Ensuring Your Digital Legacy

In today's digital age, whether you choose the traditional method of storing physical documents or prefer the convenience of digital storage, most of us possess valuable digital assets.

It is crucial to plan for the management and distribution of these assets in case of incapacitation or death. Here are some key considerations to keep in mind when it comes to estate planning for digital assets:

Defining Digital Assets

Broadly speaking, digital assets encompass any electronic data that you have the right to access. This includes email accounts, social media profiles, online subscriptions, e-commerce accounts, loyalty programs, online banking, mobile apps, and even cryptocurrency wallets.

Importance of Digital Asset Planning

Digital assets hold significant value, comparable to physical assets like cash or credit cards. While it's easy to overlook them, consider the implications of losing access to your digital treasures.

For instance, if you store precious family photos solely in digital format, their loss would be irreplaceable for you and your loved ones.

Protecting and Organizing Your Digital Assets

Start by creating a comprehensive list of your digital accounts, noting down the associated usernames and passwords.

Prioritize this list based on the accounts your loved ones would need access to in case of your incapacitation or passing. Ensure that your estate plan includes accounts that are crucial to your personal and financial affairs.

Addressing Digital Assets in Your Estate Plan

Most states have laws that grant executors (under a Last Will and Testament) or agents (under a Power of Attorney) the authority to manage and access a decedent's digital assets. It is vital to explicitly reference these rights in your estate planning documents, including your Will, Power of Attorney, and Revocable Trusts if your digital assets are transferred to a Trust.

However, gaining authority and actually accessing digital assets can differ due to the strict guidelines set by various digital platforms. Therefore, it's essential to review the Terms of Service Agreements of your digital providers to determine if third-party authorization is possible. Platforms like Facebook offer a "legacy contact" option, allowing you to appoint someone to manage your account after you pass away as per your instructions.

Provide clear instructions in your estate planning documents or a separate letter, guiding your Executor, Trustee, and/or Agent on where to find your passwords, how to handle your digital asset and social media accounts, and who should receive your digital assets.

Conclusion

Digital assets are an integral part of our lives, deserving the same level of attention and planning as other tangible assets. By proactively addressing your digital legacy, you can ensure the smooth management and distribution of your digital assets according to your wishes.

Consult with an experienced estate planning attorney familiar with digital assets to tailor your plan to your specific needs and legal requirements.