As the world becomes more digital, the importance of including digital assets in an estate plan has grown. Digital assets encompass a wide range of items, including online social and financial accounts.
Failing to account for these in an estate plan can lead to complications. Proactive planning helps ensure your loved ones manage these assets according to your wishes.
Identify digital assets
The first step in planning for digital property is to identify all the digital accounts and assets you own:
- Social media profiles
- Email accounts
- Online banking
- Investment accounts
- Digital photos
Many people overlook the value or significance of these assets, but they can have both financial and sentimental value.
Designate a digital executor
A digital executor is someone designated to manage digital assets after death. This role is similar to that of a traditional executor but focuses on online accounts and digital property.
Select someone trustworthy and tech-savvy for this role. Legally document this designation in your estate plan.
Provide access and instructions
The digital executor needs access to necessary login information. This includes usernames, passwords, and security questions for various accounts.
Store this information in a secure location, such as a password manager or a physical document in a safe deposit box. Additionally, your estate plan needs clear instructions on how to handle each account. This should include whether to close, transfer, or memorialize them.
Keeping your plan updated
Digital assets, like traditional assets, can change over time. Regularly update your list of digital assets and review the instructions for managing them. This ensures the estate plan remains current, streamlining management and preserving your digital legacy.