Digital Assets in Your Estate Plan: How to Protect Them
When It Comes to Your Estate Plan, Do You Consider Digital Assets?
Your Estate Plan Is a Critical Part of Asset Protection
We are without question living in a digital world. If you have a business, that business also has an online presence. You probably own domain names and may have online stores.
Even if you don’t own a business, you are likely to have one or more social media accounts. You may own music, movies, artwork and cryptocurrency.
Have you ever considered the financial value of these digital assets? When considering your estate plan, have you also considered what would happen to these digital assets if you were to become incapacitated or die unexpectedly?
Most people don’t think about what would happen were their digital assets to become inaccessible. In many cases digital assets could be valued in the thousands for individuals with movies, music, and artwork, up to multiple millions for businesses.
These assets need to be protected like any other asset that you want to pass on after your demise.
Create An Estate Plan To Protect Your Digital Assets
Everyone 18 years of age and above will be well-served by having an estate plan. We never know what will happen and it is far better to be prepared for the worst and know that your assets are protected than to be in a position where all your digital assets are lost. Your estate plan will protect all of your tangible assets like your home, real estate, automobile, boats. Today, however more people have digital assets that they forget to protect.
Now let’s review exactly what constitutes a digital asset. Digital assets encompass a wide array of virtual items and accounts with sentimental or financial value. Common examples include:
– Online financial accounts (banking, investments, etc.)
– Cryptocurrency wallets and digital currency holdings
– Email accounts and cloud storage
– Social media profiles and blogs
– Domain names and websites
– Online businesses or e-commerce stores
– Digital media libraries (e-books, music, movies)
A few more examples that may slip your mind include:
Ecommerce or marketplace accounts (i.e. Amazon, eBay, etc.)
Photos saved online or on the Cloud
Online chatroom accounts
Cell phone apps
Online dating or gaming accounts
Online accounts for utilities
Loyalty program benefits (i.e. frequent flyer miles, credit card perks, etc.)
Any other personal information you store on your computer, cell phone, or tablet.
Steps to Incorporate Digital Assets into Your Estate Plan
Whether you will be creating a new estate plan or updating an existing one to include your digital assets you’ll want to do some prep work. The following list includes actions to take before and after creating your estate plan. Consulting with an experienced estate plan attorney is one of the most important steps on the list.
- Create an inventory of all digital assets and associated login credentials
- Designate a tech-savvy digital executor or trustee
- Clearly outline your wishes for each asset (transfer, memorialization, deletion)
- Store access information securely, updating it regularly
- Consult an experienced estate planning attorney
- Make sure your estate planning documents authorize your family or trusted individual to access your digital assets
The Importance of Protecting Digital Assets Within Your Estate Plan
Without proper planning, your digital assets could become inaccessible or mishandled after your passing. This could lead to financial losses, identity theft risks, and the potential erasure of cherished online memories. If you would like to update your existing estate plan or are ready to create one, give my office a call at (470) 235-7868.
Looking to find an experienced estate lawyer in the Georgia area who is skilled in asset protection and estate plan preparation? Shannon Pawley is an attorney in Georgia with expertise in estate planning and asset protection. Shannon can provide assistance with creating an estate plan to include making a will and how to establish a trust properly. If you have questions about asset protection or questions about making an estate plan, reach out to Shannon and she will be glad to help answer all the estate planning questions you might have!
