What Happens to Your Digital Assets After You Die? (Passwords, Crypto, and Online Accounts)
In our modern world, several aspects of our lives are now online, from emails and social networking sites to financial transactions and digital currency wallets. However, most people forget that these digital assets should be part of their estate plans, which leaves the people left behind with a difficult time managing and accessing them. It is important that we know how digital assets work and what needs to be done regarding our estate plans.
Why digital assets are important
Your digital property comes in a vast array of online items: email accounts, cloud storage accounts, social media accounts, paid subscriptions to various websites and apps, digital products or services you sell, and any other financial accounts, such as PayPal and cryptocurrency wallets.
Not all online property is associated with financial value; some could have only sentimental or personal significance for the deceased individual.
In contrast with conventional property, access to digital assets is governed by privacy and end-user license agreements. Google and Apple have very specific rules regarding access to a particular account in the event of your death; despite knowing the password, you might risk violating their license agreement.
For this reason, RUFADAA (Revised Uniform Fiduciary Access to Digital Assets Act) was created. At this point, more than half of the states have passed RUFADAA, which gives you the right to grant a fiduciary (executor or trustee) access to your digital accounts. Nevertheless, the granting of that authority needs to be specified in estate-planning documents.
Key legal considerations
One of the most significant dangers in digital estate planning is the risk of losing access. Without anyone being able to access your accounts, you could lose critical data, incur overdue bills, and even be unable to recover any cryptocurrency holdings since there isn’t any sort of “customer support” available.
To ensure that your digital estate is managed properly after your death, you need to make an inventory of all your digital assets. This is simply a list of your accounts and usernames, along with instructions on how to log in to each account.
On the one hand, it is not recommended that you include passwords in your will since this becomes part of the public record once probated. However, a list of your usernames and passwords can be stored securely, perhaps using a password manager or other encryption program. Then, your plan can simply mention where to find this list of login information.
Also, consider designating a digital executor, or make sure that your current one knows about and is authorized to handle your digital estate.
Most companies have built-in solutions that can help. You might take advantage of Google’s Inactive Account Manager function, or use Apple’s “legacy contacts” system.
Talk to a Virginia Beach, VA, Estate Planning Lawyer Today
The Law Office of Angela N. Manz represents the interests of Virginia Beach residents who are looking to reevaluate their estate plan. Call our Virginia Beach estate planning lawyer today to schedule an appointment, and we can begin discussing your next steps right away.