Digital Assets in Your Will: What Happens to Your Online Life After You Pass Away?

The Growing Importance of Digital Assets in Estate Planning

In today’s digital age, our online lives have become an integral part of who we are and what we own. From social media accounts and online banking to cryptocurrency and cloud-based storage, these digital assets hold significant personal, sentimental, and even financial value. Just as you plan for the distribution of your physical possessions, it’s equally important to consider what will happen to your digital life after you pass away. Ignoring this aspect of estate planning can lead to confusion, loss of access, and even disputes among your loved ones.

Many people don’t realize the extent of their digital assets or that these assets are not automatically handled after death. Proper planning is crucial to ensure your digital accounts and online properties are managed according to your wishes.

What Are Digital Assets?

Digital assets are any online accounts, information, or data stored electronically. They can include:

• Social Media Accounts: Facebook, Instagram, Twitter, LinkedIn, and more. These often hold personal memories and connections.
• Email Accounts: Gmail, Yahoo, Outlook, and other email providers, which may contain important information and documentation.
• Online Banking and Financial Accounts: Online accounts that hold digital funds and other financial assets.
• Cryptocurrency: Bitcoin, Ethereum, and other cryptocurrencies. It’s imperative to ensure the access keys are protected and properly handled.
• Cloud Storage: Dropbox, Google Drive, iCloud, and other cloud storage services containing photos, documents, and other important data.
• Online Gaming Accounts: Game accounts that may have significant sentimental and even financial value.
• Domain Names and Websites: Personal websites or blogs that you may own.
• Online Shopping Accounts: Shopping accounts with stored credit card information or rewards points that may have value.

These digital assets may have significant monetary, personal, or sentimental value and should be included in your estate planning strategy.

Why Include Digital Assets in Your Will?

Failing to address your digital assets in your will can have several consequences:

• Loss of Access: Loved ones may be unable to access important information, memories, or financial assets if they do not know how to access them.
• Missed Financial Assets: Cryptocurrencies and online accounts may be lost or forgotten if the necessary access information is not available.
• Privacy Concerns: Unmanaged accounts can be vulnerable to fraud or identity theft if not properly handled.
• Legal Issues: Disputes may arise if beneficiaries cannot access or manage digital accounts and assets.
• Missed Opportunities: Assets with sentimental value or financial gain may be lost forever.

How to Plan for Your Digital Assets in Your Will

Here’s how you can include digital assets in your will and ensure they are managed as you intend:

• Create a Digital Inventory: Make a detailed list of your digital assets, including usernames, passwords, and instructions for accessing each account. This document should be kept in a secure location and updated regularly. Do not include these in your will, as it is a public document, which is generally accessible.
• Choose a Digital Executor: Designate someone you trust to manage your digital assets. This person should be technically savvy and comfortable with the responsibility, or you can give detailed instructions on how to handle each specific account.
• Include Specific Instructions: In your will, clearly state who will have access to your digital assets, what you want to be done with them (e.g., deleting social media accounts, transferring ownership, or managing financial accounts), and how you want them to be handled.
• Consider a Digital Assets Letter of Instruction: This document complements your will and provides detailed instructions for your digital executor to manage your digital assets, and it can be kept private.
• Use Password Management Tools: Use a password manager to store your passwords securely, and ensure your digital executor has access to it.

How Wills.com Can Help You Plan for Your Digital Legacy

Wills.com provides all of the tools needed to incorporate digital assets into your overall estate plan, including:

• Guidance on Digital Asset Planning: The Wills.com platform provides instructions on how to incorporate digital assets into your overall estate plan, guiding you through the process step-by-step.
• Customizable Will Templates: The online will templates are designed to incorporate instructions for your digital assets, allowing you to be specific and intentional about your wishes for each specific account.
• Secure Document Storage: Wills.com provides secure online storage for all of your important estate planning documents, and these documents are always accessible by you when you need to review or update them.
• Posthumous Delivery Instructions: Wills.com also provides instructions for how to manage your digital assets to your beneficiaries and executors.

Conclusion

Your online life is an essential part of your overall legacy and needs to be planned for in your overall estate plan. By taking a proactive approach, you can ensure that your digital assets are protected and managed according to your wishes, avoiding any hardship for your loved ones. Use Wills.com to ensure that you are properly planning for all of your needs, not just the financial and tangible ones.