The Digital Afterlife: A Guide to Digital Assets and Estate Planning

In today's digital age, our lives are increasingly intertwined with online platforms, digital devices, and virtual assets. From social media accounts and email addresses to cryptocurrency holdings, airline miles and digital photo libraries, our digital footprint grows larger with each passing day. Yet, many individuals overlook the importance of including these digital assets in their estate planning.

As technology continues to advance rapidly, it's essential to understand the implications of digital assets on estate planning and the steps you can take to ensure a smooth transition of your online presence and digital property to your loved ones after you're gone.

Defining Digital Assets

Even if you’ve never invested a cent in cryptocurrency, you still have digital assets which need to be accounted for in any complete estate plan. Digital assets encompass a wide range of online accounts, files, and content that hold financial, sentimental, or personal value. Some common types of digital assets include:

Social Media Accounts: Facebook, Twitter, Instagram, LinkedIn, etc.
Email and Online Communication Accounts: Gmail, Yahoo Mail, etc.
Financial and Cryptocurrency Accounts: Bank accounts, investment accounts, cryptocurrency wallets, NFTs, etc.
Digital Media: Photos, videos, music, e-books, etc.
Domain Names and Websites: Personal blogs, online businesses, etc.
Online Subscription Services: Streaming services, cloud storage, etc.

The Importance of Including Digital Assets in Estate Planning

Failing to account for digital assets in your estate plan can lead to complications and frustrations for your loved ones. Without clear instructions, they may struggle to access or manage your online accounts, or worse, valuable digital assets could be lost forever. Privacy concerns are another motivating factor in ensuring that intangible digital assets are accounted for in your estate plan. Here are some reasons why addressing digital assets in your estate plan is crucial:

Preserving Memories and Legacies: Digital assets often hold sentimental value, such as family photos or personal writings. Including them in your estate plan ensures that these memories are preserved and passed down to future generations.

Protecting Financial Interests: Many digital assets have monetary value, such as cryptocurrency holdings, rewards points and cash back programs, or online businesses. Proper estate planning can help protect these assets and ensure they are distributed according to your wishes.

Managing Online Presence: Without instructions, your social media accounts and other online profiles may remain active indefinitely or be subject to unauthorized access. Estate planning allows you to specify how you want your digital presence managed after your passing.

Privacy: Now is the time to designate the person who should be able to access your digital content after your passing, and to direct that person to preserve or delete such content per your wishes. In certain cases, you may want to ensure your image is not altered or misused, making it important to address post-death use of digital images in your estate plan.

Steps for Including Digital Assets in Your Estate Plan

Take Inventory: Start by creating a comprehensive list of all your digital assets, including login credentials, account numbers, and any relevant instructions for accessing or managing them.

Designate a Digital Executor: Choose a trusted individual who will be responsible for managing your digital assets after your passing. This person should be familiar with technology and capable of carrying out your wishes. Certain companies even allow you set up passkey access for fiduciaries in the event of your passing. We recommend using those in addition to the other methods outlined here.

Update Your Will and Trust: Ensure that your will or trust explicitly addresses your digital assets and includes instructions for their distribution. Be specific about who should inherit each asset and how they should be accessed.

Consider Legal Implications: Terms of service agreements, the Electronic Communications Privacy Act and the Revised Uniform Fiduciary Access to Digital Assets Act may bar certain actions without a properly drafted estate plan vesting authority in a designated individual. It is important to consult with legal and financial advisors to ensure that your estate plan complies with relevant laws and regulations.

Review Regularly: As your digital assets and online presence evolve, periodically review and update your estate plan to reflect any changes or new acquisitions.

In the digital age, estate planning must extend beyond physical possessions to encompass our online lives and digital legacies. By taking proactive steps to include digital assets in your estate plan, you can ensure that your loved ones are equipped to handle your online affairs and preserve your digital legacy according to your wishes. Don't wait until it's too late—start planning for your digital afterlife today.