Overview
In today’s modern age, technology has become an integral part of our lives. From online banking and shopping to social media and email, most of our personal and financial information is now stored digitally. This brings up an important consideration when it comes to estate planning – what happens to our digital assets and online accounts after we pass away?
Estate Planning
Estate planning is the process of organizing and planning for the management and distribution of a person’s assets and liabilities after their death. Traditionally, this includes physical assets such as property, investments, and valuables. However, with the rise of technology, it is important to also include digital assets and online accounts in estate planning.
Digital Assets
Digital assets refer to any information or data stored electronically. This can include digital photos and videos, music and other media files, documents and spreadsheets, cryptocurrencies, online accounts and subscriptions, and even virtual assets in online games. These assets hold both sentimental and financial value, making it crucial to include them in estate planning.
The first step in incorporating digital assets and online accounts into estate planning is taking stock of all your assets. This includes physical assets as well as digital ones. Create a comprehensive list of all your online accounts and digital assets, including login information and passwords. This will make it easier for your loved ones to access and manage these assets after you pass away.
Next, it is important to designate a digital executor in your estate planning documents. This person will be responsible for managing your digital assets and online accounts according to your wishes. This can be a family member, trusted friend, or professional executor who has knowledge and experience with technology.
Access
One key consideration when it comes to digital assets and online accounts is access. Most online accounts and digital assets are protected by passwords and usernames, and often only the account holder has access to this information. This can make it difficult for your loved ones to access and manage your digital assets after you have passed away.
To address this issue, there are now online services and tools that offer secure password storage and access for designated beneficiaries. These services allow you to store and manage your login information in a secure digital vault and give your designated beneficiaries access to it after your death. They can then use this information to access your online accounts and digital assets as per your instructions.
Another factor to consider is the legal aspect of digital assets and online accounts. Unlike physical assets, there are no clear laws governing these assets in the event of death. This can lead to complications and disputes, especially if you have a significant digital estate. To avoid this, it is important to consult with an experienced estate planning attorney who can help you navigate the legal complexities of including digital assets in your estate plan.
Social Media
In addition to digital assets, social media and online accounts also hold a significant amount of personal data and memories. Therefore, it is important to consider what you want to happen to these accounts after your death. Some social media platforms, such as Facebook, offer the option to designate a legacy contact who can manage your account after you have passed away. This can include memorializing your account, deleting it, or managing it as per your wishes.
It is also important to consider the privacy of your digital assets and online accounts. You may not want certain individuals to have access to your personal information or digital assets after your death. It is crucial to clearly outline your wishes in your estate planning documents and appoint a trusted individual to manage the privacy of your digital assets.
It is worth noting that digital assets and online accounts do not automatically pass to your heirs along with your physical assets. In fact, many digital service providers have policies in place that prohibit the transfer of ownership of accounts upon death. This makes it even more important to include digital assets and online accounts in your estate plan and make your wishes known to your loved ones and appointed digital executor.
Conclusion
In conclusion, estate planning in the modern age must include digital assets and online accounts. It is important to take stock of all your digital assets, designate a digital executor, and clearly outline your wishes for these assets in your estate planning documents. Consulting with an estate planning attorney can also help ensure that your digital assets are managed and distributed according to your wishes. By incorporating these steps into your estate planning, you can help ease the burden on your loved ones and ensure that your digital legacy is preserved.
