ARTICLE: Protecting Your Digital Assets in an Estate Plan: What You Need to Know

Protecting Your Digital Assets in an Estate Plan: What You Need to Know

In today’s digital age, our lives are increasingly managed and stored online. From social media accounts to financial information, photos, documents, and even cryptocurrencies, these digital assets are a significant part of our lives. Yet, many people overlook these valuable assets when creating their estate plans.

What Are Digital Assets?

Digital assets include any online accounts, files, and digital property that hold personal, sentimental, or financial value. This might include:

  • Social media profiles (Facebook, Instagram, LinkedIn, etc.)
  • Cloud storage accounts (Google Drive, Dropbox, etc.)
  • Financial accounts (banking, investment, and cryptocurrency wallets)
  • Email accounts
  • Online businesses (Etsy shops, websites, blogs)
  • Online subscriptions (streaming services, music libraries)

When you pass away or become incapacitated, it’s crucial that your loved ones have access to and can manage these accounts, especially if they contain important documents or financial resources.

Why You Need to Include Digital Assets in Your Estate Plan

If your digital assets aren’t covered in your estate plan, your family may struggle to locate or access them. Many companies have privacy policies that may prevent your loved ones from accessing accounts without explicit legal permission, potentially leaving important information locked away. Planning ahead ensures that your digital life is properly managed, your wishes are respected, and the transition for your family is smooth.

Steps to Protect Your Digital Assets

  1. Create a Digital Asset Inventory

Start by making a list of all your digital accounts and assets. Include usernames, passwords, and any relevant information about access. This document should be stored securely, as it contains sensitive information.

  1. Grant Your Executor Authority Over Digital Assets

In New York, you can give your existing executor, trustee, or agent under a power of attorney the authority to manage your digital assets. Without clear authorization in your estate plan, it can be tough for loved ones to access and handle your digital accounts after you’re gone, so make sure this is clearly outlined.

  1. Include Digital Assets in Your Will or Trust

Be sure to include instructions for handling your digital assets in your estate plan. This can be done through a will or trust that outlines who should have access and what they should do with these accounts.

  1. Consider Online Tools for Account Management

Some platforms offer features that allow you to designate what happens to your accounts after you pass away. For example, Facebook lets users set up a legacy contact to manage their profile.

Don’t Leave Your Digital Legacy to Chance

Your digital life is a valuable part of your overall estate, and failing to plan for these assets can create complications for your family. By including digital assets in your estate plan, you ensure that your online accounts and files are managed in accordance with your wishes.

Ensuring that your digital assets are properly accounted for can be complex, especially with rapidly changing laws and technology. Reach out to Roth Elder Law who can help you create a comprehensive plan that covers both your traditional and digital assets. Don’t leave your loved ones with the burden of navigating digital accounts—schedule a consultation today to protect your legacy. Call our office at 607-962-6162 or fill out our online intake form, and we’ll get back to you shortly.

Contact Us Today

We at Roth Elder Law, PLLC, believe in providing services in a way that clients can easily understand and meaningfully participate in designing and maintaining their estate plan for their loved ones, as well as be assured that their plan will be administered according to their wishes.