Digital Assets and Estate Planning: What You Need to Know in 2023
Estate planning has always been a complex process, but with the rise of digital assets, it's becoming even more complicated. Digital assets can include anything from cryptocurrency and online bank accounts to social media and email accounts. These assets can have significant financial and sentimental value, but many people fail to include them in their estate plans, which can cause problems for their loved ones after they pass away. In this blog post, we'll explore the importance of including digital assets in your estate plan and provide some guidance on how to do so.
The Rise of Digital Assets
Digital assets have been on the rise for years, but the COVID-19 pandemic has accelerated their adoption. With more people working remotely and doing their shopping online, digital assets have become an increasingly important part of our lives. According to a survey by the Digital Legacy Association, the average person now has around 90 online accounts, and this number is expected to continue growing in the coming years.
Despite the growing importance of digital assets, many people don't realize that they need to include them in their estate plans. In fact, a survey by EstatePlanning.com found that only 25% of respondents had included their digital assets in their estate plans. This can cause significant problems for their loved ones after they pass away.
Why You Need to Include Digital Assets in Your Estate Plan
There are several reasons why it's important to include digital assets in your estate plan. First and foremost, digital assets can have significant financial value. For example, if you have invested in cryptocurrency, your digital assets could be worth a significant amount of money. If you fail to include these assets in your estate plan, your loved ones may not even be aware of their existence, let alone know how to access them.
In addition to their financial value, digital assets can also have significant sentimental value. For example, your social media accounts may contain important memories and messages that you want to pass down to your loved ones. Failing to include these assets in your estate plan can mean that these memories are lost forever.
Another reason to include digital assets in your estate plan is to ensure that your loved ones can access your accounts and information after you pass away. Without the proper access, they may not be able to carry out your wishes or take care of your affairs. This can cause significant stress and confusion for your loved ones during an already difficult time.
How to Include Digital Assets in Your Estate Plan
Now that we've established why it's important to include digital assets in your estate plan, let's explore how to do so. There are several steps you can take to ensure that your digital assets are included in your estate plan.
1. Take an Inventory of Your Digital Assets
The first step is to take an inventory of your digital assets. This should include all of your online accounts, including social media, email, and online banking. You should also include any digital assets that you own, such as cryptocurrency or digital music and movie collections.
2. Decide How You Want to Transfer Your Digital Assets
Once you have an inventory of your digital assets, you need to decide how you want to transfer them after you pass away. This may involve specifying in your will or trust who will inherit your digital assets and how they should be transferred. Alternatively, you may want to create a separate document that deals specifically with your digital assets.
3. Consider Privacy Concerns
When transferring digital assets, it's important to consider privacy concerns. You may not want your loved ones to have access to all of your online accounts or personal information. In these cases, you may want to specify which accounts your loved ones can access and which information should be kept
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