With more people relying on digital platforms for banking, investing, and communication, incorporating digital assets into estate planning has become essential. Proper planning ensures these assets are managed according to the owner’s wishes after death.
Identify key digital assets
First, create a comprehensive list of digital assets. These can include online banking accounts, email, social media profiles, and cloud storage accounts. Categorizing these assets will make it easier to manage them when the time comes.
Designate a digital executor
A digital executor is responsible for managing digital assets. This person ensures that online accounts are handled according to the estate plan. Provide clear instructions on what to do with each account, such as closing them, memorializing profiles, or transferring ownership of certain assets.
Incorporate digital assets into legal documents
Include specific instructions for digital assets in estate planning documents, such as wills or trusts. Work with an attorney to ensure these instructions align with state laws. Some states have enacted laws governing digital assets, and a well-crafted plan will help avoid legal complications.
Ensure secure storage and access
It’s important to store login credentials securely, using password managers or other encrypted methods. Share access to these credentials with trusted individuals, ensuring that your executor can manage digital assets effectively without compromising security.
Planning for digital assets allows beneficiaries to access and manage them according to the estate owner’s wishes.