As we recognize Estate Planning Awareness Week, it’s the perfect time to review and update all aspects of your estate plan, including often-overlooked digital assets. Many people think estate planning only covers bank accounts, real estate, and personal property, but your online presence, cryptocurrency, and digital business records are increasingly important parts of your legacy. Failing to account for these digital assets can create confusion, loss of value, and unnecessary stress for your loved ones.
What Are Digital Assets and Why They Matter
Digital assets are commonly overlooked assets that play a crucial role in your estate plan and the legacy you leave behind at your death. It is all right if you did not consider these items when you first created your will or trust; such a mistake is surprisingly common and easy to correct.
Digital assets can include:
- Digital photos and videos saved on phones, cloud storage, or external drives
- Emails, financial documents, and business records stored digitally
- Cryptocurrency and nonfungible tokens (NFTs)
- Domain names (URLs)
- Social media accounts (Facebook, LinkedIn, X, TikTok, Instagram, Twitch)
- Content creation platforms (YouTube, blogs)
- E-commerce accounts (Shopify, Etsy, Amazon, ClickBank)
- Physical device backup and databases (medical records, cloud storage services)
Such digital assets often carry significant real-world value and, in some cases, generate substantial income. Examples include cryptocurrency wallets, domain names (URLs), monetized YouTube channels, influencer accounts, and digital business platforms. These assets may represent a meaningful portion of your estate, sometimes even its most valuable components.
You can no longer afford to adopt a wait-and-see approach. Whether or not you proactively plan, your legacy now includes more than just the monetary inheritance, family heirlooms, and personal property you intend to pass along. In today’s world, you must also consider and create a plan for your digital assets.
Three Essential Steps for Digital Asset Planning
Planning for your digital assets is a crucial part of digital estate planning, ensuring they’re protected, accessible, and passed on according to your wishes. Many people overlook online accounts, cryptocurrency, and digital business records when creating a will or trust, even though these assets can carry significant financial and personal value.
To help you safeguard your legacy, here are three essential steps for managing, transferring, and preserving your digital assets.
Inventory Your Digital Assets
Creating a detailed inventory of your digital assets is a critical step in digital estate planning. Make a list of every online account you use, including social media profiles, email accounts, cloud storage, and any digital business records. If you operate a business, include spreadsheets, client files, databases, and other digital documentation. This inventory not only supports your estate plan but also plays a key role in any business succession planning.
Any asset that exists online, in the cloud, or on a device should be documented and shared with your attorney and trusted decision-makers, such as your agent under a financial power of attorney, executor, personal representative, or successor trustee. A thorough inventory ensures someone can efficiently step in and manage your digital assets when necessary.
Designate a Digital Fiduciary or Cyber Successor
A digital fiduciary (sometimes called a cyber successor) is a trusted individual who can access and manage your online accounts and digital business assets if you’re incapacitated or after your death. Often, this person also serves in a traditional fiduciary role, such as trustee, personal representative, or agent under a power of attorney.
Access to digital assets is governed by both state law, such as the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), enacted in most states, and the terms of each platform. To facilitate smooth access, keep your account information secure and consider using platform tools such as Google Inactive Account Manager or Apple Digital Legacy.
Use the Right Tools to Protect and Transfer Your Digital Assets
Properly managing your digital estate may require additional legal tools, such as funding certain digital assets into a trust or including access provisions in your power of attorney. Our estate planning attorneys can help you determine the best strategies to protect and transfer your digital assets, select trusted fiduciaries, and ensure your beneficiaries can access important accounts when needed.
Because laws surrounding digital assets are constantly evolving, it’s important to review and update any previous planning to maintain compliance and preserve your legacy.
To keep these steps top of mind, download this handout of the 3 Steps to Take to Protect Your Digital Assets
Potential Pitfalls of Failing to Plan for Digital Assets
The worst thing you can do is nothing. Inaction could result in the loss of digital family photo albums, disruption of your business if you are incapacitated, or worse. If this process feels daunting or you are unsure where or how to start, call a Charlotte estate planning attorney today. We can help you identify, track, and protect your digital assets to give you peace of mind.
Take Action During Estate Planning Awareness Week
Estate Planning Awareness Week is the perfect reminder to review and update your estate plan, including your digital assets. Protecting your online accounts, cryptocurrency, domain names, and digital business platforms is essential to safeguarding your legacy. With the right plan in place, you can give yourself peace of mind and prevent unnecessary complications for your family and beneficiaries.
Contact Charlotte Estate Planning Today
Don’t leave your digital legacy to chance. Charlotte Estate Planning’s experienced attorneys can help you identify, protect, and transfer your digital assets, select trusted fiduciaries, and ensure your estate plan reflects your current wishes. Schedule a consultation today during Estate Planning Awareness Week to secure your legacy and protect your digital assets for the future.
Contact our team today at (704) 766-8836 or by filling out our online contact form.
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