You may have more digital possessions than you realize. Learn what to include in your succession strategy and why it is necessary.
What you will discover:
What exactly is a digital asset?
How do I remember to include digital possessions in my Will?
What happens if I pass away without leaving a Will that contains my digital assets?
How do I incorporate digital possessions into my succession plan?
We have all got digital goods. In reality, if you own a smartphone, tablet, computer, or have an internet account, you have digital possessions. Even if these possessions have no monetary worth, they may have emotional value for you and your loved ones.
We have numerous tools in place to prepare for what occurs to our tangible possessions after we pass away. However, as we spend more time online, it is becoming increasingly essential to prepare for what occurs to our digital possessions. Here’s what you need to know about incorporating digital possessions into your succession strategy.
Table of Contents
What exactly is a digital asset?
Digital assets are a comparatively recent addition to the world of estate planning, but they have quickly become an essential component of our estate plans. Intangible objects and information saved virtually on devices such as laptops, cellphones, and USB files, or in the cloud, are referred to as digital assets.
Email addresses, such as Gmail.
Accounts on social media platforms such as Facebook.
PayPal is one example of an online payment account.
Online investing platforms, such as E*TRADE.
Domain names, webpages, and blogs are all examples of online properties.
Amazon accounts are examples of online commerce profiles.
World of Warcraft is an example of an online entertainment platform.
Cryptocurrencies, such as Bitcoin.
Dropbox is one example of a cloud storage account.
Digital collections and tracks, such as those available on Pandora or Spotify.
These digital assets may have emotional, functional, or monetary worth to you or your family and, as such, should be addressed in your succession plan alongside other assets you own.
How do I remember to include digital possessions in my Will?
Your digital possessions could be worth a lot to your relatives and acquaintances. This is why it is critical to remember to include them in your Will. However, not all of your digital possessions are transferable via your Will. Some must be handed down in alternative methods, while others cannot be passed down at all.
In general, any digital commodity that you own and can transmit should be included in your Will. This contains the following:
Funds collected in online bank accounts, PayPal accounts, and online shops such as Etsy and Amazon.
Cryptocurrencies, such as Bitcoin.
You own digital files such as songs, pictures, and movies.
Transferable rewards, such as frequent flier points and lodging loyalty schemes.
Some digital assets are non-transferable and thus cannot be handed down through your Will. Here are some examples:
Email addresses.
Accounts on social media.
Netflix, Amazon Prime, and Spotify are examples of subscription programs.
Apps for mobile phones.
These kinds of digital identities are typically not yours, but you have been granted a non-transferable permission to use them. In these situations, the service provider will usually have safeguards in place to enable an approved individual to stop, erase, retrieve data, or take other necessary actions after you have died.
What happens if I pass away without leaving a Will that contains my digital assets?
If you perish without a Will addressing your digital possessions, your administrator may find it challenging or impossible to:
Track down all of your internet possessions.
Access photographs, videos, and other confidential data saved in your web accounts, cell phone, laptops, and so on.
Close your social media profiles.
Access details required to complete your inheritance and divide your assets, which may be kept in places such as your email and financial accounts.
How do I incorporate digital possessions into my succession plan?
Planning for what happens to your tangible assets after you pass is necessary to ensure that your valuable belongings wind up in the right hands.
The same can be said for your digital possessions. Here are some suggestions for incorporating your digital possessions into your succession plan:
Make a list of your digital possessions. Make a notation of which assets will be distributed to your estate’s designated heirs.
Make a record, known as a Digital Asset Trust, that includes the following information:
URLs (website names).
Usernames.
Passwords.
Pin numbers.
Responses to security concerns.
Other details required to access your internet services.
Keep your Digital Assets Trust paper in a safe place. Then, either now or in the future, grant someone you trust access to the document so that they can recover your digital possessions if you perish or become disabled.
Consider writing a will if you do not already have one. Including a clause in your Will that grants someone access to your digital assets and provides directions for what to do with them after you die will ensure that your digital assets are not ignored or lost. It will also enable you to control how your digital goods are disseminated.
