Do you know what your digital footprint looks like? Chances are that it’s more significant than you think. For instance, you likely have social media accounts, online bank accounts, digital assets and other important information. If you are planning your estate and thinking about your future and legacy, addressing these digital assets in your estate plan will be essential.
How to protect your digital assets
You can start by making a list of all your digital assets. Don’t forget about digital currencies, valuable domains, non-fungible tokens (NFTs) and any other online properties you own. Here are some options for including these assets in your estate plan:
- Specify in your will: You can specify who will manage and receive your digital assets in your will. Ensure you include all necessary details.
- Name a digital executor to manage your online accounts: Designate someone reliable to access your accounts, either through power of attorney or specific platform settings. This person could be someone like a trustee, estate administrator or even a best friend.
- Establish a trust, like a digital asset protection trust: Trusts can provide better management and security for these assets.
These provisions make it easier for someone you trust to manage your digital assets according to your wishes.
Preventing access headaches for your loved ones
Executors can face significant obstacles in accessing digital accounts. Think lost passwords, complex security questions,- and platform-specific policies. Some options to consider to prevent these include:
- Securely storing login information: Store usernames and passwords in a password manager or encrypted document. Inform your executor about its location and how to access it.
- Creating a separate, secure document: Keep information like login credentials and security questions and answers stored in a safe place with your will, power of attorney and other estate planning documents.
- Document everything: Create a detailed inventory of your digital assets and update this inventory regularly.
Clear instructions and easy access can prevent unnecessary frustration and legal battles.
Legal implications of transferring digital ownership
In Minnesota, as in many other states, the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) governs how digital assets are handled after death. You can discuss with an attorney how state and federal laws and individual platform policies intersect with your wishes.
Digital assets require real attention in your estate plan. By planning ahead, you protect your digital presence just as you would any other valuable asset.