Estate planning lets you decide what happens to your assets after you pass on. It ensures that your possessions go to the correct people and helps reduce conflict among family members over matters like inheritance. Because of your will’s importance, it should cover everything you own, including your digital assets.
What are digital assets?
Digital assets refer to any electronic file, document, and record generally accessible through a computer or mobile device. Here are some examples.
- Digital photos and videos
- Website domain names
- Blog content
- Digital wallet
- Social media accounts
- Non-fungible tokens (NFTs)
- Gaming avatars or items with real-world monetary value
When developing your estate plan, it helps to create a list of your digital assets along with their corresponding login credentials and keep this in a secure place. This way, your beneficiaries can access your digital assets when the need arises.
Why is including digital assets crucial?
Some digital assets are worth a lot, but excluding them from your will might diminish their value or prevent beneficiaries from being able to use them. For instance, your NFTs might be worth less if your heirs cannot access and trade them.
Moreover, you can instruct your executor to manage or delete your online accounts upon your passing. If you leave such accounts intact and unmanaged, unscrupulous entities might hack into them and use your personal information for identity theft and other crimes.
Planning what happens to your digital assets is critical but comes with several challenges. For instance, you should generally know which digital assets are transferrable to your beneficiaries. Lawyers, accountants, and other professionals specializing in estate planning can help you sort these matters out and ensure that all assets you leave behind are in order.