Modern estate planning has undergone an enormous transformation with the proliferation of digital assets and online accounts. This shift necessitates careful consideration and planning for their management and distribution after one’s passing.
Without proper digital estate planning, a lot of valuable digital assets may be overlooked or inaccessible to loved ones, which can potentially cause confusion, disputes and even loss of assets or important digital memories. If you are considering creating a digital estate plan, consider the following steps to better ensure it serves its intended purpose.
Thoroughly inventory digital assets
To reduce the possibility of overlooking valuable digital assets, create a detailed inventory listing all online accounts, digital files, cryptocurrencies, intellectual property and other digital properties. Include login credentials, account numbers and any relevant access instructions. Regularly update this inventory as new digital assets are acquired or existing ones are changed.
Place that inventory in safe storage
Protecting the sensitive information contained within the digital asset inventory is paramount. Store this inventory in a secure location such as a password-protected digital file or a safe deposit box. Consider using encryption methods to safeguard sensitive data and ensure that trusted individuals such as your designated digital executor have access to the inventory when needed.
Get a trusted digital executor
One of the most important steps in digital estate planning is appointing a trusted individual to act as your digital executor. This person should be knowledgeable about technology and capable of managing your digital assets according to your wishes. Discuss your intentions with them and ensure they have access to your digital asset inventory and any necessary login credentials.
Clearly outline your wishes
Clearly document your wishes regarding the management and distribution of your digital assets in your estate planning documents. Specify how you want each digital asset to be handled whether it’s transferring ownership, deleting accounts or preserving digital content for sentimental or financial value.
Finally, keep in mind that seeking personalized legal guidance can be invaluable for digital estate planning, helping ensure compliance with laws and regulations while accurately reflecting your wishes in legally binding documents.
