Managing digital assets has become as crucial as handling physical and financial assets in our increasingly digital world. These assets, from social media accounts to cryptocurrency, need careful consideration in estate planning. Understanding what happens to your digital assets when you die in Massachusetts and how to protect them can ensure your digital legacy is managed according to your wishes.
Understanding Digital Assets
Digital assets include a broad range of items, including:
- Social Media Accounts: Facebook, Instagram, Twitter, etc.
- Email Accounts: Gmail, Yahoo, etc.
- Online Banking and Investment Accounts: PayPal, Venmo, cryptocurrency wallets, and stock trading accounts.
- Digital Files: Photos, videos, and documents stored on the cloud or local devices.
- Subscriptions: Streaming services, e-books, online memberships.
Steps to Protect Your Digital Assets
- Inventory Your Digital Assets:
Create an exhaustive list of all your digital assets.
Include login information, passwords, and security questions. - Use Online Tools:
Some online platforms offer tools to manage digital assets after death. For instance, Facebook’s “Legacy Contact” allows you to designate someone to manage your account posthumously.
Google’s “Inactive Account Manager” can be set up to give access to trusted contacts after a period of inactivity. - Include Digital Assets in Your Estate Plan:
Work with an estate planning attorney, like O’Connell Law, to include specific instructions regarding digital assets in your will or trust.
Specify how you want each asset handled and who should have access. - Appoint a Digital Executor:
Designate a person you trust to be your digital executor in your will.
Your designated person will be responsible for managing your digital assets according to your wishes. - Use Password Managers:
Store your passwords securely using a password manager.
Ensure your digital executor knows how to access this manager. - Regularly Update Your Plan:
Regularly review and update your digital asset inventory and estate plan.
Ensure new accounts and changes in passwords are documented.
Practical Considerations
- Privacy Concerns:
Be mindful of privacy implications for your heirs.
Clearly state what information should remain private and what can be shared. - Legal Implications:
Understand that some digital assets might have terms of service that restrict transferability.
Consult with an attorney to navigate these legal challenges. - Security Risks:
Protect your digital assets from unauthorized access.
Use strong, unique passwords and enable two-factor authentication where possible.
Digital assets are integral to modern life, and their management after death requires careful planning. Engaging with an estate planning attorney and using available online tools can provide peace of mind that your digital affairs will be in order for your loved ones. As digital asset laws continue to evolve, staying informed and updating your estate plan accordingly is key to protecting your online legacy in Massachusetts. To learn more, we’re offering a free webinar, “Securing Your Digital Assets.” There are various time slots available throughout the week. You are sure to find a time that is convenient for you.
