Allocating personal resources to specific beneficiaries is a key component of estate planning. People tend to focus on physical assets, including their homes and personal possessions.
In our increasingly digital world, people may also have digital resources to address. Modern estate plans generally need to include provisions for the digital assets of the deceased individual. How do people address their digital holdings in an estate plan?
By identifying their assets
There is an assortment of digital resources that people may need to address in their estate plans. Many individuals have personal social media accounts. They may have to arrange for someone else to take control of those accounts or risk their loved ones losing access to and control over their profiles after their passing.
Online photo repositories are another important resource. People may need to provide information to their loved ones about any digital storage that they have purchased so that their family members can download and save those photographs and other valuable family memorabilia.
Estate plans may also need to address digital bank accounts. People have begun banking with institutions that may not have physical locations. Those accounts may only send out digital statements. Without knowledge of the account and access to the decedent’s email, family members may not be able to access those accounts. Testators need to identify their digital financial resources or add transfer-on-death designations so that people can gain control of those assets without going through probate court.
There are also digital investments to consider. Non-fungible tokens, digital currencies and even web domains can be valuable resources that people can bequeath to specific beneficiaries when they die. Creating a comprehensive list of all digital assets is the key component of successful digital estate planning.
Arrange for the descent of digital assets
As previously mentioned, digital financial accounts often allow account holders to file transfer on debt or payable on deaf designations. Other digital resources may an acquire inclusion in a will. People can even potentially transfer their ownership interest to a trust as part of the estate planning process.
Providing clear instructions for what should happen to digital assets is an important aspect of estate planning. In some cases, people may want to designate an individual, such as their personal representative, as the party who maintains the memorialized pages left behind on social media after their passing.
Addressing digital resources in an estate plan can give people more complete control over their legacies. Those with social media profiles, digital assets and online accounts may need help integrating such resources into their estate plans.