Digital assets play a significant role in your estate plan. What are digital assets and why should you care what happens to them when you pass away? Two important questions with equally important answers.
Digital assets are online accounts or digital files. Common digital assets include your online financial accounts, social media accounts, images and videos. Failure to include digital assets in your estate plan can make it difficult, if not impossible, for your loved ones to honor your final wishes when it comes to your finances and personal property.
What to include in your estate plan
These assets should be considered and included in your estate plan so your loved ones know how to access your accounts and distribute your assets according to your wishes. Here are some tips on how to include your digital accounts and assets in your estate plan:
- Document your accounts. Keep track of your digital assets so it is easy for your loved ones to find these assets. Make sure you document any assets that may have monetary value, such as an Etsy storefront or cryptocurrency.
- Store login credentials. Keep login information in a safe place, but make sure your loved ones can easily access them. If you keep any login information or other vital documents in a safe, make sure someone managing your estate knows how to access your safe.
- Consider naming a digital fiduciary. You can name a digital fiduciary to manage your digital assets in your estate. This will put one person in charge of managing and distributing your digital assets according to your wishes. This option can give you more privacy and peace of mind that information is not getting lost or shared with the wrong people.
Digital assets may not be on the top of your mind during estate planning. Your estate plan should include everything that may contain value in your life – whether physical, financial or sentimental. Your digital assets can include all three in some cases.
Do not forget about your digital life when creating and revising your estate plan. Though it may seem like a small thing to include, it will make life much easier for your loved ones in the long run.