We live in a world full of technology. We use that technology to make and save things that we can share. Some of those things, such as photos, can be important to us or to others. While we aren’t thinking about our pictures or stories as having value, they can. These are examples of digital assets.
While many people include traditional assets, such as a house, when drafting their estate plans, digital assets, such as online information and pictures in a Last Will and Testament, are also important.
Understanding Digital Assets
Digital assets include social media profiles, email accounts, digital currencies, online subscriptions, and e-commerce accounts. These assets can have considerable sentimental value. Think about family photographs stored on cloud services or social media accounts. Some digital assets have financial value, such as cryptocurrencies, online business ventures such as Etsy and eBay, and reward programs such as airline miles and other credit card points. Planning for handling these assets can prevent potential fights and ensure that your wishes are honored after your passing.
The revised Uniform Fiduciary Access to Digital Assets Act (UFADAA) is one step forward in addressing digital asset management. This law makes it clear how digital assets should be handled when someone dies or is unable to handle their own affairs. The act grants fiduciaries, such as executors and trustees, the ability to access a deceased person's digital assets, ensuring that they can manage these assets as the deceased or ill person would want.
Make Sure Your Digital Assets are Thoroughly Discussed in Your Estate Plan
Including a statement in your will that addresses your digital assets is not enough. Provide detailed instructions on how to get to these assets. This includes passwords, security questions, and any other necessary information so that the person(s) you have chosen can manage or distribute your digital property based on your wishes.
Don’t forget to think about privacy. Choose which assets should be shared and which should remain private. Maybe you want your loved ones to see your digital portfolio but not your private correspondence. It’s important to be clear in your Last Will and Testament.
Many online platforms include guidelines regarding what happens to accounts after a user's death. These are items referred to as “Legacy Contacts” and are common with Apple, Google, and Facebook, as well as other platforms. Learn these terms so you can understand how best to include your digital assets in your estate plan.
As more people recognize the importance of digital legacies, it’s clear that a complete estate plan should include both traditional and digital assets. Neglecting to do this can lead to complications for your heirs, diminish the clarity of your estate plan, and potentially lead to fights among family members.
Proper Planning for Your Digital Assets is Just as Important as Planning for Your Physical Valuables
Planning for your digital assets as part of your estate planning is a necessity! By actively addressing these assets in your Last Will and Testament and understanding the implications of the revised UFADAA, you can ensure that your digital life—just as much as your physical valuables—is managed according to your wishes. This will make a smoother transition for your loved ones.
