Estate Planning in the Digital Age

When planning your estate, it’s important to consider your online footprint.

Traditionally, when we think about estate planning, we tend to think about tangible assets and financial accounts. Real estate, personal property, financial assets, and business interests are all part of the conversation. But, each of us has other assets that are often overlooked — digital assets and accounts that are just as important to include in an estate plan. Here’s a look at what those assets are, why they’re important, and a checklist to help incorporate them into your estate plan.

What are digital assets?

Simply put, a digital asset is any sort of online footprint — anything that lives online that has provided or could provide value. Some are more obvious than others, but building a digital estate plan requires taking careful inventory of everything that makes up your online presence. Some common examples of digital assets include:

• Email accounts
• Social media accounts
• Domain names
• Websites
• Blogs
• Photos, documents or videos
• NFTs

Why are digital assets important?

Ensuring that these assets are accounted for, secure, and that all access information is provided and up-to-date is essential for a smooth estate transition to loved ones. Estate administration can really be drawn out if things are not in order, causing frustration for loved ones and potential security concerns without the appropriate people able to access and safeguard assets.

Another important step for avoiding these problems is to make sure your will or trust document includes language that gives the executor or trustee full authority over all digital
assets. This will enable them to proceed with whatever needs to be done, whether it’s accessing an account or anything else that requires authorization. Another reason digital assets are important is because, like other parts of an estate, they have value or are tied to finances in one way or another. For example, social media accounts can be monetized, there are hosting fees associated with keeping a website live, and domain names can have wide-ranging costs. Taking no action on digital assets opens the door to many potential financial headaches.

Protecting Your Assets from Cyber Threats:

To make sure your digital assets stay safe from cyber threats, consider the following:

1. Update your security software — Keeping all of your devices — whether it’s your computer or your smartphone — up to date on the latest security software is key in protecting yourself from malware or other online threats. To do that, we recommend you do software and security updates regularly. It’s also important, whether you’re at home or out in public, to strictly use secure Wi-Fi networks, especially when accessing sensitive information online.
2. Use strong passwords — All of your accounts should have a unique login. It’s helpful to use special characters and a combination of numbers and letters to make your passwords more complex. When possible, consider using multi-factor authentication to reinforce the security of your accounts.

Digital estate planning checklist:

Here’s a simple list of key actions you can take to get your digital assets in order and incorporated into your estate plan.

1. Appoint an executor or trustee — Identify someone you trust with your digital assets to execute your wishes. We generally advise that you appoint one executor or trustee for your entire estate to avoid disputes, but if a tech-savvy loved one is a better fit for your digital presence specifically, take that into consideration.
2. Take inventory — Think carefully about your digital footprint — every email address, social media account, photo storage site, etc. Make a complete list of everything and keep it up-to-date if something changes.
3. Keep access information up-to-date —  Just as important as the assets themselves are the login credentials needed for access. Keep a list and update it right away if logins change. Also, consider two-step verification processes. Make sure that everything needed to access an asset is spelled out and multiple, trusted individuals know where the access information can be found.
4. Make your wishes clear — Do you want your social media accounts deleted or memorialized? Will your websites live on? Are they tied to a business? How should they be managed? Think about what you want for the future of each digital asset and make sure your wishes are clear.
5. Lean on an expert — Especially if you’re unsure where to start, the financial professionals at Trust Point can answer your questions and help guide you through each aspect of your digital estate, ensuring you have all the bases covered.

As technology continues to evolve, digital assets will proliferate and likely become an even greater part of estate planning in the years ahead. Keeping tabs on your online footprint will create peace of mind for you and your loved ones, securing your digital legacy.

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