In an increasingly digitized world, where we conduct a significant portion of our lives online, estate planning must encompass more than just physical assets. It now means planning for your digital assets as well.
Digital assets encompass a wide range of online accounts, files, and subscriptions that hold personal, sentimental, and financial value. This can include social media profiles, email accounts, online photo albums, digital music and book collections, cryptocurrency holdings, digital documents, and various subscriptions, such as streaming services or online gaming accounts.
Because these digital assets can be dispersed across multiple platforms and devices, it’s necessary to have a comprehensive plan in place. Without proper planning, your digital assets may be lost, get hacked or become inaccessible, causing distress to loved ones who may want to access or manage them after you are gone.
Digital estate planning provides clarity and guidance on how to handle these assets, ensuring that they are preserved, transferred, or deleted according to your wishes.
So today, we’ll talk about key considerations and steps to ensure the smooth transition and closure of your online assets.
Important Steps for Digital Estate Planning
When you’re estate planning, there are some crucial steps you need to take to ensure your family can seamlessly access and manage your digital assets. Here are seven important considerations.
1. Create an Inventory of Your Digital Assets
Begin by making a list of all your online accounts, subscriptions, and digital files. Include relevant login credentials, account numbers, and any instructions on how you want them to be handled.
2. Appoint a Digital Executor or Trustee
Designate a person who will be responsible for managing your digital assets after your passing. Ensure that they’re aware of their role and provide them with the necessary information to carry out your wishes.
3. Review Platform Policies and Terms of Service
Understand the policies and terms of service of each platform or service you use. Some platforms have specific guidelines for handling accounts after the user's death, including options for memorialization or deletion.
4. Specify Your Wishes in Your Will or Trust
Incorporate digital assets into your traditional estate planning documents. Clearly state your preferences for each account and asset, such as whether you want them to be deleted, preserved, or transferred to specific individuals.
5. Consider a Digital Vault or Password Manager
Use a secure password manager or digital vault to store your login credentials and other sensitive information. Make sure your designated executor or trustee has access to this information.
6. Communicate Your Intentions
Inform your loved ones about your digital estate plan. Discuss your wishes with family members or close friends, and ensure they know who to contact when you pass.
7. Seek Professional Guidance
As with all of your estate planning decisions, consult a professional experienced in digital estate planning to ensure your plan complies with legal requirements and covers all necessary aspects. They can guide you through the process and provide personalized advice based on your circumstances.
Periodic Review and Updates
As your digital life evolves, it’s crucial to periodically review and update your digital estate plan. New online accounts, changed passwords, or revised terms of service may require adjustments to your plan.
Stay proactive and keep your digital executor informed about any changes or additions to your digital asset inventory.
Why You Need an Estate Plan For Your Digital Assets
In an era dominated by digital interactions and virtual assets, estate planning must adapt to accommodate the management and preservation of our digital lives.
By proactively addressing your digital assets in your estate plan, you can ensure that your online presence is protected, your wishes are honored, and your loved ones are provided with the necessary information and access.
Invest time in crafting a comprehensive digital estate plan to secure your virtual legacy and achieve peace of mind for your family in the future. Need help? Get in touch with the Koroll & company team of chartered professional accountants today.
