How to Protect Your Digital Assets in Your Estate Plan

In today’s digital age, there are a variety of assets that people may own that may not have a physical form. Digital assets can include items such as social media accounts, online banking and investment accounts, email and cloud storage accounts, domain names, and even cryptocurrencies. These assets can hold both sentimental and financial value, and they should be properly addressed in your estate plan to ensure that they are protected after you pass away. An attorney who has experience addressing these concerns can work with you to make sure all of your assets are addressed correctly.

What Are Digital Assets?

Digital assets encompass a wide range of intangible property that exists only in electronic form. They can include: 

• Social Media Accounts: Facebook, Twitter, Instagram, LinkedIn 
• Online Banking and Investment Accounts: PayPal, Venmo, E*TRADE 
• Email and Cloud Storage Accounts: Gmail, Outlook, iCloud 
• Websites or Blogs, including domain names
• Intellectual Property Rights: Digital copies of patents or trademarks 
• Cryptocurrencies: Bitcoin wallets or other virtual currencies 

These digital assets may have both financial value (such as money held in online bank accounts) and sentimental value (such as photos stored on a cloud storage account). It is essential to consider how these assets will be handled upon your passing.

Incorporating Digital Assets into Your Estate Plan

With a full understanding of the types of digital assets you may need to address, you can take steps to protect them within your estate plan. To make sure these assets will be addressed correctly, you can:

1. Create an inventory: Start by making a list of all your digital assets, including the platforms they are on (e.g., Facebook), usernames and email addresses associated with accounts, and any other applicable information. 
2. Discuss assets with your loved ones: Share information about your digital assets with those who will be responsible for implementing the provisions of your estate plan. This can ensure that your family members will understand what assets will need to be addressed and how they should be handled.
3. Create or update a password manager account: A password manager can help to store and organize your passwords for all your digital accounts in one place. This can ensure that others will be able to access your digital assets in the future when necessary.
4. Carry out a digital audit: Review all of your online accounts and decide what you would like to happen to each after your death, including whether you want accounts to be closed permanently or transferred to someone else. 
5. Include specific instructions in your will or trusts: Make sure that you address the distribution of digital assets, ensuring that control of these assets will be assumed by people you trust. You may want to include specific instructions on how different assets should be managed or disposed of. 
6. Grant access with online service providers: Many service providers have specific policies regarding access to accounts or other digital assets after the death of the original owner or account holder. Familiarize yourself with these policies and make arrangements accordingly. 
7. Designate a digital executor: Consider naming an executor who will be specifically responsible for dealing with your digital assets. This person should be tech-savvy, and they should understand the procedures that will be followed to assume control of and manage different assets and accounts. 
8. Store important information securely: Make sure that all login credentials, account information, and access instructions are stored securely, while also providing access to this information to your executor or other designated people.

Contact Our Naperville Estate Planning Lawyer for Digital Assets

Navigating the legal complexities involved in incorporating digital assets into your estate plan can be overwhelming. An estate planning attorney who is well-versed in this area can help you ensure that all issues related to digital asset management will be addressed correctly. At the Gierach Law Firm, our DuPage County estate planning attorney can provide invaluable assistance when creating a comprehensive estate plan that adequately protects your digital assets. Contact us at 630-756-1160 to set up a consultation.