Nowadays, most of our assets exist in digital form. Our money is deposited and transferred through online banking, our photos and videos are stored in cloud-based accounts, and platforms like Instagram have effectively become our digital photo albums. These digital assets are important and are often overlooked when planning for death or incapacity. To ensure your loved ones can access these assets, you should consider digital estate planning.
What Is a Digital Asset?
A digital asset is an electronic record in which an individual has a right or interest. However, this term does not include any underlying asset or liability unless that asset or liability is itself an electronic record.
In California, digital assets include social media accounts, email accounts, domain names, virtual currency, online banking accounts, and electronically stored photos and videos, among others. In today’s modern world, it is essential to account for our increasingly digital lives and determine who will have access to these assets upon death or incapacity.
How Do I Protect Digital Assets?
Make a List
Start by creating an inventory of your digital assets, including account names, usernames, passwords, PINs, and other access credentials. This is especially important for digital assets that do not offer succession planning, such as cryptocurrency.
To ensure your loved ones can access your digital assets, they must first know the assets exist and have the necessary access information. Once you have prepared this list, store it in a secure location. It should also be updated annually, such as when preparing your tax returns.
Name a Legacy Contact
You can often designate a specific person as your digital executor through the account provider. For example, companies like Facebook, Instagram, and Apple allow you to name a “legacy contact” who may access your account or data upon your death. However, not all digital platforms, such as cryptocurrency providers, offer this option.
Update Your Estate Plan
You should also consider updating your estate plan to include provisions for digital assets. These provisions can be incorporated into your trust, will, and durable power of attorney. Including them ensures your designated representative has the legal authority to access and distribute your digital assets according to your wishes.
It is important to meet periodically with a qualified estate planning attorney to ensure your estate plan remains current and aligned with evolving laws and technology.
Protecting Your Legacy is Our Priority
Your digital assets have tremendous sentimental and financial value. Let the experienced team at Brierton, Jones & Jones help you develop a strategic estate plan that keeps your legacy safe. We'll work closely with you to catalog your online accounts and holdings, assign trusted legacy contacts and executors, and integrate digital asset provisions into your estate planning documents. Contact us now!