Estate planning is as essential today as it has ever been. However, the digital age has added a new wrinkle to the estate planning process. Most people now hold various digital assets they may want to leave to loved ones when they die. Your active role in accounting for these assets is crucial, as failing to do so could leave your loved ones without these assets or deny them valuable information. This post will provide a simple guide to digital assets estate planning, empowering you to take control of your digital legacy.
What You Need to Know About Digital Assets Estate Planning
State governments have started recognizing the importance of accounting for digital assets when someone dies. As a result, most states have enacted some version of RUFADAA. For example, Florida has the Fiduciary Access to Digital Assets Act. These laws provide a framework for allowing executors and heirs to access and use digital assets. The laws also lay out guidelines for disclosing digital assets and their preservation.
Inventory Your Digital Assets
The first step in digital estate planning is to inventory all digital assets. The list could include online bank accounts, digital wallets, email accounts, social media profiles, cloud storage, and digital media. Some people might also own websites, domain names, online businesses, or cryptocurrency. Remember to document each account’s usernames, email addresses, phone numbers, and passwords.
Review Terms of Service and Policies
Once you have a complete inventory of digital assets, reviewing each platform’s terms and conditions is important. Many service providers have specific rules about who can access accounts after death or incapacitation. You might also find that you only hold a license for some assets you think you own. For example, digital media like eBooks or music may not be transferable to heirs. Understanding these terms will help you create a digital estate plan that works for you and your heirs.
Outline Your Digital Estate Plan
Now that you have an inventory and understand the terms of digital platforms, it’s time to outline your plan. You may need to develop varying plans for different assets. Provide clear instructions on whether you want to delete, transfer ownership, or memorialize accounts. With some online assets, you can assign a beneficiary or someone to access the account.
Beyond that, you can designate a digital personal representative. In some cases, someone other than the personal representative of your broader estate might be suitable for managing and distributing digital assets. For example, the personal representative for your broader estate might be your spouse. If your spouse is not tech-savvy, you should designate someone else for digital assets.
Create Your Digital Estate Plan
At this point, you can draft the legal document that will serve as your digital estate plan. It is important to note that it should not be part of your formal will. Since wills are public, you wouldn’t want to disclose sensitive information like account passwords. Include a note or codicil in your will directing your executor to this document. Ensure the document is securely stored, whether with your attorney, in a safe deposit box, or through secure digital storage.
Digital asset estate planning ensures your loved ones can access your digital assets. As a final point, make sure to review and update your digital estate plan as your needs or assets change.
Do you need help with estate planning? Click here to contact the Scott Law Offices. We are elder law experts dedicated to serving seniors and their families. Reach out now to learn more about our services.
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