Laura T. Curry, Managing Attorney, Sinclair Prosser Gasior
When you think of digital estate planning, you may think of planning for your cryptocurrency. But if you do anything online, such as Venmo, Facebook or frequent flyer miles, for example, you have digital assets. You need to ensure someone can access them after you pass away. Failing to plan for your digital assets while you’re alive could cause unnecessary costs, stress and time to those you leave behind. Here’s what you should consider to make the job easier for your executor or trustee.
- Take inventory of your digital assets.
Digital assets are virtual in nature. Your executor or trustee is not likely to find a copy by going through your mail or searching your home office. It is important to leave additional instructions on what digital assets you have and how your executor or trustee can gain access. The first step is to list your digital assets, including all passwords. Don’t forget about two-factor authentication, often set up on accounts to verify identify. - Keep your inventory safe.
Do not keep this sensitive information in your will since that becomes public after you pass away. Do not include the information in your trust as beneficiaries may be entitled to a copy after your death. You may want to consider online storage sites, such as Everplans or LastPass, to keep information safe and secure. Many people keep a written list of assets and passwords in a safe location. - Keep your digital asset inventory updated.
Just as you need to update your estate plan when life changes, your digital assets and passwords will change as years go by. It’s important to keep this part of your estate plan updated as well. - Give proper authority to access your digital assets.
If your executor or trustee needs to access your digital assets and they do not have the needed information, then your estate planning documents must give them the proper authority. As such, you must give your executor or trustee authority in your will or living trust. Consider that there may be a time when you’re incapacitated. It’s important that your property or financial power of attorney gives your agent authority to access digital assets as well. - Add an account administrator.
Check with your main online providers to see if they allow you to appoint someone to manage your accounts if you become incapacitated or pass away. Google, Apple and Facebook are among some online providers that allow you to do this.
Digital assets are the future. It’s important to think about how your digital assets impact your estate plan.
This article is for informational purposes and is the opinion of the author based on current interpretations of Estate Planning laws, which can change with future digital and social media changes and legislation. Your circumstances may require direct advice from an Estate Planning attorney, tax and investment professionals.
Laura T. Curry is Managing Attorney, Sinclair Prosser Gasior, estate planning and elder law attorneys and a member of the Hospice of the Chesapeake Planned Giving Advisory Council.
Read more about planned giving: https://hospicechesapeake.planmygift.org/
