Estate Planning and Digital Assets

As a Folsom attorney who specializes in estate planning, one asset that I commonly see clients forget, or not think about, is their digital assets. It is understandable, as digital assets are intangible and so intertwined with our day-to-day lives that we do not spend a lot of time thinking about them. However, in today’s digital age, it’s essential to include digital assets in your estate planning to ensure that your online accounts, electronic files, and online presence are managed according to your wishes after your passing or in the event of incapacity. Here are some key considerations for including digital assets in your estate plan:

1. Identify Your Digital Assets:
   • Start by making a comprehensive list of your digital assets, including:
     • Online financial accounts (banking, investments)
     • Email accounts
     • Social media profiles (Facebook, Twitter, LinkedIn)
     • Digital photos and videos
     • Cloud storage accounts (Google Drive, Dropbox)
     • Cryptocurrency holdings
     • Domain names and websites
     • Digital subscriptions (Netflix, Amazon Prime)
     • Personal and business documents stored electronically
2. Access Information:
   • Ensure that you have a record of login credentials (usernames and passwords) for each digital asset. Store this information securely, either in a password manager or a physical document stored in a safe place.
3. Appoint a Digital Executor:
   • Designate a digital executor in your will, living trust or other estate planning document. This person should be tech-savvy and responsible for managing your digital assets. Provide them with access to your list of digital assets and login credentials.
4. Specify Your Wishes:
   • In your will, living trust or other estate planning document, clearly outline your wishes regarding your digital assets. Indicate whether you want your digital files deleted, transferred to heirs, or managed in a specific way.
5. Online Account Providers:
   • Check the terms of service for each online platform and service provider. Some platforms have policies on how digital assets are handled after a user’s passing. Familiarize yourself with these policies and consider how they align with your wishes.
6. Digital Estate Planning Tools:
   • Some digital estate planning tools and services are available to help you organize and manage your digital assets. These tools can facilitate the secure storage of login information and instructions for your digital executor.
7. Legal Documents:
   • Work with an estate planning attorney to ensure that your will or living trust includes provisions for digital assets. California may have specific laws governing your particular digital assets, so this consultation will ensure compliance with local regulations.
8. Encryption and Security:
   • Consider encryption and security measures for sensitive digital assets. If you store sensitive financial or personal information digitally, ensure that your digital executor can access it securely.
9. Regular Updates:
   • Periodically review and update your list of digital assets and login information. Digital assets change over time, and new accounts or services may need to be added to your estate plan.
10. Communication with Loved Ones:
    • Inform your loved ones and the appointed digital executor about your digital estate plan, its location, and your wishes. Ensure that they know how to access this information when needed.
11. Backup Plans:
    • Have backup plans in place in case your digital executor is unable or unwilling to carry out their responsibilities. Choose alternate digital executors if necessary.

Conclusion

Including digital assets in your estate plan ensures that your online presence and electronic records are managed appropriately and securely in line with your wishes. Given the ever-evolving nature of technology and online services, it’s crucial to keep your digital estate plan up to date to reflect changes in your digital asset portfolio and your preferences. If you have any questions regarding your digital assets or are seeking an experienced estate planning lawyer in Folsom, please contact Thapar Law at 916-579-0605 or send us a message.