During estate planning, the focus is often on physical assets. People want to ensure that the appropriate people inherit the assets that have the most financial value or emotional significance.
However, testators (those making the will) also need to consider their digital resources. In an increasingly online world, many people have valuable electronic assets that represent either a financial investment or emotional value for their loved ones. What types of digital resources do people need to address in their estate plans?
1. Digital investments
Cryptocurrency and non-fungible tokens (NFTs), as well as domain names, are popular digital investments. People may acquire these resources with the intent to hold them for years and sell them when the market is strong. Loved ones may have a hard time tracking digital investments, which makes it crucial for testators to identify them and address them in an estate plan.
2. Digital storage services
Many people use cloud storage for their critical personal documents and even their digital photos. Some people even pay to convert their existing family photos to digital ones and to store them online. Ensuring that family members can access and take control of items stored digitally can be a key estate planning concern.
3. Social media profiles
When a social media user dies, major platforms tend to lock their accounts. Grieving families may have the option of memorializing the person who passed. To do so, they generally need prior permission established by the account holder. Addressing social media profiles in an estate plan can be a smart move.
Integrating digital assets into an estate plan can be an important step for both the testator and their loved ones. Those who take the time to draft a comprehensive estate plan can provide their families with the optimum level of support while giving themselves peace of mind.