Estate planning has evolved beyond physical assets and financial accounts. Digital assets, including social media accounts, digital currencies, and online identities, have become integral parts of our lives. Yet, many overlook these assets in their estate plans, leading to complications and confusion for heirs. Understanding elder law and digital assets planning is important in ensuring that all aspects of your estate are managed according to your wishes after you pass away.

Including Digital Assets in Your Estate Planning

Digital assets encompass a range of online and digital accounts and properties, from email and social media accounts to digital music libraries, eBooks, and cryptocurrency investments. Over the past decade, our lives have become increasingly digital, and these assets can hold significant sentimental and monetary value. Elder law and digital assets planning ensures that your digital life is organized, accessible, and distributable according to your wishes, preventing potential losses and providing a smoother transition for your loved ones.

Understanding Elder Law and Digital Assets Planning

Elder law is a legal practice field focusing on issues affecting aging populations. This includes estate planning, where digital assets have become a critical component. The key to successful estate planning in the context of elder law and digital assets is understanding what digital assets you own, determining their value, and deciding how they should be handled after your death.

  • Identifying Your Digital Assets

The first step in planning for your digital afterlife is to take inventory of your digital assets. This includes everything from your social media profiles and email accounts to digital wallets and online banking information. Don’t forget about online subscriptions, domain names, and any digital rights or licenses you may hold.

  • Valuing Your Digital Assets

Once you’ve identified your digital assets, assess their value. Some assets, like cryptocurrencies, may have a clear monetary value, while others, like photo albums or social media accounts, hold sentimental value. Understanding the worth of these assets can guide you in deciding how they should be managed.

Including Digital Assets in Your Estate Plan

To ensure your digital assets are handled according to your wishes, you must ensure that they are included in your estate planning. This involves several key steps:

  • Designate a Digital Executor: Choose someone who is tech-savvy and trustworthy to manage your digital assets. The person you choose as your Digital Executor will be responsible for executing your wishes regarding your digital estate.
  • Provide Access Instructions: For your digital executor to manage your digital assets, they will need access. This means providing them with the necessary passwords or instructions on accessing your digital assets. Consider using a secure digital vault or a password manager to store this information, and confirm your digital executor knows how to access it.
  • Outline Your Wishes: Clearly state how each digital asset should be handled. For instance, you may want certain social media profiles to be memorialized or deleted or digital currencies to be distributed among heirs.
  • Legal Considerations: There are also laws that must be considered, which is why it is recommended to consult with an elder law attorney to ensure your estate plan complies with current state and federal laws and regulations. Laws regarding digital assets can vary by jurisdiction and may impact how your digital assets are treated after your death.

The Future of Elder Law and Digital Assets Planning

As technology advances, the importance of including digital assets in estate planning will only grow. Elder law and digital assets planning is evolving, with laws and best practices continually adapting to new digital realities. Staying informed and consulting with legal professionals knowledgeable in elder law and digital assets is crucial for ensuring your digital afterlife is handled as you wish.

As our lives become more intertwined with the digital world, planning for managing digital assets after our passing has become an essential part of estate planning. By taking the necessary steps to include digital assets in your estate plan, they will be managed according to your wishes. Elder law and digital assets planning is about safeguarding financial interests and preserving your digital legacy for future generations. If your current estate plan does not include your digital assets, or if you wish to get started on an estate plan, the elder law team at Rothkoff Law Group can guide you through the entire process, from setting up or revising your current plan to collecting assets, paying expenses, filing appropriate inheritance, estate tax returns, and ultimately settling the estate. Learn more about the estate planning process here or call us today.