As technology becomes a standard part of life, seniors must consider their digital assets during estate planning. This involves more than just managing physical and financial assets. It also includes everything from social media accounts to online bank accounts and digital files.
When planning for the distribution of your digital assets, you must use specific strategies.
Identify and catalog digital assets
The first step in managing digital assets is to identify and catalog what you own. This includes email accounts, social media profiles, digital photos, e-books and any online financial accounts like banking, investments and cryptocurrencies. Make a list of all such assets, including how to access them (usernames and passwords) and what should happen to them after your passing.
Understand the value of digital assets
It is important for seniors to recognize the value of their digital assets. Some, like domain names or copyrighted digital content, could have significant monetary value. Others hold sentimental value, which makes them important to family members and friends. Understanding this value helps in making informed decisions about their distribution.
Include digital assets in your will
Once you have cataloged your digital assets and understood their value, the next step is to include them in your estate plan. You need to specify what should happen to each asset. Because digital assets are a relatively new field, you should work with an estate planning attorney who understands how to handle them properly in your will or trust.
Assign a digital executor
Assigning a digital executor is key to managing your digital legacy. This person will be responsible for executing your wishes regarding your digital assets. Their duties can range from closing accounts to transferring ownership of valuable digital properties. Make sure this person is tech-savvy and someone you trust to follow your instructions.
Consider privacy and security
Privacy and security are paramount when dealing with digital assets. Ensure that your plans include secure methods of transferring information about your digital assets to your executor. This might mean using encrypted storage solutions or a secure password manager to maintain this sensitive information.
Estate planning for digital assets is an important part of ensuring people handle your legacy according to your wishes. By taking these steps, seniors can ensure that their digital lives are managed smoothly and securely after they are gone.
