While creating your estate plan, you likely included physical property, such as real estate, family heirlooms and other valuable items. But you may not have made plans for digital items.
According to a survey conducted by Caring.com, only 33% of Americans have created an estate plan, and many have yet to consider how to incorporate digital assets into their plans. The following steps can help you successfully incorporate digital assets into your estate plan.
Start by creating a list
Create a list that names all of your digital assets and any required passwords to access them. This list should include information about your email and social media accounts and other digital property, including money transfer apps, virtual currency and domain names. Let your family members know about this list and how to access it.
Back up your data
You may currently store the large majority of your digital assets on the cloud. Although this is a convenient place to store them, regularly back them up on a local storage device or computer, so your family members can gain access to them easily.
Understand what you own
In some cases, you may have purchased a nontransferable license to use an asset instead of an actual digital asset. Figure out what you own outright before including certain assets in your estate plan.
Throughout your life, the number of digital assets you acquire may increase or decrease. Look over your estate plan on a regular basis and make updates to your plan to include any new digital assets you obtain and want to pass on.