In this guide
What Are Digital Assets?
Digital assets encompass a wide range of items, from social media profiles and email accounts to cryptocurrencies, online banking, digital photos, and domain names. Even digital music libraries and in-game purchases can hold financial or sentimental value. You can last will and testament with a state-specific template data-doorway-opt-inline here.
It's essential to identify what digital assets you own and their relative importance. Start by listing accounts, files, and online properties, noting any that have monetary or emotional significance. This inventory will form the foundation of your digital estate plan.
- Financial accounts: PayPal, Venmo, online banking, investment apps
- Cryptocurrency: Bitcoin, Ethereum, and other digital currencies
- Social media: Facebook, Instagram, Twitter, LinkedIn
- Email accounts: Gmail, Yahoo, Outlook
- Cloud storage: Google Drive, Dropbox, iCloud
- Digital media: Photos, videos, music, e-books
Legal Considerations for Digital Assets
Digital assets are subject to a patchwork of laws and service agreements. Under the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which many states have adopted, executors and trustees can manage digital assets if the decedent provided consent or if a court orders access.
However, without explicit instructions, your executor may face legal hurdles. Each online service provider has its own terms of service, and some may deny access even to family members. State laws vary, so it's crucial to understand the rules in your jurisdiction.
How to Include Digital Assets in Your Will
To ensure your digital assets are handled according to your wishes, you need to explicitly mention them in your will. Avoid listing passwords in the will itself, as it becomes public record upon probate. Instead, refer to a separate digital asset inventory or use a digital vault.
In your will, you can name a digital executor or give your primary executor authority to manage your digital assets. You can also specify beneficiaries for specific items, such as leaving your cryptocurrency to a family member or your photo library to a friend.
- Create a separate document listing all digital assets, usernames, and passwords, and store it securely (e.g., in a safe or password manager).
- Reference this document in your will, so your executor knows where to find it.
- Name a digital executor who is tech-savvy and trustworthy.
- Specify who should receive each type of digital asset, or provide general instructions for distribution.
- Consider using a 'digital executor' clause to grant additional powers to handle online accounts.
Handling Social Media and Email Accounts
Social media platforms have different policies for deceased users. Facebook allows you to designate a legacy contact who can manage your memorialized account, while Instagram offers similar options. Twitter and LinkedIn may require direct contact with the company to deactivate or transfer accounts.
Email accounts often contain sensitive information and can be used to reset passwords for other services. You may want to give your executor access to your primary email to manage your digital affairs. Some providers, like Google, offer an Inactive Account Manager that can share data with trusted contacts after a period of inactivity.
Cryptocurrency and Other Financial Digital Assets
Cryptocurrency is a unique challenge because access requires private keys, which are often stored in digital wallets. If you lose your keys, your assets are irretrievable. Plan ahead by storing keys securely and providing instructions for your executor.
In your will, you can bequeath your cryptocurrency to a specific beneficiary. However, consider the tax implications and the need for a trusted person to access the wallet. You might also use a multi-signature wallet or a trust to manage crypto for your heirs.
- Store private keys in a secure offline location, and let your executor know where.
- Consider leaving a 'crypto letter' with instructions, separate from your will.
- Use a hardware wallet for large holdings, and document the recovery phrase.
- Name a beneficiary for your crypto in your will, and ensure they know how to access it.
- Be aware of state laws regarding inheritance of digital assets, which may vary.
Practical Steps to Create Your Digital Estate Plan
Start by creating a comprehensive inventory of your digital assets. Use a spreadsheet or a digital asset management tool. For each asset, note the account name, login URL, and any instructions for access.
Decide what you want to happen to each asset: transfer, delete, or memorialize. Share your wishes with your executor and family. Update your will and other estate planning documents regularly, especially after major life changes or when you acquire new digital assets.
- Use a password manager to store credentials, and share the master password with your executor in a sealed envelope.
- Set up legacy features on Google, Facebook, and other platforms.
- Store your digital asset inventory in a safe deposit box or with your attorney.
- Review your plan annually and after significant digital purchases.
- Consult an estate planning attorney to ensure your will complies with state laws.