When most people think about estate planning, they think about their home, bank accounts, investments, and personal belongings. However, more and more of our lives now exist online.
From financial accounts and family photos to social media profiles and digital currencies, your digital presence may include valuable assets and important information your loved ones need access to.
Without a plan, your family may struggle to locate, access, or manage your digital accounts after you pass away.
Including digital assets in your estate plan helps ensure your online life is handled according to your wishes. A Tacoma, WA estate planning lawyer can help you incorporate digital assets into your estate plan, ensuring your online accounts, digital property, and important electronic records are managed and transferred according to your wishes.
What Are Digital Assets?
Digital assets include a wide range of electronic accounts, files, and information you create, store, or manage online.
Examples may include:
- Email accounts;
- Social media profiles;
- Online banking and investment accounts;
- Digital payment accounts;
- Cryptocurrency and digital wallets;
- Cloud storage;
- Photos and videos;
- Websites and domain names;
- Online businesses;
- Reward points or loyalty accounts; and
- Digital subscriptions.
While some digital assets have financial value, others carry significant sentimental value—such as years of family photos, messages, and memories.
Why Digital Assets Create Challenges
Unlike physical property, digital assets are not always easy for loved ones to find or access.
Your family may not know:
- Which accounts exist;
- Where important information is stored;
- How to access necessary files;
- Whether accounts contain financial value; or
- What you wanted done with your online presence.
Additionally, usernames and passwords alone do not always guarantee legal authority to access or manage an account.
Many online platforms have their own policies regarding what happens when an account owner passes away.
Creating an Inventory of Your Digital Assets
One of the most helpful steps you can take is creating an organized inventory of your digital life.
Your inventory may include:
- A list of important accounts;
- Where accounts are located;
- Instructions for accessing important information;
- Information about digital wallets or cryptocurrency;
- Locations of important files; and
- Your preferences for certain accounts.
This does not mean placing passwords directly into your Will, which can become part of the public record during probate.
Instead, your estate planning attorney can help you determine safer ways to organize and provide access to important information.
Choosing Someone to Manage Your Digital Assets
Just as you choose someone to manage your financial affairs, you should consider who you trust to handle your digital information.
Your chosen person may need to:
- Close accounts;
- Retrieve important documents;
- Preserve family photos;
- Manage online businesses;
- Access digital financial information; or
- Carry out your wishes regarding social media.
Selecting someone who is organized and comfortable with technology can make this process much easier.
What Happens to Social Media Accounts?
Many people do not think about what they want to happen to their online presence after they pass away.
Some families prefer to memorialize accounts so friends and loved ones can continue viewing memories. Others prefer accounts to be closed.
Different platforms have different rules, which is why documenting your preferences can help your loved ones know what you would have wanted.
Cryptocurrency and Digital Wealth Require Special Planning
Digital assets such as cryptocurrency require additional consideration.
Unlike traditional financial accounts, cryptocurrency may not have a bank, company, or institution that can help your family regain access.
If important access information is lost, those assets may become permanently unavailable.
Proper planning is essential to ensure digital wealth can be located, accessed, and transferred according to your wishes.
Include Digital Assets in Your Estate Plan
A comprehensive estate plan should address both traditional assets and your digital life.
This may include:
- Updating your Will or Trust;
- Providing appropriate authority for your fiduciaries;
- Organizing account information;
- Creating instructions for digital property; and
- Reviewing your plan as technology changes.
As our lives become increasingly digital, planning for these assets is becoming an essential part of modern estate planning.
Protecting Your Digital Legacy
Your online accounts tell part of your story. They may include financial resources, personal memories, creative work, and information your loved ones will need.
Taking time to organize your digital assets can reduce confusion and help ensure your wishes are respected.
At Eastside Estate Planning, we help individuals and families throughout Bellevue, Kirkland, and the greater Seattle area create comprehensive estate plans that reflect today’s digital world.
Whether you are creating your first estate plan or updating an existing one, including your digital assets is an important step in protecting your complete legacy.
Contact us today to schedule your 15-minute consultation.
