Digital assets, such as online accounts, social media profiles, cryptocurrency, digital photos, and documents, are becoming an increasingly important consideration when planning your estate. These assets are generally governed by the terms of your will and any power of attorney (POA) document, but there are specific legal rules you should be aware of to ensure everything is handled properly.
Some people keep even more assets in cyberspace: client records, patient records, inventory, customer databases, websites, blogs and cryptocurrency. There are also digital assets like non-fungible tokens, NTFs, online gaming and Metaverse assets.
With fewer than a third of all adults in the US having a last will in 2024, even fewer have planned for digital assets. Failing to plan for digital assets leaves a nightmare for loved ones when settling an estate. It puts assets at risk of being stolen or lost completely. Identity theft is also far easier when no one’s taken control of or deleted digital assets.
Start preparing for your digital demise by creating a thorough digital inventory. Include URLs for the accounts, your username and password, the account number and value and how the account is accessed. If the account requires two-factor identification through email or text, ensure that your digital executor has this information and access to the physical device.
The next step is to review which platforms allow you to designate a person to take control of your assets if you become incapacitated or die. Google, Facebook and Apple let you designate someone to be a “legacy” contact—the name of the role changes with the platform.
There are nuances to be aware of. You’ll need to decide whether you want someone to have access to the account and the ability to read its contents or just access the account to delete it. If you have private emails, documents, or electronic materials you don’t want anyone to access, you’ll need to be very specific about what you do and don’t want your designated digital person to do.
Figuring out how to manage digital assets isn’t just about what happens when you die. If you become incapacitated, would your spouse be able to pay the electric bill, access mortgage statements, or pay the phone bill?
Also, you may want to reconsider if you manage your personal life through your work email. Your work email does not legally belong to you but to your employer. Your emails can be read by anyone at your workplace with access and authority, including the IT department, supervisors and CEOs. Most employers shut down email access immediately after a person leaves their job or when they learn of an employee’s death. It is wiser to have a personal email for your personal life.
Digital assets require estate planning, just as tangible, traditional assets do. You’ll want to name an executor in your will and/or trust to manage your digital assets. Additionally, Make sure your POA explicitly grants the agent authority to manage your digital assets. If you own cryptocurrency or NFTs, talk with your estate planning attorney about protecting them as part of your estate plan.
By addressing these issues in your estate planning documents and making the proper provisions, you can ensure that your digital assets are managed according to your wishes after death or incapacity. Schedule a consultation with one of our experienced estate planning attorneys at Sims & Campbell in Annapolis and Towson, Maryland.
