When developing your estate plan, you’re essentially directing how your estate will be managed and distributed after your passing. While a traditional estate plan is suitable for managing physical assets and financial affairs, digital estate planning is essential for addressing the increasingly significant aspects of your life that are stored and managed online.
Despite its importance, many people tend to overlook the need to include digital assets and online accounts in their estate planning process. The following reasons highlight why the need for digital estate planning should not be overlooked.
Protection of valuable assets
Life today is intertwined with digital technology in ways we couldn’t have imagined even a decade ago. From online banking and investment accounts to social media profiles and digital photo albums, our digital footprint is vast and diverse. These digital assets hold not only monetary value but also sentimental significance. Failing to include them in your estate plan could result in these assets being lost, inaccessible or even misused after your passing.
Privacy concerns
Another reason you may want to prioritize digital estate planning is privacy concerns. Your online accounts and digital assets often contain personal information, correspondence and sensitive data. Without clear instructions on how to handle these digital assets after your passing, there’s a risk of unauthorized access, identity theft or exploitation of your personal information. Digital estate planning allows you to designate trusted individuals to manage your digital assets while ensuring that your privacy and confidentiality are respected.
Peace of mind for your loved ones
Your digital estate plan includes credentials, instructions and wishes regarding the management of your online accounts and digital assets. By documenting this information and providing clear guidance to your loved ones, you offer them peace of mind during a challenging time. They won’t have to struggle to access important accounts or wonder about your preferences for handling your digital legacy. Instead, they can follow your instructions and carry out your wishes with confidence knowing they are fulfilling your intentions.
Getting legal guidance can help to ensure that your digital estate plan is comprehensive and legally binding. Making this effort can help you to ensure that the rest of your estate plan is “up to snuff” as well.