In today’s digital age, our lives are increasingly intertwined with technology, often leading to the accumulation of various digital assets. These assets, ranging from online financial accounts to social media profiles, hold both sentimental and monetary value.

However, without proper estate planning, these digital possessions can become inaccessible or lost upon one’s passing. This blog post outlines essential steps to ensure your digital assets are effectively managed and transferred according to your wishes.

Examples of digital assets

Digital assets encompass a broad spectrum of electronic possessions, including the following:

• Financial accounts: Online banking, investment portfolios, cryptocurrency wallets non-fungible tokens (NFTs), which are unique digital assets that you can buy, sell and trade, stored on a blockchain. NFTs represent assets such as digital games, music, art, videos and collectible items.
• Medical records: These are some of your most important digital assets
• Personal media: Photos, videos and documents stored on cloud services or personal devices
• Social media profiles: Accounts on platforms like Facebook, Instagram, LinkedIn and X (formerly Twitter)
• Subscriptions and memberships: Digital subscriptions to services such as Netflix, Amazon Prime or online publications
• Intellectual property: Domain names, blogs and other online content you’ve created

Balancing ease of access with privacy

Managing your digital assets requires thoughtful planning and the guidance of an estate-planning professional. Sorting through tangible assets is difficult enough when a loved one dies; it can be extremely time-consuming, frustrating and difficult for loved ones when someone also has a lot of digital assets but leaves no instructions about how to access them.

However, you want to balance the ability of your executor to access these assets easily with privacy. For example, you might want some information accessible while keeping your personal emails private. Or you might want to grant access to your business information but not your personal details. To accomplish this, you can grant your executor access to some digital accounts while excluding others, or you can select different people to receive access to different accounts.

Why it’s important to include digital assets in your estate plan

Incorporating digital assets into your estate plan is crucial for several reasons:

• Accessibility: Without proper documentation, your loved ones may struggle to locate or access your digital assets, leading to potential loss of valuable information or funds.
• Security: Proper planning helps protect your digital assets from unauthorized access or potential fraud after your passing.
• Preservation: These assets can help ensure that sentimental items, such as family photos or personal writings, are preserved for future generations.

Steps to incorporate digital assets into your estate plan

Here are six steps to help you get started.

1. Create a comprehensive inventory

Begin by listing all your digital assets, including the following:

• Account names and types, including online shopping sites, customer-loyalty programs and even gaming avatars
• URLs, web addresses and domain names you have registered
• Usernames and associated email addresses
• Passwords and security questions
• Tax software and documents, bookkeeping records, proprietary business software and client data

Include information for all your electronic devices. Store this inventory securely, such as in a password-protected document or a reputable digital vault, so your executor can access them easily.

2. Understand legal considerations

Familiarize yourself with the legal aspects of digital asset management:

• Terms of service agreements: Each digital platform has its own policies regarding account access and transferability after death. Review these terms to learn what is permissible.
• State laws: Legislation like the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) provides a framework for fiduciary access to digital assets, but its adoption and specifics can vary by state.

3. Incorporate digital assets into your legal documents

Just as you would any other assets, explicitly address digital assets in your estate-planning documents:

• Wills and trusts: Specify how digital assets should be handled and who should have access to them. Do not include passwords in your will, though, because it will become a public document upon your death.
• Powers of attorney: Grant trusted individuals the authority to manage your digital assets in case you become incapacitated.

Clearly outlining your wishes can help prevent legal challenges and ensure your digital assets are managed as intended.

4. Designate a digital executor

Appointing a digital executor — a person responsible for managing your digital assets after your death — can streamline the process of distributing them as you wish. This individual should be trustworthy and tech-savvy, capable of navigating various digital platforms. The legal recognition of digital executors varies by jurisdiction, so consult with an estate-planning attorney to ensure compliance with local laws.

5. Use online tools

Some platforms offer features to manage your account posthumously. Here are a few examples:

• Google’s Inactive Account Manager: Allows you to decide what happens to your account after a period of inactivity.
• Facebook’s Legacy Contact: Enables you to designate someone to manage your memorialized profile.
• LinkedIn does not have a legacy feature. However, if you are legally authorized to act on behalf of a deceased LinkedIn member, you can submit a request to have that person’s account closed or memorialized. If you are not authorized, you can still report the member as deceased, and LinkedIn will memorialize the profile.

Leveraging these tools can provide additional layers of control over your digital legacy.

6. Update your plan regularly

Digital assets and platforms evolve rapidly. Just as we review your financial portfolio regularly to and adjust it as needed, we recommend that you regularly review and update your digital estate plan. We want to make sure that new assets are included, outdated information is removed and your wishes are current.

Conclusion

As our digital footprints expand, integrating digital assets into estate planning becomes increasingly vital. By taking proactive steps — such as creating a detailed inventory, understanding legal considerations and updating your plan regularly — you can ensure that your digital legacy is preserved and managed according to your wishes. Consult with estate-planning professionals who can provide personalized guidance tailored to your unique digital-asset portfolio.

---

Any opinions are those of Randy Carver and not necessarily those of Raymond James. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.