Just 20 short years ago estate planning focused primarily on deciding who you wished to inherit your assets, identifying how they would be transferred following your death and then having the appropriate legal documents prepared.
The booming popularity of the internet has broadened the focus now, as most folks spend at least part of their life online, whether using e-mail, tweets, Facebook or accessing password-protected online accounts. Thus it’s also important to plan for the disposition of your digital assets in the event that you die or become incapacitated.
Laws governing digital assets are not well established at present. Some states do have estate laws that specifically address these assets yet the laws are fairly new and untested. So you should consult with your own estate planning attorney to determine how digital assets are handled in your state.
In general, most websites, blogs and registered domain names are transferable under standard property and copyright laws. Certain online accounts, however, may not be transferable, depending on the site’s terms of service; examples include e-mail and various social media accounts. The terms of service vary widely from site to site. Some may allow an individual with the appropriate legal authority to access your accounts upon your death. Others may put your accounts in a ‘memorial state’ or permanently delete your account upon appropriate notification of your death.
The most important step you can take to protect your digital assets is to include written instructions for them in your estate plan, just as you address your physical assets. Your first step should be to identify and inventory all of your digital assets, making a list of where they are located and how they are accessed (user name and password). Next, indicate what you wish to happen to them, such as transfer to an heir or terminate. Also specify who will be responsible for carrying out those wishes, such as your executor or family member. Be sure to reference this digital asset inventory in your will but keep it separate since your will becomes public information.
A number of online websites can securely store all of your digital asset information and allow you to leave legacy instructions for a designated beneficiary or executor. The cost of such services varies, depending upon the scope offered.
Don’t overlook the planning opportunity for your digital assets afterlife. You will greatly aid your executor and also provide additional peace of mind to your family.