The digital age has changed every area of life, and estate planning is no exception. Digital assets can be high in value and they can also be sentimental.
Nonetheless, many people forget to incorporate digital assets into their estate plan. This means that they can end up in the wrong hands. Here are some important points to consider.
What are digital assets?
The first step of creating a digital estate plan is to identify the assets. Some of the more common digital assets include:
- Cryptocurrencies: cryptocurrencies have been around for a while, but their popularity has surged in recent years. If you have cryptocurrencies like Bitcoin, this is definitely something that you want to include in your estate plan.
- Online accounts: Bank accounts are largely dealt with online. Accounts like PayPal are also a potentially valuable digital asset. Furthermore, social media accounts can drive value and they may contain sensitive information. It’s important to include all types of online accounts in your estate plan.
- Cloud storage: While many still cherish physical family photo albums, cloud storage has changed how pictures are kept. Digital family pictures contain memories, and they should be incorporated into your estate plan.
How can you incorporate digital assets into your estate plan?
There are several strategies that you can implement to incorporate your digital assets into your estate plan. For example, you can:
- Take an inventory of your digital assets: Once you start thinking about what your digital assets are, more will probably become evident. You should write these down and create an inventory.
- Choose your digital executor: This is the person who will manage your digital assets after your passing.
- Use estate planning tools for instructions: You can include digital assets in your will and other estate planning documents. You can provide instructions on who you want to receive these assets.
While drafting your digital estate plan, it can help to have legal guidance on your side.