Steps To Include Digital Assets In Your Estate Plan
In today’s world, much of our lives are intertwined with the digital sphere. From social media accounts and online banking to photos stored in the cloud and cryptocurrency wallets, the concept of a “digital estate” has become a significant aspect of modern estate planning. While many are aware of the need for wills and trusts to handle physical and financial assets, fewer people recognize the importance of planning for their digital assets. Below, we explore how to ensure that your loved ones can manage or inherit your digital legacy effectively.
1. Create an Inventory of Digital Assets
The first step in managing your digital legacy is creating a comprehensive inventory of all your digital assets. This includes:
- Social media accounts (e.g., Facebook, Instagram, LinkedIn)
- Online banking and investment accounts
- Cryptocurrency wallets and keys
- Email accounts
- Cloud storage (e.g., Google Drive, Dropbox)
- Digital subscription services (e.g., streaming accounts, online publications)
Document the usernames, associated emails, and passwords in a secure manner, such as using a password manager. This inventory ensures that your loved ones are aware of your digital presence and its extent.
2. Specify Your Wishes in Estate Planning Documents
Once you have an inventory, it’s essential to specify how you wish these assets should be handled. Do you want your social media accounts memorialized, deactivated, or deleted? Would you like someone to manage your cryptocurrency investments after your passing? Including these instructions in your estate planning documents, such as your will or trust, provides clear guidance to your executor or designated digital trustee.
3. Appoint a Digital Executor
A digital executor is a person that may be appointed to manage your digital assets after your death. This person may not have the same legal recognition as a traditional executor in all jurisdictions, so ensure that your estate planning attorney helps you incorporate these instructions legally and effectively.
4. Utilize Digital Legacy Tools
Many major platforms now offer legacy management tools:
- Google’s Inactive Account Manager lets you designate who will have access to your account and data if it becomes inactive.
- Facebook allows you to set up a legacy contact to manage your profile after your death.
- Other services may offer similar options, so review the tools available for each platform where you maintain accounts.
5. Keep Your Plan Updated
Your digital footprint may evolve over time as you open new accounts, invest in new types of assets, or close old accounts. Regularly updating your digital asset inventory and instructions in your estate plan ensures that your loved ones will not face challenges with outdated information.
As our lives become more enmeshed with the digital world, including digital asset management in your estate plan can become not only wise but necessary. Without a plan, accessing or managing digital accounts after a loved one’s death can be difficult and, at times, impossible. By creating a comprehensive inventory, specifying your wishes, appointing a digital executor, and using platform-specific tools, you can provide your family with clarity and peace of mind in managing your digital legacy.
Your Attorney…
Dana M. Cannon
I am a wife, stepmother, new grandmother, and dog mom. I am a long-time resident of Long Beach, California. I grew up on the beaches of Orange County. I am proud to provide estate planning, trust and estate administration and litigation services to Long Beach, Seal Beach, and all of Orange County, Los Angeles County, and the surrounding counties of Southern California. My husband and I are avid boaters and spend several weeks a year on Catalina Island with our bulldogs.
I know that you have lives, families, careers, and other things that are important to you. As your attorney, my goal is to help to demystify the legal process and allow you to focus on what matters to you.
I have nearly 30 years of experience with Estate and Trust Litigation matters. As an attorney, I have successfully administered, litigated, and settled small estates involving minimal assets, complex matters with assets in excess of $30 million, and everything in between.
My passion and drive to help clients stem from my personal experience with a family dispute involving my grandmother. I know firsthand the emotional toll a legal dispute involving a loved one can take on a family.
It is my objective to ensure that my clients are well-informed every step of the way, confident that their rights are being protected, and that all parties involved are treated with respect.
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