Why Digital Estate Planning Matters
In today’s digital world, many of our assets exist online—from social media accounts and digital photos to cryptocurrency and online banking. Without a clear plan, your loved ones may struggle to access or manage these digital assets after you’re gone. Proper estate planning for digital assets ensures your wishes are followed and your online presence is handled appropriately.
What Are Digital Assets?
Digital assets include any electronically stored content, accounts, or information you own online. Some common digital assets include:
- Financial Accounts: Online banking, PayPal, Venmo, cryptocurrency (Bitcoin, Ethereum, etc.).
- Social Media Accounts: Facebook, Instagram, Twitter, LinkedIn.
- Email Accounts: Gmail, Yahoo, Outlook.
- Digital Media: Photos, videos, e-books, music libraries.
- Subscriptions and Rewards Programs: Streaming services (Netflix, Spotify), airline miles, online memberships.
- Business Digital Assets: Websites, domain names, digital storefronts.
Steps to Include Digital Assets in Your Estate Plan
1. Take Inventory of Your Digital Assets
Start by listing all your digital assets and associated login information. This list should include:
- Website URLs
- Usernames and passwords (stored securely in a password manager)
- Two-factor authentication methods
2. Determine Who Should Manage Your Digital Assets
Choose a digital executor, a trusted person responsible for handling your digital assets. This could be the same as your estate executor or someone with technical expertise.
3. Outline Your Wishes for Each Asset
Decide what should happen to each digital asset:
- Should social media accounts be memorialized or deleted?
- Who should inherit your cryptocurrency or digital business assets?
- Should personal emails or cloud storage be transferred to a loved one?
4. Securely Store Your Digital Estate Plan
Keep your digital asset list and estate instructions in a secure but accessible location, such as:
- A password manager
- A locked document shared with your attorney or trusted person
- A sealed envelope stored with your attorney or estate planner
5. Include Digital Assets in Your Will or Trust
Legally document your wishes in your will or trust. Some platforms (like Facebook) allow users to select legacy contacts who can manage their accounts after death. A trust may be a good option for assets like cryptocurrency, which can be difficult to transfer.
6. Keep Your Digital Estate Plan Updated
Regularly review and update your digital asset inventory and instructions as you create new accounts or policies change.
Legal Considerations for Digital Assets
- State Laws: Some states have laws (e.g., the Revised Uniform Fiduciary Access to Digital Assets Act, or RUFADAA) that dictate how executors can access digital accounts.
- Terms of Service Agreements: Many platforms have specific rules about account access after death. Check individual policies for details.
- Privacy Laws: Ensure your digital executor has proper authorization to manage your digital assets to avoid legal issues.
Final Thoughts
Planning for digital assets is just as important as managing physical and financial assets in your estate. By taking the right steps, you can protect your digital legacy and make it easier for your loved ones to carry out your wishes.
At Jacobson Family Law, we specialize in estate planning, including digital asset management. Contact us today to ensure your digital and traditional assets are protected and your loved ones have peace of mind.
Looking for more insights on estate planning and family law? Tune in to our podcast, where we discuss important legal topics, offer expert advice, and answer common questions to help you navigate your legal journey with confidence.
