Why Your Digital Assets Deserve a Place in Your Estate Plan
In today's digital age, our online presence and digital assets have become as integral as physical property. Yet, they are often overlooked in traditional estate planning. It's time to change that. In this comprehensive blog, we'll explore why your digital assets deserve careful consideration in your estate plan and provide actionable steps to ensure they are effectively managed and protected.
Digital Asset Inventory Creation: Assessing Your Digital Estate
Creating an inventory of your digital assets is the first crucial step. Your digital estate encompasses a wide range of assets, including:
Social media accounts (Facebook, Twitter, Instagram, LinkedIn, YouTube, etc.)
Online banking accounts and financial accounts
Digital currencies (Bitcoin, Ethereum, etc.)
NFTs (non-fungible tokens)
Digital media libraries (e-books, music, movies)
Email and communication accounts
Cloud storage (Apple iCloud, Google Drive, Dropbox)
Digital photos and videos
Any other online content you value
Think about where you store items that are important to you. Digital assets include everything from cloud storage and external hard drives to online platforms. It’s important to consider not only their monetary value but also their sentimental worth, ensuring they endure beyond your lifetime.
Managing Access to Your Digital Assets with a Comprehensive Plan
After listing your assets, focus on how they should be managed. Many online platforms offer tools empowering you to decide the future of your accounts. For instance, Facebook allows you to appoint a legacy contact to manage or memorialize your account, while Google’s Inactive Account Manager lets you specify what happens to your data. Understand these options and use them to dictate how each account should be handled and who has the authority to do so. Clearly outline whether you want accounts memorialized to serve as a digital legacy, deleted, or the data transferred to beneficiaries. With the right planning, you can take steps to protect sensitive information and ensure that your digital legacy is managed in accordance with your privacy preferences.
Navigating the Legal Complexity of Digital Assets
Estate planning for digital assets presents unique legal challenges, including:
Varying platform policies: Understand the terms of service for each platform and ensure that your estate plan complies with their requirements to effectively protect your digital legacy.
State-specific regulations: Laws governing digital assets vary by jurisdiction, so it's essential to consult with legal experts familiar with the laws in your area.
Digital asset trusts: Explore the option of establishing a digital asset trust to provide specific instructions for the management and distribution of your digital assets.
Why Do You Need a Digital Asset Trust?
Incorporating a digital asset trust in your estate planning documents can be instrumental. A digital asset trust provides a solution to these legal intricacies by offering a structured framework for the management and distribution of your digital estate. By establishing a digital asset trust, you can ensure that your online accounts, cryptocurrencies, personal intellectual property, and other digital assets are managed according to your wishes in the event of your incapacity or death. This legal tool not only provides peace of mind but also ensures that your digital legacy is preserved and protected for future generations.
How to Maintain Your Digital Asset Trust
As our digital lives are constantly evolving, regular updates to your digital asset inventory are essential for managing digital assets. This ensures that your estate plan accurately reflects your current digital footprint, wishes, and named beneficiaries or legacy contacts in the event that they pass before you. Additionally, it is important to stay informed of changes to platform policies and legal regulations that may affect your digital estate plan. You can do so by signing up for our Rilus Law monthly newsletter, as we will share updates and new laws to keep our clients informed.
Safeguarding Your Legacy with Digital Estate Planning
Incorporating digital assets into your estate plan is now a necessity. Your online presence holds significant value, both in terms of finances and personal memories. By taking proactive steps to include your digital assets in your estate plan, you can ensure that they are effectively managed and protected according to your wishes. From creating a comprehensive inventory to establishing a digital asset trust, there are various strategies to safeguard your digital legacy and outline your digital asset management preferences. Remember, estate planning is an ongoing process, so be sure to regularly update your plan to reflect any changes in your digital footprint or preferences. With careful planning and consideration, you can ensure your digital life receives the attention it deserves, securing its place in your legacy.