Your Estate Plan May Include More Than Property and Bank Accounts
For many families, an estate plan brings to mind a home, financial accounts, personal belongings, and documents such as a will or trust. Today, however, a meaningful part of a person’s life may exist online. Email accounts, cloud storage, social media profiles, digital photos, subscription services, online businesses, cryptocurrency, and other electronically stored property can all raise questions after a death or incapacity.
Planning for these assets can make it easier for the people you trust to identify what exists, understand your wishes, and avoid unnecessary confusion.
What Counts as a Digital Asset?
The term digital asset is broad. It may include files stored on a computer or in the cloud, photographs, videos, domain names, websites, rewards accounts, digital payment accounts, cryptocurrency, and content connected to an online business. Some online accounts have little or no monetary value but may carry significant sentimental or practical importance.
The key first step is creating an inventory. You do not need to place passwords in a will. Instead, keep a secure record of important accounts and make sure a trusted person knows how to locate that record when necessary.
Why Access Can Be Complicated
Digital property is different from a box of photographs or a piece of furniture. Access may be controlled by passwords, multi-factor authentication, a provider’s terms of service, privacy rules, and applicable law. Even when a family member knows that an account exists, the provider may have a specific process for handling the account of someone who has died or become incapacitated.
That is why a complete estate plan should address both authority and practical access. Your legal documents can be coordinated with the tools offered by individual platforms, such as legacy-contact or inactive-account settings when available.
Include Digital Assets in Your Estate Planning Conversation
When meeting with an estate planning attorney, tell them about digital property that has financial, business, or personal importance. If you own cryptocurrency, operate an online business, earn income from digital content, or maintain valuable domain names or intellectual property, those assets may require additional planning.
For nonfinancial accounts, consider what you want to happen to them. Some people want social media profiles memorialized or deleted. Others want family photographs preserved and shared. Clear instructions can reduce the burden on loved ones who otherwise have to guess.
Review Your Plan as Technology Changes
Digital life changes quickly. An account that matters today may be irrelevant in a few years, while a new platform or asset may become important. Review your inventory periodically and update instructions when you open or close significant accounts.
Estate planning is most effective when it reflects the way you actually live. Including digital assets in the conversation helps create a plan that addresses both traditional property and the online footprint you may leave behind.
Talk With a New York Estate Planning Attorney
Every estate is different, and the right approach depends on the type of assets involved, your family circumstances, and the documents already in place. Thomas J. Manzi, P.C. assists individuals and families with estate planning and related matters in New York. If your current plan does not address digital property, consider reviewing it with an attorney and deciding whether updates are appropriate.
