Including Digital Assets in an Estate Plan
More and more, people are living out their lives online. From social networking to banking to running a business, the digital world is a centerpoint of modern life.
When creating an estate plan to protect your and your family’s future, it is important to take digital assets into account. The phrase “digital assets” refers to the numerous online accounts each of us have, and the corresponding assets they allow us to access and manage (for example: an online account with your bank allows you to manage your money). The executor of your will will need to be able to access your online life after you pass away or if you should become inapacitated; you don’t want to just leave these accounts be as they often contain highly sensitive personal information.
At Margerie Law, I help individuals and families create a plan to secure their future. While each estate plan looks different depending on the needs and desires of the client, nearly all of my clients have some type of digital presence that should be incorporated into their plan. Read on for more information about incorporating digital assets into your estate plan.
What are digital assets?
Digital assets are any online accounts or platforms where your personal information is stored.
These include the following:
- Digital devices, such as computers, laptops, tablets, hard drives, and smartphones and corresponding sign-ins
- Social media sites
- Email accounts
- PayPal, Venmo, or other payment accounts
- Online banking accounts, credit card accounts, brokerage accounts, and any other account that links back to your bank account or credit card
- Online 401k or other retirement account interfaces
- Home, auto, pet, and other insurance accounts
- Utility payment management accounts
- Healthcare management accounts
- Online shopping accounts, like Amazon, Etsy, etc.
- Streaming services, like Netflix or Hulu
- Online storage/cloud accounts where you keep documents, photo, or video
- Tax preparation accounts and other financial programs like Quicken
- Websites with domain names you own and operate
- School or work user profiles
- Rideshare accounts
- …the list goes on.
How should I include digital assets in my estate plan?
When you work with an experienced estate planning attorney, they will give you concrete steps for how to include your digital assets in an estate plan. Here at Margerie, I advise my clients to do the following:
- Make a list of all digital assets (see examples above) and include a short description of the asset, username/login, password, answers to any security questions, and anyone else who has access to that account (if applicable). When you change a password for an account, be sure to update this document.
- Decide how you would want each digital asset handled should you pass away or become incapacitated. Do you have the option to name a beneficiary for your bank or insurance account on your online profile? Who should receive your stored family pictures? Do you have a business partner who should manage a business account? Do other people have access to particular accounts? All of this should be documented for the benefit of your executor as part of your estate plan.
- Store all of this information in a safe place. Options include giving it to your attorney to keep, putting hard copies in a safe, or using a high-security online storage system.
- Decide if your existing executor has the wherewithal to manage digital assets. Is this a tech-savvy person who can navigate potential roadblocks to accessing your accounts with ease? Or is this someone who still uses a flip phone? If the latter is true, you may consider naming a “digital executor” whose specific job is to handle your digital assets when you pass away or in the event of your incapacitation.
There is a lot to think about when it comes to estate planning, and everyone’s plan looks different. You may have a special needs child you want to plan for, or are interested in helping your beneficiaries avoid probate, or have highly specific instructions for when, where, and how your assets are managed and distributed after your death. You don’t have to make all of these decisions alone; at Margerie Law, I help families in Milwaukee, Waukesha, Menomonee Falls, Brookfield and surrounding communities create tailored estate plans that protect their future. Interested in getting started? Give Margerie Law a call today.
