The digital age has brought about a new frontier in estate planning: the protection of our online assets. From social media accounts and email to cryptocurrency and cloud storage, our digital lives hold a wealth of personal and financial value. Yet, many people neglect to consider these assets when planning their estates, leaving their loved ones with a confusing and often daunting task in the wake of their death.
What are digital assets? Digital assets encompass any electronic or virtual property you own. These include, but are not limited to:
- Online accounts: Social media profiles, email accounts, online banking and investment accounts, shopping accounts, gaming accounts, streaming service subscriptions
- Digital files: Photos, videos, music, documents, e-books
- Domain names and websites: Websites you own or manage, domain names you have registered
- Cryptocurrency and digital wallets: Bitcoin, Ethereum, other forms of cryptocurrency and the digital wallets used to store them
- Intellectual property: Copyrights, trademarks, patents
Why is estate planning for digital assets important? Failing to plan for your digital assets can have negative consequences for your loved ones. These include:
- Difficulty accessing accounts: Without your login credentials, your loved ones may be unable to access your online accounts, potentially locking them out of valuable information, financial assets, and treasured memories.
- Identity theft: Hackers and scammers may target your inactive accounts, putting your loved ones at risk of identity theft and financial loss.
- Legal disputes: Without clear instructions, disagreements may arise among your beneficiaries about how to handle your digital assets, leading to emotional distress and protracted legal battles.
- Loss of sentimental value: Precious photos, videos, and other digital memories could be lost forever if no one knows how to access them.
Fortunately, there are steps you can take to ensure your digital assets are handled according to your wishes after your death. Here are some key steps to consider:
- Inventory your digital assets: Make a comprehensive list of all your digital assets, including account names, usernames, passwords, and storage locations. Consider using a secure password manager to store this information.
- Choose a digital Personal Representative: Appoint a trusted individual to manage your digital assets after your death. This person should be familiar with technology and understand your wishes regarding your online accounts.
- Include digital assets in your Will: Clearly state your wishes for your digital assets in your estate planning. This can include instructions for who should inherit specific accounts, whether certain accounts should be closed, and how your digital memories should be handled.
- Use beneficiary designations: Many online platforms allow you to designate beneficiaries for your accounts. This can streamline the process of transferring ownership after your death.
- Talk to your loved ones: Discuss your digital assets with your loved ones, letting them know where your inventory list is stored and who your digital Personal Representative. This will help them navigate the process after your death.
As the digital landscape continues to evolve, new challenges and opportunities will arise in the realm of estate planning. Because online platforms frequently update their terms of service, which can impact your ability to control your digital assets after death, it is important to stay informed about these changes and update your estate plan accordingly. It is also important to be mindful of the potential for abuse when planning for your digital assets. For example, if you give someone access to your social media accounts after your death, they could potentially use them to impersonate you or spread misinformation.
Estate planning for digital assets is an essential step in protecting your online legacy. By taking the time to plan ahead, you can ensure that your loved ones have the information and access they need to handle your digital affairs with ease and respect your wishes.
Remember, your digital assets are just as valuable as your physical ones. Don't let them become a source of stress and confusion for your loved ones after you're gone. Take control of your digital afterlife today and secure your online legacy for generations to come.
Richard P. Breed, III is a partner at Tarlow Breed Hart & Rodgers, P.C. in Boston, Massachusetts. Please connect with Rick at www.linkedin.com/in/rick-breed/
Estate planning for digital assets is an essential step in protecting your online legacy. By taking the time to plan ahead, you can ensure that your loved ones have the information and access they need to handle your digital affairs with ease and respect your wishes.
Remember, your digital assets are just as valuable as your physical ones. Don't let them become a source of stress and confusion for your loved ones after you're gone. Take control of your digital afterlife today and secure your online legacy for generations to come.
Richard P. Breed, III is a partner at Tarlow Breed Hart & Rodgers, P.C. in Boston, Massachusetts. Please connect with Rick at www.linkedin.com/in/rick-breed/
