How Digital Assets Fit Into Your Estate Plan
The majority of folks who are picturing an estate plan think of tangible assets like a home, a bank account, or family heirlooms. But today, many of the things that we prize exist online. Email accounts, digital photos, and social media accounts are all examples of assets that we don’t necessarily think about. They are important for your legacy.
However, most people don’t address how their social media accounts and pictures should be managed after they pass. Without clear instructions, loved ones might struggle to access these accounts. Planning ahead tends to make an enormous difference.
What counts as a digital asset?
Anything you own, control, or store electronically is considered a digital asset. Common examples include:
- Email accounts
- Online banking and investment accounts
- PayPal, Venmo, Cash App, Zelle
- Social media accounts
- Cloud storage
- Digital photos and videos
- Subscription services
- Online business accounts
- Cryptocurrency and digital wallets
- Domain names and websites
- Digital intellectual property
Some of these assets actually have financial value. Others have sentimental value. Both deserve your attention when devising your estate plan.
Why digital assets can create problems after death
Digital assets tend to come with strict privacy rules. Physical property doesn’t. Companies won’t necessarily grant your family access even if they have a valid death certificate. In many cases, loved ones face significant challenges. These include:
- Not knowing what accounts you have
- Not having passwords for your accounts
- Being locked out by two-factor authentication
- Being unable to access your email to reset your accounts
- Losing irreplaceable photos stored on your phone or online
- Missing bills or subscription charges that continue after you die
If you don’t have a plan, your family might waste valuable time trying to recover access. Meanwhile, important information is out of reach.
Digital assets and incapacity planning
Estate planning isn’t just about what happens after you pass. It’s also about what happens if you become incapacitated while you’re still alive. If you’re unable to manage your affairs, your spouse or children might need access to:
- Online bill payment
- Banking and retirement accounts
- Insurance portals
- Medical accounts and patient portals
- Email and important documents stored in the cloud
A comprehensive estate plan that gives power of attorney to a trusted loved one, allows them to act on your behalf when you can’t. However, accounting for digital assets still takes practical planning.
How to include digital assets in your estate plan
The best digital asset plans include three key steps:
- Make an inventory of accounts – List your digital accounts. Include where they are and what they contain. This doesn’t need to be complicated. It should, however, be thorough.
- Store access information securely – You should avoid putting passwords directly into your will. Your will becomes a public document during probate. Instead, use a password manager or a written record kept in a very safe place. You can tell your trusted loved one where to find it.
- Name the right people to manage them – Your executor, trustee, or other agent should have the authority to access and manage your digital assets. Some platforms allow you to establish a legacy contact or set your account preferences in advance.
Talk to a Virginia Beach, VA, Estate Planning Attorney
The Law Office of Angela N. Manz represents the interests of Virginia Beach residents who want to update or draft a comprehensive estate plan. Call our Virginia Beach estate planning lawyers today to schedule an appointment, and we can begin discussing your next steps right away.