Digital Estate Planning Guide: Get Your Digital Assets in Order
A digital estate plan lets your loved ones know what should happen to your email and social media accounts, photos and more after you’re gone.
In our increasingly digitized world, our lives are inseparable from technology. From cherished memories stored in digital photo albums to valuable assets held in online accounts, our digital footprint has become a significant component of our overall legacy. Yet, despite the prevalence of our digital presence, many individuals overlook the importance of digital estate planning for the management and distribution of their digital assets once they pass away.
This oversight can lead to confusion, disputes and even a loss of valuable assets for loved ones left behind. This is where digital estate planning becomes crucial — a proactive approach to ensuring that your digital legacy is managed according to your wishes. In this comprehensive guide, we'll look at the nuances of digital estate planning, providing practical insights and actionable steps to help you secure your digital legacy effectively.
What are digital assets?
At the heart of digital estate planning lies the recognition and cataloging of your digital assets. These assets encompass a wide array of items, including but not limited to:
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
- Email accounts
- Social media profiles
- Digital photos and videos
- Online banking and investment accounts
- Cryptocurrency holdings
- Intellectual property stored digitally
- Subscriptions and memberships
- Personal documents and files stored in the cloud
The first step in creating a robust digital estate plan is to compile a comprehensive inventory of these assets. Documenting each digital account, including login credentials, account numbers and any relevant access information, forms the groundwork for effective digital asset management.
Once you've identified and cataloged your digital assets, the next crucial step is to appoint a digital executor. Similar to a traditional executor who oversees the distribution of physical assets, a digital executor is responsible for managing your digital estate after your passing.
Selecting a trusted individual who is both technologically savvy and capable of carrying out your wishes is very important. This individual will play a pivotal role in executing your digital estate plan, ensuring that your digital assets are handled in accordance with your wishes and in compliance with relevant laws and regulations.
How to craft your digital estate plan
With your digital inventory and executor in place, it's time to craft your digital estate plan. This plan should outline how you want your digital assets to be managed and distributed after your passing. Considerations may include:
- Instructions for accessing and managing digital accounts
- Preferences for the preservation or deletion of social media profiles
- Guidance on the transfer or disposal of valuable digital assets
- Provisions for protecting sensitive information and maintaining privacy
- Directions for digital memorials or tributes
It's essential to review and update your digital estate plan regularly to reflect any changes in your digital assets or preferences. New accounts may be created, passwords may change, and digital assets may accumulate over time. By keeping your digital estate plan current, you ensure that your wishes are accurately represented and can be effectively executed when the time comes.
Navigating the legal landscape of digital estate planning can be complex, as laws governing digital assets vary by jurisdiction. Consulting with legal experts who specialize in estate planning can help ensure that your digital estate plan complies with applicable laws and regulations. Your attorney can provide invaluable guidance on drafting and implementing your digital estate plan, as well as addressing any legal considerations that may arise.
In addition to legal considerations, it's crucial to take proactive steps to protect your digital assets and sensitive information. Utilizing secure password management tools, encryption technologies and other cybersecurity measures can help safeguard your digital estate against unauthorized access or tampering.
Don’t keep your plan to yourself
As you’re working on your plan, be sure to keep your loved ones informed throughout the process. Effective communication is key to the successful implementation of your digital estate plan. Ensure that your loved ones are aware of your digital assets, your chosen digital executor and the specifics of your digital estate plan. Providing clear instructions and access to relevant documents will empower your executor and loved ones to carry out your wishes with confidence and clarity.
Ultimately, digital estate planning is about more than just preserving digital assets — it's about preserving your legacy and ensuring that your wishes are honored and respected after you're gone. By taking proactive steps to create a comprehensive digital estate plan, you can provide peace of mind for yourself and your loved ones, knowing that your digital legacy will be managed according to your wishes.
Justin Stivers is an investment advisory representative of and provides advisory services through CoreCap Advisors, LLC. Stivers Law is a separate entity and not affiliated with CoreCap Advisors. The information provided here is not tax, investment or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
Related Content
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
Justin Stivers is the founder and CEO of Stivers Law, a distinguished Miami-based law firm specializing in wealth and estate planning. With almost a decade of expertise, Justin is dedicated to ensuring that clients' estate plans seamlessly align with their financial aspirations through comprehensive wealth planning. Beyond estate planning, Stivers Law excels in probate and trust administration, elder law, Medicaid planning and special needs planning.
-
How to Help Your Kids Without Ruining Your Retirement
Here are some general considerations to ensure the gift of assets to your kids will not negatively affect your financial future.
By Mario Hernandez Published
-
AI to Power the Next Generation of Robots
The Kiplinger Letter There's increasing buzz that the tech behind ChatGPT will make future industrial and humanoid robots far more capable.
By John Miley Published
-
How Annuities Can Help You Retire Early and Delay Social Security
Waiting until 70 to claim Social Security benefits can pay off, so how do you bridge the gap between giving up your paycheck and filing for benefits?
By Ken Nuss Published
-
How to Get Your Kids to Step Off the Gravy Train
A surprising number of young adults live with their parents. Setting some financial ground rules could get the kids out on their own faster.
By Neale Godfrey, Financial Literacy Expert Published
-
Spring Is a Good Time to Clean Up Your Finances, Too
While you’re decluttering your home for spring, consider also taking a crack at cleaning up your finances and old paperwork.
By Tony Drake, CFP®, Investment Advisor Representative Published
-
Is Your Retirement Solution Hiding in Plain Sight?
Here’s how to use your home equity in combination with an annuity contract to produce late-in-life income.
By Jerry Golden, Investment Adviser Representative Published
-
How to Choose Your Trustee or Executor of Your Will
Above all, you should choose someone you trust, keeping in mind that acting as a trustee or executor can be a complex, thankless and sometimes long-term job.
By John M. Goralka Published
-
Three Steps for Women to Take Control of Their Finances
These strategies are especially for women who are new to managing their money because of divorce or the death of a spouse.
By Emily Glassman Published
-
How AI Can Help Take the Emotion Out of Investor Decisions
AI-driven recommendations can complement human judgment, leading to more rational choices that aren’t as influenced by biases and blind spots.
By Francis Geeseok Oh Published
-
Can You 1031 Exchange into a REIT?
No, you can't, but two other REIT-like alternatives let you defer capital gains taxes while giving you exposure to institutional-quality real estate assets.
By Daniel Goodwin Published