Digital Estate Planning: Protecting Your Online Assets Beyond Your Lifetime

Hello, and welcome,

As we navigate deeper into the digital age, our lives are increasingly entwined with the online world—from social media accounts and email to digital photos, blogs, and financial accounts.

The question arises: What happens to these digital assets when we’re no longer here?

That’s where our guide, “Digital Estate Planning: Protecting Your Online Assets Beyond Your Lifetime,” comes into play.

Digital estate planning—the process of organizing and making arrangements for your digital assets after your death—is becoming an increasingly important part of modern estate planning.

This relatively new field addresses an essential need in our digital era, ensuring that our online assets are handled according to our wishes.

In this guide, we’ll delve into the key aspects of digital estate planning.

We’ll explore what it encompasses, why it’s important, and provide some practical tips to help you start the process.

Whether you’re a digital native or just starting to build your online presence, this guide will offer valuable insights to ensure your digital assets are well-managed in the future.

So, let’s dive in, and together, let’s demystify the process of protecting your online assets beyond your lifetime.

Understanding Digital Estate Planning

Definition and Importance

Digital estate planning refers to the process of including your online and digital assets in your estate plan.

This can involve assets like social media accounts, websites, domain names, email accounts, and subscription services, among others.

The importance of a digital estate plan lies in its ability to protect your digital legacy, assist your family in handling your assets, and prevent identity theft after you pass away.

Creating a digital estate plan can help ensure that your wishes are followed, and your assets are managed correctly.

This is particularly important because laws on digital estate planning continue to evolve, and without proper planning, it could be difficult or even impossible for your family to access the critical information they need when you pass away.

When preparing your digital estate plan, consider the following steps:

• Create an inventory of your digital assets
• Choose a digital executor
• Provide access to accounts and passwords
• Specify your wishes for each asset
• Keep your digital estate plan updated

Traditional Will vs. Digital Will

A traditional will typically addresses your physical assets, such as real estate, personal belongings, and financial accounts.

However, it may not cover your digital assets.

This is where a digital will comes in, as it specifically addresses your online accounts and digital properties.

A digital will includes information on how to handle your digital assets, such as transferring ownership, shutting down accounts, or archiving personal data.

The appointed digital executor is responsible for managing these assets according to your wishes.

Note, however, that a digital will should not replace your traditional will but should instead complement it.

As you plan your digital estate, remember that laws governing digital assets vary greatly, depending on the legislation in your jurisdiction.

Stay informed and consult with an attorney knowledgeable in estate planning – like us here at AVID Estates – to ensure that your digital estate plan is legally binding and compliant with current laws.

The Components of a Digital Estate Plan

Digital Assets

When creating a digital estate plan, you should start by identifying your digital assets. These assets can include online accounts, such as social media profiles, email accounts, and digital subscriptions.

Your digital assets may also contain banking and financial information, websites, and domain names, as well as your digital files, such as music, photos, and important documents stored in cloud storage platforms or personal devices.

Roles and Responsibilities

Next, it is crucial to designate the appropriate people to manage your digital estate.

This includes choosing a digital executor, who will have the responsibility to manage your digital assets according to your wishes. Your digital executor should be someone you trust, who is also knowledgeable about the digital world.

Additionally, consider involving a fiduciary, such as a trustee or a professional estate planning advisor, to ensure your digital estate plan is compliant with legal requirements and terms of service agreements for your online accounts.

Organizing Account Information

An essential part of a digital estate plan is organizing and cataloging your account information.

Some steps to achieve this include:

• Creating an inventory of your digital assets: Make a comprehensive list of your online accounts, including usernames, passwords, and relevant URLs.
• Stating your wishes for each asset: Clarify how you want each digital asset to be handled as part of your estate plan. For example, you might want to leave certain data or files to specific individuals or delete specific accounts.
• Storing your information securely: Keep your digital estate plan documents in a safe and accessible place. Ensure that your digital executor knows where to find the documents and provide any necessary login credentials or authorization.
• Regularly updating your plan: As you create new accounts or make changes to existing ones, it’s crucial to update your digital estate plan accordingly.

By following these guidelines, you will have a more organized and efficient digital estate plan that ensures your digital legacy is managed according to your wishes.

Process of Creating a Digital Estate Plan

Identifying and Listing Digital Assets

First, you need to identify and list all your digital assets. This can include social media accounts like Facebook and Google, email accounts, online banking, financial files, intellectual property rights, websites, domain names, and even cryptocurrency.

Besides these, also consider media files such as videos, photos, and documents stored on your computer, smartphone, hard drive, or even cloud storage services.

Don’t forget about any blogs, apps, or other digital content that you’ve created over the years.

Choosing a Digital Executor

It’s essential to designate a trusted individual as your digital executor. This person will be responsible for managing your digital assets after your death, in accordance with your wishes and any applicable laws.

They may need to work with an attorney or personal representative to ensure a smooth transfer of digital property.

Make sure you choose someone tech-savvy, trustworthy, and aware of privacy concerns related to your digital assets.

Providing Access to Relevant Parties

You must ensure your digital executor and other relevant parties (such as your power of attorney or personal representatives) can access your digital assets.

This can involve sharing passwords, security questions, and recovery codes for your important accounts, such as email, social media, online banking, and various websites.

Keep this information secure and up to date, perhaps by storing it in a safe place or leveraging a password manager app such as 1Password.

Addressing Privacy and Security Concerns

It’s crucial to consider the privacy and security concerns related to your digital assets.

Some accounts, like email or cloud storage, may contain sensitive information that needs to be handled with care.

However, the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) helps provide a framework for digital executors and other fiduciaries to access your accounts without violating privacy laws.

Make sure your digital estate plan includes instructions on how your digital executor should handle such concerns.

Maintaining and Updating the Plan

Finally, it’s vital to review and update your digital estate plan regularly.

Your digital assets may change over time – for example, you may create new accounts, update passwords, or acquire new digital content.

In addition, laws and regulations governing digital assets may evolve, so staying informed and ensuring compliance is essential.

Get into the habit of revisiting your digital estate plan periodically and making necessary updates to protect your digital legacy.

Dealing with Specific Platforms

Google Inactive Account Manager

As you plan your digital estate, setting up the Google Inactive Account Manager is important.

This tool allows you to decide what happens to your Google accounts, such as Gmail, Google Drive, and YouTube, after a specified period of inactivity.

You can choose to share your data with a trusted person or have it deleted.

Facebook Legacy Contact

For sentimental reasons, managing your Facebook account after your passing is essential. Designate a Facebook Legacy Contact to manage your account when you’re gone.

This person will be able to respond to friend requests, update your profile, and archive your Facebook content.

Instagram and Twitter Policies

Both Instagram and Twitter have their own policies regarding account management after the account holder passes away.

On Instagram, you can memorialize an account after submitting a request with proper documentation.

Twitter allows family members to request the removal of a deceased user’s account.

LinkedIn

Your LinkedIn account represents your professional image, and it’s vital to ensure it’s handled properly.

To close a LinkedIn account on behalf of a deceased user, a family member or authorized representative should submit a request providing specific information.

Microsoft

Microsoft offers a Next of Kin process to close a deceased user’s account and request their data.

This process involves submitting the necessary documents and adhering to their guidelines to gain access to or close accounts like Outlook and OneDrive.

Amazon

To manage a deceased user’s Amazon account, it’s best to contact Amazon’s customer service for assistance with the appropriate documentation.

Note that Amazon accounts might contain digital assets like Kindle books and music or hold financial data tied to subscriptions and payment methods.

Other Services

There are various other platforms to consider when planning your digital estate. For example, utilize a password manager to store your passwords and share them with your loved ones.

This makes it easier to access other online services, such as social media, email accounts, or even devices like tablets.

You should also consider using specialized digital estate planning services such as AVID Estates that assist with important personal documents, like estate plans and tax documents.

Tools and Resources for Digital Estate Planning

Password Managers

One important aspect of digital estate planning is managing your various usernames and passwords. Password managers like 1Password can help conveniently store and organize your login information.

By using a password manager, you can:

• Securely store all your online account logins and passwords
• Easily share access to selected accounts with your beneficiaries
• Generate unique, complex passwords for added security

Digital Will Services and Platforms

A digital will can help ensure your online assets are taken care of by specifying your wishes regarding your:

• Online banking accounts
• Social media profiles
• Emails

Preparing a digital will on your own can be challenging, so you may want to consider using digital estate planning platforms or consulting with legal advisors to ensure your documents are comprehensive and legally enforceable.

Backing Up and Storing Digital Assets

Properly backing up and storing your digital assets can make it easier for your beneficiaries to access important files and data after you’re gone.

Consider the following options for safely storing your digital assets:

• External hard drives: These portable storage devices can store large amounts of data and can be easily handed over to your beneficiaries.
• Cloud storage: Services such as Dropbox or Google Drive allow you to store files and data online that can be easily accessed and shared.
• Physical devices: Ensure your phones, tablets, and computers are properly backed up and stored to preserve their digital contents.

Remember, as you plan your digital estate, to prioritize the security of your confidential information and the practicality of access to your beneficiaries.

By utilizing these tools and resources, you can help protect and manage your digital assets for the future.

Legal and Ethical Considerations

Revised Uniform Fiduciary Access to Digital Assets Act

The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) is an essential component to consider when creating your digital estate plan.

This act aims to provide fiduciaries with access to digital assets while respecting the privacy of the user.

As you develop your digital estate plan, be sure to familiarize yourself with the RUFADAA and how it impacts the management of your digital assets after your death or incapacitation.

Data Privacy Regulations

Data privacy regulations play a crucial role in the legal landscape of digital estate planning.

These regulations, which can vary from country to country, govern how your personal information, such as shopping accounts and contact lists, is handled and protected.

To ensure compliance with these regulations, you should work with a knowledgeable professional to understand how data privacy laws affect your digital estate plan.

Unauthorized Access and Fraud Prevention

Unauthorized access to your digital assets poses a significant risk, making it necessary to take steps for fraud prevention in your digital estate planning.

Your digital will should be securely stored to prevent unauthorized access, which might lead to fraudulent activities or identity theft.

Consider using encrypted digital file cabinets to store digital wills, and traditional wills should be stored securely as well, preferably in a safe deposit box or with a trusted attorney.

In addition to securely storing your wills, make it a priority to address the probate process, as well as any legacy policies that may impact your digital estate.

Include clear instructions on how your executor should access your digital accounts, such as email, photo and video sharing, and social media platforms, in compliance with the relevant laws and regulations.

Remember to keep your digital estate plan up-to-date by assessing and making any necessary adjustments, considering changes in authorization management, technology, and law.