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Planning for the future involves not only creating a physical estate plan but also a digital one. With most aspects of life now handled online, from social media to banking, a digital estate plan has never been more crucial. This guide will walk you through the essential steps in managing your digital assets effectively and ensuring they are taken care of after you’re gone.
Understanding What Constitutes a Digital Estate
A digital estate encompasses all your digital possessions. These can range from your social media accounts, emails, and digital photos to online banking, PayPal, cryptocurrency, and even your iTunes library. It also includes domain names or blogs that you may own as well as any online businesses or e-Commerce stores.
Taking Inventory of Your Digital Assets
The first step in creating your digital estate plan is to take inventory of your digital assets. Start by making a list that includes:
- Hardware: smartphones, computers, flash drives, or anything else that can store data.
- Online Accounts – Social networks, email accounts, streaming services, online shopping accounts, etc.
- Financial Accounts – Banks, retirement funds, lender accounts, investments, cryptocurrency, etc.
- Domain names and intellectual property.
- Any other digital assets that may be of importance.
Documenting Username and Passwords
Once you have your inventory complete, the next step is to make sure you have a way of accessing these accounts when needed. It would be best if you kept a record of login details such as usernames or email addresses, passwords, and security question answers for all your accounts. There are several ways to securely store such sensitive information, and one reliable way is to use password management software.
Deciding What Should Happen to Your Digital Assets
After documenting access to your digital assets, you must decide what should happen to each asset. For social media accounts, you might want to designate them for memorialization or deletion. Imagine your photographs stored online; you might want them downloaded and given to specific family members. Similarly, financial accounts might need to be closed or transferred.
Appointing A Digital Executor
Appointing a digital executor can make managing your digital estate easier. A digital executor is someone you trust to take care of your digital assets according to your wishes. This person will be responsible for managing, closing, or transferring your digital assets after your death.
Writing A Digital Will
A digital will is a legal document that outlines your wishes for your digital assets after your death. It encompasses your digital estate and tells your digital executor how to manage these assets. You should consider having a lawyer assist with drafting your digital will to ensure it is legally binding.
Providing Access to Your Digital Estate
Once you’ve made a list of all your accounts and made a digital will outlining your wishes for your digital assets, it’s essential to make sure your digital executor will be able to access it when needed. This could be as simple as giving them a copy, or you could store it in a secure place and make sure they know how to access it.
Regular Updates to Your Digital Estate Plan
Finally, remember that this is not a one-time process. As you open new accounts or purchase new digital assets, they should be added to your digital estate plan. Regular updates, at least annually or after major life events, will ensure your digital estate plan stays effective.
By following these steps, anyone can create their digital estate plan. As our lives become even more digitally oriented, ensuring you have a good digital estate plan in place is just another piece of sound financial planning.
