Digital asset estate planning is increasingly important in today’s technology-driven world. It involves organizing and planning for the management and distribution of your digital assets in the event of your incapacity or death. It is important because it helps protect your digital assets, ensures your loved ones know your wishes regarding your online accounts, can help prevent legal disputes and financial burdens on your heirs, preserves your digital legacy, and can help protect your sensitive personal information.
What is a Digital Asset?
A digital asset includes any electronic record or file you possess. This expansive category includes many things, ranging from financial accounts to photos with sentimental value. Essentially, any possession you find valuable that exists electronically qualifies as a digital asset.
Examples include:
- Financial accounts: online bank accounts, investment accounts, cryptocurrency holdings
- Online accounts: social media profiles, email accounts, online shopping accounts with membership rewards or purchase history
- Digital media: photos and videos, music libraries, important documents like digital certificates or wills
- Intellectual property: domain names, websites you have created, creative content with copyright
What is Digital Asset Estate Planning?
Digital asset estate planning is a comprehensive strategy for organizing, securing, retrieving, and distributing your digital assets after your death or incapacity. This organization ensures your loved ones or personal representative (executor) can efficiently manage your digital estate.
Imagine your personal representative needing to locate critical financial documents, access cherished photos, or even close social medial accounts. By organizing your digital assets, you can provide them with a clear roadmap, saving them time, frustration, and potential security risks.
The laws and regulations surrounding data and digital assets are still evolving and vary from state to state. If you or a loved one are thinking of creating a traditional estate plan or want guidance on how to create a digital estate plan, contact a local elder law attorney. For a consultation with our office, please call (850) 894-0152.
