In the digital age, our online identities and assets form a significant part of our lives. From social media accounts and digital photo libraries to cryptocurrencies and online subscriptions, these assets hold both financial and sentimental value.
Because of the high value that digital assets can have, it is crucial to consider them in your estate planning. This ensures that your loved ones can handle your digital legacy in a way that reflects your wishes. What steps should you take?
Inventory your digital assets.
Digital assets can include a wide range of online accounts and files. These include:
- Social media accounts: Facebook, Instagram, Twitter, LinkedIn and others
- Cryptocurrencies and digital wallets: Bitcoin, Ethereum or digital payment platforms like PayPal or Venmo.
- Online businesses: E-commerce stores, blogs or affiliate accounts.
- Digital subscriptions: Streaming services, online magazines or subscription-based websites.
- Email accounts: Important communications and access to different online platforms.
- Digital files: Photos, videos, music, unpublished manuscripts or work-related documents stored in cloud storage like Google Drive or Dropbox.
Making a comprehensive list of all your digital assets – including user names, passwords and other information – can help you lay the foundation for your plan. Utilize secure methods to store this list, such as encrypted digital vaults, and ensure your executor or a trusted person knows how to access it when needed.
Understand the terms of service.
Different online platforms have varied terms of service regarding what happens to an account after the owner’s death. For instance, Facebook allows you to designate a “Legacy Contact” to manage your profile posthumously. Your access to other digital assets may end with your death. Understanding these policies will help you plan accordingly and include specific instructions in your estate plan.
Secure and back up important data.
Some digital assets, like family photos or business documents, are irreplaceable. Make sure to back up this data in multiple locations, such as an external hard drive or a cloud service, and include instructions on how to access these backups in your estate plan.
Speak with an experienced attorney about how to work your digital assets into your estate plan.
Due to the legal complexities surrounding digital assets, consider consulting with an estate planning attorney. They can ensure that your estate plan addresses each piece of your digital legacy in the way that you want.
Your attorney can help you outline your wishes for your digital assets in the same way that you outline what you want to happen to your other possessions. You can decide whether to delete certain accounts, memorialize others or transfer valuable assets like domains or cryptocurrency to specific heirs.
As our lives become increasingly digital, the need to include digital assets in estate planning becomes more important. By taking steps to secure and bequeath your online presence, you not only protect your digital legacy but also provide clarity and ease for your loved ones who will manage your estate.