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Digital Assets and Estate Planning: What You Need to Know

Digital Assets and Estate Planning

Think about all the things you do online every day. You check your email, use social media, maybe manage your bank account or investments. All of these online activities create what we call “digital assets.” As our lives become more digital, it’s important to think about what happens to these assets when we’re gone. That’s where estate planning comes in.

What Are Digital Assets?

Digital assets are anything you own or use online. They can include:

  • Email accounts
  • Social media profiles (like Facebook, Instagram, or Twitter)
  • Online bank accounts
  • Cryptocurrency
  • Digital photos and videos
  • Online shopping accounts (like Amazon)
  • Streaming service accounts (like Netflix or Spotify)
  • Websites or blogs you own
  • Digital files stored in the cloud

Why Include Digital Assets in Your Estate Plan?

Including digital assets in your estate plan is important for several reasons:

  1. Protect Your Privacy: Some of your accounts might have personal information you don’t want others to see.
  2. Preserve Memories: Digital photos and videos are precious memories your family might want to keep.
  3. Manage Financial Accounts: Online bank accounts or investments need to be handled properly.
  4. Prevent Identity Theft: Unused accounts can be targets for identity thieves.
  5. Follow the Law: Some states have laws about what happens to digital assets after death.

How to Include Digital Assets in Your Estate Plan

Here are some steps to help you include digital assets in your estate plan:

  1. Make a List: Write down all your important online accounts and digital assets.
  2. Choose a Digital Executor: This is someone you trust to handle your digital assets after you’re gone.
  3. Provide Access: Write down usernames and passwords, but keep this information secure.
  4. Give Clear Instructions: Explain what you want done with each digital asset.
  5. Update Regularly: Review your digital asset plan yearly, as online accounts can change often.

Challenges with Digital Assets in Estate Planning

There are some tricky parts to planning for digital assets:

  • Terms of Service: Some online services have rules about what happens to accounts after death.
  • Privacy Laws: There are laws that can make it hard for others to access your accounts, even if you want them to.
  • Changing Technology: New types of digital assets are always popping up, so your plan needs to be flexible.

Tips for Protecting Your Digital Assets

Here are some helpful tips:

  1. Use a Password Manager: This can keep all your passwords in one safe place.
  2. Enable Legacy Contacts: Some social media platforms let you choose someone to manage your account if something happens to you.
  3. Back Up Important Files: Keep copies of important digital files somewhere safe.
  4. Be Clear About Your Wishes: Tell your family what you want done with your digital assets.
  5. Consider a Digital Asset Trust: This is a special kind of trust just for digital assets.

Work With Me

Planning for your digital assets might seem overwhelming, but it doesn’t have to be. As someone who’s helped many families with their estate plans, I know how important it is to get this right.

Your online life is a big part of who you are. Let’s make sure it’s protected and handled the way you want. I’m Robert Emmer, and I’m ready to help you create an estate plan that includes all parts of your life – both online and off.

Don’t wait to protect your digital world. Contact me today, and we’ll work together to make sure your digital assets are a secure part of your estate plan. It’s an important step in taking care of your whole life story, including the digital chapters. Let’s get started on safeguarding your digital legacy today!

Disclosure: Raymond James and his advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Robert Emmer and not necessarily those of Raymond James.