Have you ever stopped to consider how much of your life is spent online? In 1994, there were about 3,000 websites compared to the 1.1 billion 30 years later.
The internet has revolutionized the way we live, so it should also revolutionize the way we approach estate planning.
What is in a digital estate plan?
Social media, banking, investment accounts and email are just a few things you likely use daily that require a username and password (and some also require a third-party authenticator). If you were to die or become incapacitated, would anyone know how to access those accounts?
A digital estate plan provides instructions on how you want your digital assets managed and distributed after your death. These assets encompass a wide range of items, including digital currencies, documents, photographs and domain names. While every digital estate plan is unique to the owner, there are some key components that should be included:
- A list of all online accounts, such as social media, email, cloud storage, subscriptions, phone apps and bank and investment accounts, along with usernames and passwords.
- Clear instructions on how to access and manage your digital assets, including how to close accounts and transfer assets.
- What you would like done with your social media accounts. For example, Facebook allows loved ones to create a memorial page.
- A digital executor who understands technology and can manage your digital assets according to your instructions. This person will work with the traditional executor of your estate plan but their focus is specifically on your digital estate.
Once your digital estate plan is created, it’s essential to keep it updated when assets are added or deleted and login information changes. You will also want to ensure your plan complies with current federal and state laws.
