Most adults are probably aware that they need to have an estate plan in place, but some don’t realize that the plan should include digital assets. These are assets that are found online and can include things like emails, cloud storage, social media, subscription services and cryptocurrency. Without having a clear plan in writing, those assets could all be lost when the account holder passes away.
Many online platforms restrict access to accounts after the account holder dies. This means that family members might not be able to get photos, business records or personal communications unless they have the legal means to do so.
Privacy could be compromised due to lack of planning
While personal information is of very limited use after a person dies, leaving these digital assets unaddressed and unmanaged could lead to the exposal of personal information. Thie issue with this is that some of that information might include information for others that are still living. Leaving these accounts active but unmanaged can increase the risk of misuse.
Handling digital assets in estate planning
One of the most important things to remember is that a will becomes a part of public record, which means that usernames or passwords shouldn’t be included there. Instead, include them in a letter of instruction or place them in a specific, known location, and be sure to update them as you change them.
Another issue is assuming that an estate plan will automatically grant access. Many platforms have specific rules, so you should determine how to ensure that your intended beneficiary can access each account that you want them to have. It’s a good idea to include a specific list of digital assets with the beneficiary designation in the estate plan. Alternatively, you can establish a trust to handle digital assets.
Remember, digital assets are only one thing to consider in estate planning. Having experienced estate planning guidance can be critical in creating a comprehensive estate plan.