The Importance of Estate Planning in the Digital Age

In today’s modern age, estate planning requires a new approach that goes beyond traditional assets to encompass our digital assets too. Whether it’s managing cryptocurrencies, preserving digital photo libraries, or ensuring access to social media accounts, the financial and sentimental value of digital assets should also be factored into an individual’s estate plans to ensure all aspects of their legacy endure according to their wishes after they pass.

In this article, we will explore the importance of estate planning in the digital age, and outline some of the steps individuals can take to ensure this aspect of their legacy is properly managed and protected.

Why Protect Digital Assets?

Without including digital assets into an estate plan, they risk being inaccessible or lost to loved ones after an individual’s passing. By identifying, organizing and safeguarding these assets, individuals can ensure the wealth of information contained within them is protected and transferred according to their wishes.

Proper estate planning also protects against the risk of digital assets being stolen or vulnerable to unauthorized access. This could lead to potential data breaches and financial loss, especially in the case of  cryptocurrencies or intellectual property. By integrating digital assets into an estate plan, these risks can be mitigated and ownership passed into the correct hands. For further information about protecting your digital assets, Contact the Dorsch Law Firm today, an asset protection attorney.

Creating a Digital Estate Plan

Individuals can take the following steps to ensure the proper management of their digital assets after they pass.

• Take inventory: Take an inventory of all digital assets, making note of all passwords and login instructions required to access and manage them. This information should be kept updated, securely stored and shared only with trusted individuals who are assigned to handle the estate.

• Appoint a digital executor: Individuals should select a digital executor who is capable of managing their digital assets after they pass. This should be someone who is technologically competent and able to navigate the requirements of digital platforms and accounts. This should also be someone who is trustworthy and willing to fulfill the duties assigned to them according to the individual’s wishes in their estate plan.

• Legal document: The management, transfer and distribution of digital assets should be legally documented in an individual’s estate plans along with any specific instructions or conditions for each asset. This can be done by updating their current will with an addendum or by creating a separate digital will which explicitly addresses their digital assets. This legally binding document should also name the beneficiaries and empower the digital executor to act on their behalf.
• Review and update: A digital estate plan should be regularly reviewed and updated to include all digital assets and any specific instructions in relation to them. All login credentials and passwords should also be kept up- to-date to ensure digital information and accounts remain accessible.

Digital assets present another valuable medium of wealth and personal value which should be protected and passed on. By following the steps outlined individuals can safeguard these important assets and ensure their transfer to designated beneficiaries after their passing.