In the last few years, estate planning has crossed realms. As people increasingly live their lives online, it becomes important to incorporate digital assets into an estate planning strategy.
This not only ensures the seamless transfer of tangible assets but also safeguards the often-overlooked digital footprint you leave behind.
Digital inventory
Start your digital age estate planning by creating a complete inventory of your digital assets. This includes but is not limited to social media accounts, email accounts, cryptocurrency holdings and any digital subscriptions. Compile a list that specifies the relevant credentials, ensuring that your executor or designated individual can access and manage these accounts on your behalf.
Password management
As passwords are the keys to the digital kingdom, it is important to address their management in your estate plan. In fact, 20% of Americans choose to reset or change their passwords every month.
Avoid storing passwords in an easily accessible format. Instead, consider utilizing secure password management tools. Document the master password in a secure location and provide instructions to your executor on how to access it.
Data protection
In a world where data breaches are increasingly common, prioritizing the security of your digital assets is non-negotiable. Specify the measures you have in place, such as two-factor authentication, and communicate these details to your executor. By safeguarding your digital estate against unauthorized access, you not only protect your privacy but also ensure the seamless transition of your digital legacy.
Estate planning in the digital age may initially seem overwhelming. By addressing the intricacies of using digital estate planning, you can construct a plan that safeguards your legacy in both the physical and digital realms.