Estate planning is no longer concerned just with physical assets like your homes, bank accounts and family heirlooms. These days, you also have to consider your digital assets – which include everything from cryptocurrency and cloud storage of your photos to your social media accounts.
If you haven’t considered your digital assets when you were crafting your estate plan in the past, now is the time to start.
What counts as a digital asset?
Digital assets include any content, records or data you store online or on electronic devices. These might be personal, financial or even professional in nature. Common examples of digital assets people have these days include:
- Email accounts
- Social media profiles (like Facebook and Instagram)
- Photos and videos in “cloud” storage
- Online banking and investment accounts
- PayPal, Venmo and other digital wallets
- Cryptocurrency wallets and NFTs
- Domain names and websites
- Subscriptions or loyalty programs with stored value
Some of these assets have monetary value. Others – especially photos – can hold deep sentimental significance for your loved ones. Either way, they need to be addressed by you prior to your death, or your heirs may be at a serious disadvantage.
Why do you need to have a digital asset plan?
Many online platforms have strict privacy policies that prevent access by anyone other than the account holder. Without legal authority or clear instructions, your executor may not be able to access, transfer or close your accounts. Unattended digital assets can also create complications, such as:
- Unpaid subscription fees
- Vulnerable personal information
- Confusion or conflict among family members
- Lost financial value in crypto or online businesses
If you don’t make digital assets part of your estate plan, your digital life can become inaccessible (or vulnerable to abuse) after your death.
How do you protect and pass on your digital assets?
Start by creating a detailed inventory of your digital life. List the accounts, platforms, login information and what you’d like done with each after your death. Then, take these steps to formalize your wishes:
- Name a Digital Executor: In New York, you can appoint someone to manage your digital assets by including that authority in your will or trust. This person can carry out your wishes, whether that’s archiving photos, deleting accounts or accessing crypto wallets.
- Use Trusted Password Managers: Instead of leaving sticky notes or spreadsheets, consider using a secure password manager that allows you to designate a legacy contact or create emergency access.
- Review Each Platform’s Policies: Some services, like Google and Facebook, offer tools to manage your account after death. For example, Google’s Inactive Account Manager lets you decide who gains access and what gets shared.
- Work with an Estate Planning Attorney: The rules surrounding digital assets keep evolving (rapidly) as the digital world continues to change. An attorney can help you build a plan that’s legally sound and tailored to your needs, including incorporating language into your will or trust that complies with New York law and the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA).
Estate planning is about protecting what matters to you. If you’re like most people, that now includes numerous digital assets since digital life and physical reality are increasingly intertwined. With a thoughtful plan, you can ensure your digital legacy is handled the way you want and your loved ones aren’t left in the dark. If you’re ready to take the next step, an experienced attorney can help you navigate every aspect of your estate plan – including your digital footprint.
