Most people carefully plan for the distribution of physical property like real estate, vehicles and personal belongings through traditional estate planning documents. However, many overlook the growing collection of digital assets that have become integral parts of modern life, from social media accounts and online banking to cryptocurrency and cloud storage files.
Digital assets often contain significant financial value, precious family memories and important business information that your loved ones may need to access after your death. Without proper planning, these digital properties could become permanently inaccessible, leaving your family unable to recover valuable assets or important information stored in online accounts.
How to prepare a digital estate plan
Creating a comprehensive digital estate plan requires systematic organization of your online presence and clear instructions for managing these assets after your death. This process involves several essential steps that protect your digital legacy.
- Create a complete inventory of digital accounts: Compile a comprehensive list of all online accounts including email, social media platforms, banking websites, subscription services and cryptocurrency wallets. Include usernames and passwords in a secure password manager or encrypted document.
- Designate a digital executor: Choose a trusted person who is technologically capable of managing your digital assets according to your wishes. This individual should understand your values and have the technical skills necessary to access various online platforms.
- Provide clear instructions for each asset: Specify what should happen to each digital account, whether it should be memorialized, transferred to family members or permanently deleted. Include instructions for handling income generating accounts and ongoing subscriptions that need cancellation.
- Store information securely: Keep digital estate planning documents separate from your traditional will since wills become public records. Use secure storage methods like safe deposit boxes while making sure your digital executor knows how to access these instructions.
- Review and update regularly: Technology and account information change frequently, so review your digital estate plan annually to add new accounts, update passwords and modify instructions as needed.
Digital estate planning becomes increasingly important as our online presence expands. Seeking legal guidance helps create comprehensive plans that protect your digital legacy while complying with current estate planning laws and platform policies.
