Digital assets have become a significant part of modern life, yet many people overlook them during estate planning. These assets include everything from email accounts and cloud storage to cryptocurrency and online businesses. Without proper planning, your loved ones could struggle to access or manage them.
A digital estate plan allows you to maintain control over what happens to your online presence and digital property. It also reduces stress for those left behind. Here are four important steps to prepare a valid and organized digital estate plan.
1. Inventory your digital assets
Start by identifying and documenting all your digital accounts and assets. These may include email addresses, cloud storage, bank and investment accounts, digital wallets, websites, domain names and subscriptions. Make a list of usernames, passwords and security features such as two-factor authentication. Also note where the data is stored and which devices are linked.
2. Write clear instructions for each asset
Once your inventory is complete, decide how you want each item handled. You may want some accounts deleted, others transferred and sensitive files protected or destroyed. Specify who should access each asset and what they are permitted to do. These instructions should be as detailed and easy to follow as possible.
3. Designate a digital fiduciary
Choose a responsible person to carry out your digital wishes. This individual should be familiar with technology and capable of managing sensitive data securely. You may also want to appoint a backup. Be sure to inform your chosen person and provide access to the necessary instructions and login information.
4. Store your plan securely and review it regularly
Your digital estate plan should be stored in a secure location such as a password manager, encrypted digital vault or locked file. Avoid including sensitive details in your traditional will, as it becomes a public record. Review your digital estate plan every few years to reflect changes in accounts, assets or preferences.
As estate planning evolves to include digital property, organizing these assets is essential. Including them in your overall estate plan offers peace of mind and prevents future complications. Legal guidance can be helpful when creating a secure and complete plan.