Many business opportunities and social experiences are now digital. A good portion of people’s daily life occurs online in many cases. As digital holdings have increased, so have the complexities of estate planning. Many people fail to consider their digital resources when drafting their preliminary documents. They may then leave their families in very challenging positions where they don’t have access to key resources or may not even be aware of their existence.
Modern adults need to include digital resources when they begin estate planning or expand their existing documents to address their digital resources. What steps are generally necessary to properly address digital assets in an estate plan?
Create a comprehensive list
There are numerous different assets that may exist digitally without much physical evidence. People may have social media accounts with thousands of followers. They may own active websites or domain names.
Cryptocurrencies and similar digital resources can be very valuable but may exist only in a digital or electronic wallet. People also frequently pay for the digital storage of photographs, videos and critical documents. Providing a comprehensive list of digital resources and account information so that a personal representative can log in and access those resources can help provide the basis for an electronic estate plan.
Reviewing and updating that list annually or every few years and ensuring that there are physical copies of key digital resources, such as a printed list of account logins, can help ensure that the right parties can gain access after the current owner dies.
Address ownership, management and use
Some social media platforms allow people to memorialize their accounts. Others allow for an outside party to assume control of a successful page or profile when the current owner passes. Depending on family circumstances and the overall value of digital assets, testators may need to add them to wills or even establish trusts.
A trust can allow for the long-term retention and management of valuable resources, such as digital financial holdings and successful websites. It is possible to name a competent person to act as trustee and manage those resources while other people are beneficiaries who receive profits generated from those investments or resources. There is no single solution that works for every asset and situation.
Those with digital holdings generally need the insight and guidance of a legal professional to establish the best possible estate plan. Integrating digital assets properly into an existing estate plan – or drafting one from scratch with strong legal guidance – can help ensure that loved ones don’t struggle to gain access or overlook key resources after someone dies.