Technology has become a big part of our lives, and so have digital assets. From online bank accounts and social media profiles to cryptocurrency and cloud storage, we store a lot of valuable information online. But have you considered what will happen to these assets if something happens to you?
Without proper planning, your loved ones may struggle to locate or access your digital property. In some cases, they may even be legally restricted from doing so. Just like your physical assets, your digital assets need to be protected and passed on according to your wishes. Here are five simple steps to ensure your digital assets are properly managed in your estate plan.
1. Make a List of Your Digital Assets
Start by creating an inventory of all your digital assets, including:
✔ Online financial accounts (banking, investment, PayPal, Venmo)
✔ Email accounts
✔ Social media profiles (Facebook, Instagram, LinkedIn)
✔ Websites or blogs you own
✔ Cryptocurrency wallets and keys
✔ Digital photos, videos, and documents stored online
For each asset, list the account details and login credentials. Store this list securely, such as in a password manager or a safe deposit box. Update it regularly as you create new accounts or change passwords.
2. Include Digital Assets in Your Estate Plan
Clearly outline in your estate plan who should inherit your digital assets and how they should be handled. Do you want your social media accounts to be memorialized or deleted? Should your cryptocurrency be passed on to a specific person?
However, never include usernames, passwords, or security keys in your will – wills become public records after death. Instead, store this information securely and provide instructions to your executor on how to access it. Digital asset management services, like Directive Communication Systems, can help simplify this process.
If you own cryptocurrency or other highly encrypted assets, consider adding provisions that allow your executor to hire an IT expert to assist with access.
3. Set Privacy and Access Controls
Think about who should have access to your digital accounts after you pass away. Some assets may contain private or sensitive information that you may not want shared.
Your estate plan should specify:
✔ Who can access and manage your online accounts
✔ Whether certain accounts should be closed or deleted
✔ If you want your executor to review personal content, such as emails or photos, before transferring or deleting them
If you have specific privacy concerns, we can help ensure your wishes are legally protected.
4. Include Devices in Your Estate Plan
Your digital assets are often stored on physical devices like smartphones, laptops, and external drives. Be sure to include these devices in your estate plan and specify who should inherit them.
Remember, the person inheriting your digital files doesn’t have to be the same person who gets your device. Your estate plan should make it clear who has permission to access and manage the data on your devices.
5. Use Built-In Account Tools for Digital Legacy Planning
Many online platforms now offer tools to designate someone to manage your account after your passing. Some common options include:
✔ Google’s Inactive Account Manager – Allows you to choose someone to access your Google accounts (Gmail, Google Drive, etc.)
✔ Facebook’s Legacy Contact – Lets you name someone to manage or delete your account after you pass
✔ Instagram’s Memorialization Option – Allows a trusted person to request account deletion or conversion to a memorialized profile
Check the terms of service for each platform and ensure that the individuals you designate match the beneficiaries in your estate plan. If there’s a conflict, the service provider’s rules may override your estate plan.
Stay Updated with Technology and Your Estate Plan
Technology is constantly changing, and so are your digital assets. Make sure to review and update your estate plan regularly to keep up with new accounts, passwords, and privacy settings.
At Cheever Law, we understand the importance of protecting both your physical and digital assets. We can help ensure your online property is safely managed and passed on according to your wishes.
We don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Life & Legacy Planning Session. This will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.
To learn more about our one-of-a-kind systems and services, contact us or schedule a no-obligation 15-minute introductory phone call today.