As our lives become more deeply integrated with digital platforms, the concept of a digital legacy has gained unprecedented significance. Our online presence, which includes social media accounts, online banking, and digital assets, is substantial. However, many people neglect to include digital assets in their estate planning.
Here, we’ll explore what’s included in your digital legacy. Then, we’ll explain why safeguarding your digital legacy is essential and how to incorporate it into your estate plan.
What’s Included In Your Digital Legacy?
A digital legacy consists of all the digital information you leave behind when you pass away. This includes things like:
- Social Media Accounts: Facebook, Instagram, X, LinkedIn, TikTok, Snapchat, etc.
- Email Accounts: Gmail, Yahoo, Outlook, etc.
- Financial Accounts: Online banking, investment accounts, cryptocurrency wallets, PayPal, health savings accounts, etc.
- Subscriptions and Memberships: Streaming services, online clubs, digital magazines, etc.
- Digital Files: Photos, videos, documents stored in cloud services like Google Drive, Dropbox, iCloud, etc.
- Intellectual Property: Blogs, websites, digital art, eBooks, etc.
4 Reasons Why Protecting Your Digital Legacy is Essential
1. Identity Theft Prevention
Inactive digital accounts don’t simply vanish when you pass away. They live on and are often prime targets for identity thieves. By creating a plan for your digital accounts in advance, it’s often possible to prevent identity fraud later on.
2. Your Wishes Can be Fulfilled
One of the key reasons to create an estate plan in the first place is to ensure that your wishes are honored after you pass away. While most people consider this in terms of physical assets, it’s also important to have a plan for your digital accounts, files, and assets. For example, you can choose what happens to your social media accounts. They could be memorialized, deleted completely, or passed on to a trusted friend or loved one. The choice is yours if you plan ahead.
3. Preservation of Access to Valuable Information
Many people store important documents, photos, videos, and other memories online. Proper digital estate planning ensures that your loved ones can access and preserve these valuable assets.
4. Financial Asset Management
With the rise of digital financial assets like cryptocurrency, it’s crucial to include them in your estate planning. This will ensure they are managed according to your wishes and can benefit your heirs.
How to Protect Your Digital Legacy
1. Document All of Your Digital Assets
Make a comprehensive list of all your digital accounts and assets. This should also include the information required to log into these accounts – websites, usernames, passwords, security questions, etc. This list will be an essential document for the individual you choose to manage your digital legacy.
2. Decide What Will Happen to Each Asset After You Die
Think about what you want to happen to each of your digital assets. For social media accounts, for example, choose whether you want them memorialized, deleted, or passed on to a loved one. For financial accounts, make sure that beneficiaries are designated where applicable.
3. Appoint a Digital Executor
Designate someone you trust to handle your digital legacy. This person will be responsible for managing your digital assets according to your wishes. Ensure they have the necessary information and legal authority to act on your behalf.
4. Include Digital Assets in Your Will
Clearly outline your wishes for your digital assets in your will. This includes instructions for accessing, managing, and distributing these assets. Be specific to avoid any confusion or legal complications.
5. Utilize Digital Estate Planning Tools
There are a variety of digital estate planning tools and services that can help you safely and efficiently manage your digital legacy. These platforms can securely store your information and ensure it is accessible to your designated executor after you pass away.
6. Update Your Digital Estate Plan as Needed
While you’re still living, new technology will emerge and you will likely acquire new digital assets. As this happens, it’s important to regularly update your digital estate plan. This will ensure everything is included and will be managed according to your wishes.
How Can an Estate Planning Attorney Help Protect Your Digital Legacy?
If you read through the steps above and felt overwhelmed, don’t worry! Estate planning can be an intricate process and ideally, should never be done on your own. Working with an experienced estate planning attorney can give you peace of mind and help you create a comprehensive plan to manage your digital legacy. In addition to helping you navigate the important steps already mentioned, they can aid in addressing legal considerations that are unique to specific assets.
Don’t leave the future of your digital assets to chance! Instead, contact us. Our NY and NJ estate planning attorneys can help you get started on designing a detailed estate plan that not only honors your wishes but also benefits your loved ones.
