Accounting For Digital Assets In Estate Plans

Despite the ever-expanding online presence in our daily lives, many people forget to factor in their digital assets when creating their estate plan. Making a plan to help your loved ones access, disperse and close out your digital assets is as important as creating an estate plan for your traditional assets. Here are some key items to include in your Estate Plan Digital Assets section:

Create a Digital Asset Inventory

Start by making a comprehensive list of your digital assets, including:

• Cryptocurrency accounts
• Online bank accounts and payment platforms
• Investment accounts
• Email accounts
• Social media profiles
• Digital media libraries (photos, videos, music, e-books)
• Cloud storage accounts
• Domain names
• Online gaming accounts
• Loyalty programs and rewards

For each asset, document account names, URLs, usernames, and associated email addresses.

Choose a Digital Executor

Select a tech-savvy and reliable individual to serve as your digital executor. This person will be responsible for managing your digital assets according to your wishes after your death.

Provide Access Instructions

Create clear instructions for accessing your digital assets:

• Document login credentials and security keys
• Consider using a secure password manager
• Store this information securely, either in an encrypted digital service or a physical safe

Update Legal Documents

Work with an estate planning attorney to update your legal documents:

• Will: Include specific instructions for digital assets
• Durable Power of Attorney: Grant authority to manage digital assets
• Trusts: Consider creating a digital asset trust for more control and privacy

If you do not have an estate planning attorney, please get in touch with your iWealth Advisor to receive a recommendation of an estate planning attorney with whom we have good ongoing working relationships.

Use Online Tools

Take advantage of legacy management tools offered by platforms like Google’s Inactive Account Manager and Facebook’s Legacy Contact.

Create a Digital Asset Memo

Consider creating a separate Digital Asset Memo that contains detailed information and instructions for your digital executor. This can be updated more easily than a will and stored with your attorney or in a safety deposit box.

Ensure Legal Compliance

Familiarize yourself with relevant laws, such as State Fiduciary Access to Digital Assets Act specific to your state, which provides fiduciaries with the right to access digital assets.

By taking these steps, you can properly account for your digital assets in your estate plan, protecting your online legacy and preventing potential legal complications for your heirs. If our iWealth Advisors can be of help in answering questions, please contact us.