Digital Assets in Estate Planning: What Are They and How to Handle Them
In this day and age, so much of our lives are online - social media and online accounts - what would we do if we didn’t have access to our technology? But this online presence adds another layer to estate planning.
What are Digital Assets?
Digital Assets include the following:
Cryptocurrency (e.g., Bitcoin)
Non-Fungible Tokens (e.g,. Digital art, collectibles)
Digital Media (e.g., Photos, videos)
Intellectual Property (e.g,. Patents, trademarks)
Online Accounts and Data (e.g,. Social media accounts, email accounts)
Software and Code
Why do you need to plan for digital assets when estate planning?
Digital assets require special planning because it can be difficult for heirs to get access to the online accounts. Most digital assets are password-protected and require multi-factor authentication. Your family members, executor, and/or heirs may not have the information needed to memorialize or close the accounts you have or settle final bills.
What should you do?
Inventory all of your digital assets and accounts
Use a password manager or document all of your usernames and passwords
Make sure a trusted individual knows where to locate your account information
State in your legal documents that your named executors have access to your digital accounts, including email correspondence
Don't Leave Your Digital Legacy to Chance
From cryptocurrency and NFTs to social media accounts and cloud storage, your digital assets deserve careful planning. Contact us today for a free consultation on digital asset estate planning. Let us help you organize, secure, and plan for the future of your digital life.
