Many people today own an abundance of digital assets. Some of these assets can be just as valuable or sentimental as tangible belongings, making it important to include them in an estate plan.
In California, failing to account for these assets can create complications for your beneficiaries or executors. Proper planning ensures digital assets remain accessible and protected after death.
Identify all digital assets
The first step involves listing all your digital assets. These may include:
- Social media accounts
- Email accounts
- Online banking or investment accounts
- Digital photos
- Subscription services
Include any login credentials and passwords to ensure access. Keeping this information updated will help prevent future complications.
Determine the value and purpose of each asset
It is worth your time to evaluate the importance and value of each digital asset. Some assets, such as cryptocurrency or online stores, may hold significant financial value. Others, like social media profiles, may carry sentimental importance. This evaluation helps prioritize which assets to manage with the most care in an estate plan.
Assign a digital executor
Naming a trusted person to manage digital assets ensures their handling according to your wishes. A digital executor should be someone reliable and capable of navigating online platforms. Ensure that the executor has clear instructions on managing each asset.
Include digital asset instructions in estate planning documents
Incorporate specific instructions for managing digital assets into your estate planning documents, such as wills or trusts. Include details about how to access, transfer, or delete these assets. Additionally, outline any restrictions or preferences regarding the use of these assets.
Keep the plan updated
Technology and online accounts change frequently. Regularly review and update the list of digital assets, login credentials and management instructions. This step ensures the estate plan remains effective and comprehensive.
Including digital assets in an estate plan ensures they remain protected and will pass on smoothly. With proper planning, digital assets can transition seamlessly to the next generation.