We live in a world where nearly everything is digital. Our banking apps, Instagram accounts, and emails live right in our back pocket. The days of paper documents are long gone, so you’ve kept all your passwords safely stored in yet another password-protected account.
When it comes to estate planning, your digital assets deserve just as much attention as your physical ones. Without clear instructions, your accounts could be locked forever, and your assets, like cryptocurrency, would become inaccessible.
Here is a step-by-step guide to make sure your digital assets are protected and end up in the hands of the people you intend.
Step 1: Create an Inventory List
Start by making a complete list of your digital assets to ensure nothing gets overlooked. Store this somewhere safe, private, and separate from your will. Remember, your will will need to go through probate, which means anything in your will becomes public.
Ensure your inventory includes:
- Online accounts
- Banking
- Investments
- Cryptocurrency
- Social media accounts
- Websites or domain names
- Subscription services
Step 2: Leave Clear Instructions
Not all accounts can be managed or accessed in the same way. Some accounts may need to be transferred, and others shut down. Your instructions should include details for each account, like:
Cryptocurrency: Specify how to access or transfer your holdings, and where your hardware wallets or seed phrases are located. Without private keys, your crypto can be permanently lost.
Social media: Decide if you want your accounts deleted, frozen, memorialized, or passed on to someone else.
Other accounts and subscriptions: Share whether photos should be saved, which files matter most, and what subscriptions need to be canceled.
Step 3: Choose a Digital Executor
Just as you assign an executor for your will, you can name a trusted digital executor to manage your online assets. Choose someone trustworthy, tech-savvy, and capable of carrying out their duty.
You don’t need to hand over all your private information to this individual; you can give them limited access or full authority, depending on what you are comfortable with.
Step 4: Create a Legal Document
Work with an estate planning attorney to ensure your digital plan is legally protected. You will need to update your will and trust to include language about your digital assets. Create a separate document with your inventory and instructions, and consider a durable power of attorney so someone can manage your account if you become incapacitated.
Step 5: Keep Your Information Private
Never put direct log-in details into your will, as it will become public in the probate process. Instead, you can use a password manager to secure your passwords or store important logins in a fireproof safe or deposit box.
Step 6: Keep Your Documents Up to Date
Your digital assets can change quickly. New accounts get opened, old ones deleted, crypto wallets move, and subscriptions renew. Plan to update your will any time you make any big changes, or make it a plan to revisit your documents once a year. This will ensure you stay as up to date as possible.
Your estate plan goes beyond your physical assets; it goes into your digital world as well. By taking some time now, your family can access whatever they need, no matter where it’s stored.
