Most people carefully plan who receives their physical assets, like the house or car, after they pass away. However, even in today’s digital age, many still forget to consider what happens to their online presence and digital data when they die.
Why digital estate planning matters
Digital estate planning involves organizing and protecting your online accounts, files and digital property for after you’re gone. Digital assets can hold both sentimental and financial value that your family may lose without proper planning.
These assets can include everything from Bitcoin worth thousands of dollars to precious family photos stored in the cloud. Including digital assets in your estate plan ensures your loved ones can access and keep something important to you.
Common digital assets to inventory
Your digital estate includes more than you might think. Important digital assets include:
- Online banking and investment accounts
- Digital investments, like cryptocurrencies and non-fungible tokens (NFTs)
- Social media profiles and accounts
- Digital photos and videos stored online
- Email accounts and messages
- Online business accounts and websites
- Digital games, music, books and movie collections
Different assets may require different ways of handling and passing onto beneficiaries. These assets are also part of the probate process.
Steps to protect your digital legacy
Start by creating a comprehensive list of all your digital accounts and assets. Document usernames, passwords and security questions in a secure file or location. Save important digital files in multiple safe places and keep backup copies.
In your will, give clear permission for your executor to access your digital accounts and assets, especially your emails. This can help minimize headaches for them and your family once you’re gone.
Planning ahead for your digital future
Your digital assets face an uncertain future without proper planning in place. Digital estate planning is still a work in progress, but that’s no reason to avoid making your own plans now. Working with an experienced estate planning attorney helps you make better sense of what to consider for a digital asset estate plan.
