Digital estate planning, a relatively new but increasingly important aspect of estate management, is crucial in the age where the lives of most Americans are increasingly intertwined with the digital world. This planning process involves organizing and making arrangements for digital assets in the event of one’s death or incapacitation.
Digital assets can range from online bank accounts and investments to social media profiles and digital photo libraries. Some of these assets might hold significant financial value, while others may have sentimental importance. Digital estate planning helps ensure that these assets are identified, protected and distributed according to your wishes, preventing potential loss or misuse.
Why make this effort?
Take a moment to think about every account that you access online that is password protected. Digital estate planning allows you to designate who can access your digital accounts and files. This can better ensure that your privacy is maintained even after death. It also helps in securing sensitive information that might be stored in these accounts, like personal data or confidential business information.
Additionally, when someone passes away, sorting through digital assets can be a daunting task for family members. Without proper planning, loved ones may not even be aware of certain assets or know how to access them. A digital estate plan provides clear directions and necessary information, which can simplify this process and reducing stress during a difficult time.
Ultimately, just as with physical assets, your digital assets form a part of your legacy. Digital estate planning allows you to make decisions about your digital footprint. For this and so many other reasons, as your digital footprint continues to grow, incorporating digital estate planning into your broader estate management strategy is both a wise and necessary step.