Q & A with Debra | What Happens with your Digital Assets when you die?

Q & A With Debra

First, what are digital assets? Digital assets are anything that is not in tangible, physical form. Most people have several digital assets:

• ·         Email Accounts
• ·         Subscription Services
• ·         Music and video assets
• ·         Picture and document storage
• ·         Gaming assets
• ·         Social media content
• ·         Websites
• ·         Financial Platforms & Banks
• ·         Cloud Storage

When it comes to digital assets, the fate of these assets after death is a topic that has gained attention in recent years. The laws regarding digital assets and their inheritance are still evolving, but there are some steps you can take to protect your digital legacy.

One of the key challenges with digital assets is that many of them are password-protected or subject to the terms and conditions of specific websites and companies. If the provider has a plan in place for your digital assets after death, it is best you comply with those procedures to make sure you are achieving your goal with that account.

State laws are also just popping up when it comes to digital assets. You will want to make sure that your estate plan is consistent with state laws. The state law may have an affect on your terms and conditions and terms of use with your service provider.  With digital assets growing every year, protecting them properly is critical.

Here are a few things you can do to protect your digital assets:

• Include digital assets wording in your estate plan.
• Create and inventory of every place you have data or files with passwords. Don’t forget the cloud storage, email accounts, social, online banking, PayPal, websites, etc.
• Provide instructions. Clearly state your wishes, i.e., delete, transfer, and to whom.
• Consider a digital executor. Appoint someone you trust who will be responsible for managing.
• Review privacy policies. Know your platforms.

Facebook is a popular platform for many. They have a program where you can request your account to become a memorialized account for you or you can request deletion of your account. You need to dig through the buttons to find where to set this up in your account settings.

Do not assume that you own everything stored digitally. Account credits, frequent flier points and cryptocurrency are typically transferable to your heirs. Movie and music libraries, phone apps and email accounts are typically not transferable, since you may not own the content and are only a permitted user. You and your estate planning attorney should review any user agreements to protect your rights concerning these accounts.

A non-fungible token (NFT) is a way of owning the original version of a digital file, such as a piece of art, a GIF, a video, or an audio recording. You can think of the NFT as a secure digital lockbox holding a unique digital file. NFTs are logged using a digital ledger called blockchain, which provides a secure way of verifying authenticity and ownership. However, like cybercurrency, NFTs require a password or a distinct key to gain access, and both the NFT and the underlying digital file can be lost if an owner’s trustee or executor doesn’t have that information.

While this is largely untested in the courts, adding language that specifies your wishes with each of your accounts is a good idea. Make sure you have an estate plan that includes your digital assets. Taking proactive steps to address the fate of your digital assets can help ensure that your online presence is managed according to your wishes after you pass away.

Sources: Bing & Legal Zoom, Kiplinger Personal Finance

Debra Lee, Author | Keynote Speaker | Blogger | Biz Coach | Life Coach