Amazon Kindle, and other services tied to your credit card.
- Other digital property: This might include gaming accounts, email accounts, and other types of stored data that hold value, personal or financial.
Imagine all the pieces of your digital life floating out there in cyberspace without anyone knowing what to do with them. Without a plan, your loved ones could be left guessing or, worse, locked out of things they might need or want to access.
Why Include Digital Assets in Your Estate Plan?
Think about it: if someone needed to wrap up your digital life, could they even find what they needed? Most of us have numerous passwords, multi-factor authentications, and various platforms we access regularly. Leaving behind a digital mess could mean lost memories, locked accounts, or even financial confusion for your loved ones.
By including digital assets in your estate plan, you ensure:
- Security: Sensitive data, financial information, and personal files are protected.
- Control: You get to decide who has access to each asset and how it should be managed.
- Legacy: You can choose what parts of your digital life stay with your family, become archived, or are removed.
- Efficiency: Streamlined processes for your family in managing your accounts, services, and records.
What Should You Include in a Digital Estate Plan?
When planning for your digital assets, consider these essentials:
1. Inventory Your Digital Assets
Make a list. Sounds simple, but this is probably the hardest step. List everything you can think of that exists online or is stored digitally. This includes social media profiles, financial accounts, and devices like computers and phones.
2. Document Your Access Information
Passwords, usernames, security questions—it’s a lot to manage. There are some options here:
- Password managers like LastPass or 1Password can securely store and share your passwords with trusted individuals.
- Securely documented files: Keep a written or digital document in a safe location that your executor can access. However, avoid writing down passwords if security is a major concern.
3. Identify a Digital Executor
Choose someone tech-savvy who can manage this part of your estate. This person may not be the same as your traditional executor, but they can help carry out your wishes regarding digital assets.
4. Define How You Want Assets to Be Handled
Think about which accounts or files you want to be passed on, archived, or deleted. For instance:
- Maybe you want to preserve family photos on Google Photos or iCloud.
- You may want your Facebook account memorialized, while your Twitter account can be deleted.
- Perhaps cryptocurrency should be passed to a specific family member or investments managed in a particular way.
5. Stay Up to Date
Just like your traditional estate plan, your digital estate plan needs to be revisited regularly. Accounts are added, passwords change, and platforms evolve. A simple annual review can help keep everything current.
Good Tools and Resources for Organizing Your Digital Assets
- Digital Vaults: A service like Everplans or Legacy Locker securely stores your digital information and allows you to designate trusted people who can access it after you pass away.
- Secure Cloud Storage: Platforms like Dropbox, Google Drive, and OneDrive can be used to save important files and documents. Just make sure to add instructions on where these files are and how to access them.
- Social Media Legacy Options: Platforms like Facebook allow you to designate a “legacy contact” who can manage your profile after death, offering some control over your social media presence.
These tools can give you and your loved ones peace of mind that everything is organized, secure, and accessible if the unexpected happens.
Putting It All Together: A Practical Plan for Digital Assets in Your Estate
Let’s break down a simple yet effective plan:
- Take an Inventory: Write down all digital assets, accounts, and devices. This is your “digital will” foundation.
- Set Up Access: Use a password manager and note any essential details in a secure document or digital vault. Share access with your digital executor as needed.
- Choose a Digital Executor: Pick someone tech-savvy whom you trust to carry out your digital wishes.
- Outline Your Wishes: For each digital asset, specify whether it should be preserved, transferred, or deleted.
- Store Securely and Update Annually: Keep everything secure and up to date to ensure easy access for your family and executor.
This plan doesn’t need to be overwhelming. Think of it as an extension of your traditional estate plan, just tackling a more modern part of your life. You can work on it in small steps to make it manageable.
Ready to Get Started on Your Digital Estate Plan?
Including digital assets in your estate plan isn’t just a good idea; it’s essential in today’s digital world. These assets, often overlooked, hold real value—both sentimental and financial. If you’ve ever struggled to gain access to a loved one’s account after their passing, you understand how frustrating it can be. Planning your digital estate is one way to help your loved ones avoid that struggle, ensuring a smoother, more organized process for everyone involved.
Need help figuring out where to start? Contact Daly Law Offices today to discuss how we can help you create a comprehensive estate plan that covers every part of your life—digital and otherwise. Don’t leave your loved ones in the dark; let’s put together a plan that brings them clarity and peace of mind.
By taking just a few steps now, you’re not only protecting your assets but also ensuring that your digital legacy is passed on according to your wishes. Ready to take control of your digital life? Let’s make it happen together.
