From online banking and social media accounts to digital photo albums and email correspondence, much of people’s personal and financial information is digitally stored.
When it comes to estate planning, many people overlook the importance of including these digital assets in their plans.
Understanding digital assets
Digital assets encompass a wide range of electronic records and files, including email accounts, social media profiles, digital photo libraries and cryptocurrency, the latter of which 45 million Americans use. These assets hold not only sentimental value but also significant financial worth. Ignoring them in your estate plan could lead to complications and even loss of valuable resources for your loved ones.
Ensuring access for your loved ones
Incorporating digital data into your estate plan ensures that your loved ones can access and manage your online accounts after you are gone. Without proper planning, they may struggle to locate and gain access to these accounts, potentially facing hurdles such as forgotten passwords or strict privacy policies.
Protecting your digital legacy
Your digital presence is part of your legacy. By including instructions for your digital assets in your estate plan, you can dictate how you want your online accounts managed or memorialized after your passing. This can include designating someone to manage your social media profiles, closing accounts or preserving digital content that holds sentimental value to your family.
Failing to address digital assets in your estate plan can lead to legal complications and disputes among your heirs. Clear instructions regarding the handling of your digital data can minimize the risk of disagreements and ensure a smoother transition of your estate to your beneficiaries.