With technology growing by leaps and bounds, there are several factors that need to be taken into consideration when it comes to an estate plan that may not have been in play before. One of the main examples of this are digital assets. Digital assets fall under many different categories, however, it’s important that these always be taken into consideration when it comes to your estate plan.
What are Considered Digital Assets?
Digital assets are any type of content or data that exist in a digital form and can be stored, transferred, and accessed electronically. Here are some examples of digital assets:
1. Cryptocurrencies: Cryptocurrencies like Bitcoin, Ethereum, and Litecoin are digital assets that are secured through cryptographic encryption and stored on a decentralized digital ledger.
2. Digital media: This includes digital files like photos, videos, audio recordings, and eBooks.
3. Domain names: Domain names are digital assets that can be bought and sold, much like real estate. They represent an online identity and can be used for branding and marketing purposes.
4. Intellectual property: This includes patents, copyrights, and trademarks that protect creative works and inventions in a digital format.
5. Social media accounts: Social media accounts are digital assets that can be used for branding and marketing. They can also be sold or transferred to others.
6. Digital collectibles: This includes digital artwork, virtual real estate, and other unique items that are stored on a blockchain or other digital platform.
7. Data and databases: Digital data and databases can be considered digital assets if they are valuable and have the potential to generate revenue or provide useful insights.
Overall, digital assets are becoming increasingly important in today’s digital world, and their value and usage continue to grow as technology advances.
6 Ways You Can Manage Digital Assets in an Estate Plan
Managing digital assets in an estate plan is becoming increasingly important in today’s digital age. Here are some ways you can manage digital assets in an estate plan:
1. Create an inventory of digital assets: Start by making a list of all your digital assets and their locations. This includes login credentials, usernames, and passwords.
2. Appoint a digital executor: Appoint a digital executor in your will who can manage your digital assets after your death. This person should have the technical expertise and knowledge to access and manage your digital assets.
3. Specify how digital assets should be managed: In your estate plan, specify how you want your digital assets to be managed after your death. This includes whether you want them to be transferred to a specific person, sold, or deleted.
4. Store login credentials and passwords securely: Store your login credentials and passwords in a secure location that can be accessed by your digital executor. This can be in a password manager or a physical document stored in a safe.
5. Consider the privacy implications: Be aware of the privacy implications of your digital assets and how you want them to be managed. For example, you may want to specify that your social media accounts be deleted after your death to protect your personal information.
6. Keep your estate plan up to date: Review and update your estate plan regularly to ensure that your digital assets are managed according to your wishes. Digital assets can change rapidly, so it’s important to stay on top of any updates or changes.
Managing digital assets in an estate plan requires careful planning and consideration. By taking the time to create an inventory and specify how you want your digital assets to be managed, you can ensure that your online legacy is protected and managed in accordance with your wishes. The Law Offices of Louis P. Lepore can help; whether you’re ready to create your estate plan or update an existing plan, call our office at 718-354-8646 and we would be happy to schedule a meeting.