Digital Estate Planning: You Need a Digital Asset Trust

As technology advances, more and more of our lives are being digitized. From our online banking and social media accounts to our family photos and videos, many of our most important assets are now stored in the digital realm. Yet, despite the increasing importance of digital assets, many people fail to adequately plan for them in their estate plans.

This is where the Revised Uniform Fiduciary Access to Digital Asset Act (RUFADAA) comes into play. RUFADAA is a law that was enacted in most states in the US to ensure that digital assets are properly managed after a person passes away or becomes incapacitated. The law provides guidance on how digital assets should be accessed and managed by fiduciaries such as executors, trustees, and agents under a power of attorney.

It's important to note that digital assets are not just limited to financial accounts or business-related files. They can also include personal items such as family photos and videos, music collections, and social media accounts. Without proper planning, these assets can be lost forever, or worse, end up in the wrong hands.

Here are some important reasons why estate planning for digital assets is crucial:

Ensuring Your Wishes Are Honored

Estate planning for digital assets allows you to ensure that your wishes are honored after you pass away or become incapacitated. For example, you may want to pass on your digital assets to a specific family member or friend, or you may want to have your social media accounts deactivated. By including digital assets in your estate plan, you can make sure that your wishes are carried out.

Preventing Identity Theft and Fraud

When digital assets are not properly managed after a person passes away, it can leave them vulnerable to identity theft and fraud. For example, if a person's social media account remains active after they pass away, it could be hacked and used to scam their friends and family. By including digital assets in your estate plan, you can ensure that your accounts are properly deactivated or transferred to someone you trust.

Preserving Your Legacy

Family photos and videos are often some of the most important digital assets that you want to pass on to your loved ones. However, if these assets are not properly managed, they can be lost forever. By including digital assets in your estate plan, you can ensure that your family photos and videos are preserved and passed on to future generations.

Managing Cloud Backup Accounts

Many of our digital assets, such as photos and videos, are stored on our phones and computers, which are then backed up to the cloud. However, accessing these cloud backup accounts can be a challenge for fiduciaries who do not have the proper authorization. By including digital assets in your estate plan, you can provide your fiduciaries with the necessary access and authorization to manage your cloud backup accounts.

Your Digital Estate Planning Solution? A Digital Asset Trust.

A Digital Asset Trust allows you to update or modify your digital assets. You can change passwords, update addresses or numbers, add new accounts, delete accounts, etc., infinitely until you die. The terms of the Digital Asset Trust will hold true even with multiple changes to your digital assets. If you relied on sharing passwords with family members but didn’t update your passwords with your loved ones, they would be locked out of your accounts. With a Digital Asset Trust, you have peace of mind that even if you change a password, you have a backup plan in place.

Plan Your Digital Estate with Rilus Law!

Estate planning helps you plan for the future, protect what you’ve built, and take care of your beneficiaries. And an excellent estate plan should include not only the transfer of physical assets but also digital information. Having a Digital Asset Trust is the best way to secure your digital life for your beneficiaries. 

At Rilus Law, we can set up your Digital Asset Trust from start to finish. We help you identify all possible digital assets you might have and help you decide what to do with these assets when you pass. If you need a knowledgeable and experienced attorney to jumpstart your Digital Estate Planning, search no further than Rilus Law. Call us to schedule a free consultation today!