As you likely know, a comprehensive estate plan includes a will, trusts, power of attorney and advance directives. And if you have all of those in place, you are to be commended, as most Americans have not created an estate plan.
But in today’s modern world, many of our activities are conducted online. Would your estate executor and power of attorney know how to access that information if you die or become incapacitated?
What’s included in a digital estate plan?
A digital estate plan is a strategy for the management and distribution of your digital assets, such as:
- Social media accounts
- Smartphone app subscriptions
- Web domains
- Email accounts
- Online banking
- Retirement accounts
- Cryptocurrencies
- Digital photos and documents
Your first step is to create an inventory of your digital assets. We may work across multiple platforms throughout our lives, which means we have photos, documents, and email accounts in Google, Microsoft 365 and iCloud.
For each digital account, you will need to provide your username, password and security questions. This information should be kept in a safe place or with a trusted individual. You will also need to specify how you want each asset to be handled, whether it’s deleting accounts, transferring ownership or archiving data. For example, Facebook and Instagram allow family members of the deceased to transfer your page into a memorial account.
You will also want to designate a digital executor to ensure your instructions are followed. This person should be tech-savvy and able to work closely with the estate executor.
It’s crucial that you work with someone to ensure your digital plan aligns with your overall estate plan and account agreement terms.