When most people think about estate planning, they imagine homes, cars, bank accounts, and investments. But today, most of our valuable stuff lives online.
Social media accounts, cloud storage, cryptocurrency, and online businesses all count as digital assets. If you don’t plan for them, your loved ones might be locked out or unsure of what to do.
Here is a look at how to include digital assets in your estate plan so that your online legacy can be passed down and protected for the next generation.
Take Stock of Your Digital Assets
You can start by making a list of everything online that matters to you. This is more than those high-value items. Make sure to consider sentimental or personal value, too. This might include:
- Online banking or investment accounts
- PayPal, Venmo, or other digital payment accounts
- Cryptocurrency wallets
- Social media accounts like Facebook, Instagram, or LinkedIn
- Cloud storage with important documents, photos, or videos
- Websites, blogs, or domain names
- Loyalty rewards, frequent flyer miles, or gift cards
You want to write down account names, usernames, passwords, and any recovery options. A complete inventory makes it easier for your executor or designated agent to manage your digital property.
Decide What Should Happen to Each Asset
Not all digital assets are treated the same. For that reason, you may want different outcomes for different accounts. For example:
- Social media accounts can be memorialized or deleted.
- Online businesses might be sold, passed to heirs, or closed.
- Cryptocurrency and digital monies need clear instructions and access keys.
- Cloud files and documents may go to family or stay private.
When you are specific about your wishes, that prevents confusion and makes sure your wishes are followed.
Add Digital Assets to Your Estate Plan
Your will or trust should reference digital assets. Some people also create a digital assets addendum. This is a separate document listing accounts, access information, and instructions.
However, you will want to avoid including passwords directly in your will. This is a public document. You can keep sensitive information in a secure place and make sure your executor knows how to access it.
Appoint a Digital Executor or Fiduciary
If possible, name someone you trust to manage your digital assets. They should be comfortable with technology and responsible enough to follow your instructions. A digital executor can:
- Access accounts according to your wishes
- Transfer or delete accounts as directed
- Handle online business assets or intellectual property
- Protect sensitive information
Use Secure Storage Tools
Password managers or digital vaults are a great way to store credentials, encryption keys, and recovery information. Some will let you grant emergency access to a trusted person.
Know Platform Rules
Different platforms have different rules for what happens when an account owner passes away. Here is what you can expect from the following platforms:
- Facebook allows accounts to be memorialized or removed.
- Google has an Inactive Account Manager for trusted contacts.
- Cryptocurrency platforms may require legal documentation to transfer ownership.
When you know these policies, you can make sure your estate plan works with each service.
Keep Your Plan Current
Like other parts of your estate plans, digital assets change constantly. New accounts, subscriptions, and technologies pop up, while old accounts may become inactive. Review your plan regularly to make sure everything is up to date, including passwords and security information.
Communicate Your Plan
Finally, let your executor or fiduciary know your digital plan exists. They will not need every password in advance, but they should know where it is stored, how to access it, and who to contact if questions come up.
Add Those Digital Assets to Your Estate Plan
Knowing how to add digital assets to your estate plan can help you make sure that nothing gets left behind. When you plan, you protect their value, preserve sentimental items, and prevent confusion for your loved ones.
At Collins Law Firm, we can help make sure your digital assets are included in your estate plan. With the right planning, you can protect your full legacy, online and offline, and give your family peace of mind. Schedule a consultation today to see how we can assist with your planning.