Digital Assets include anything stored online or electronically including e-mail accounts, subscriptions, shopping accounts, social media profiles, domain names, websites you own, digital bank accounts, cryptocurrency, or cloud-stored documents like photos, videos, and music files. Although these assets are not in a physical form, they can hold sentimental worth, financial value, or personal information.
Unless you properly account for these assets, they may become inaccessible, lost, or fall into the wrong hands. Here are steps to best ensure they will be managed in accordance with your wishes:
1. Inventory Your Digital Assets. Prepare a comprehensive list of your digital assets. Your list needs to be reviewed periodically as it will change due to new accounts, new subscriptions, or different cryptocurrencies. Periodically purge unused applications and clear out from online storage the documents you no longer need or want. Routinely reviewing and updating your list will save confusion and delays.
2. Securely Store Log In Information. Consider using a password manager like Last Pass, 1Password, or Keeper to store your digital assets’ login credentials. The manager can safely keep track of usernames, passwords, and other sensitive information. Many allow sharing your information with trusted individuals upon your death.
Should you not wish to utilize a password manager, your list should be safely stored with your original estate planning documents.
3. Determine who will manage your digital assets. It is important for your agent under a general durable power of attorney or your personal representative or trustee to be able to manage your digital assets upon your incapacity or death. Your fiduciary can be a trusted family member, friend, or professional. They should be tech-savvy and understand the importance of these assets. Know, however, that even if with a trusted fiduciary, unless you provide clear instructions, your digital assets may not be accessible to them.
4. Specify Instructions in Your Estate Plan. Some online accounts will require action to shut them down or transfer ownership. Otherwise, these accounts may remain open indefinitely or be permanently deleted and lost forever. Under Washington state law, if you have not provided directions to your fiduciary or the designated recipient, the terms of service control what happens to your online accounts.
Here are considerations when providing instructions:
Social Media Accounts: Do you want them to be deleted, memorialized, or transferred to someone else?
E-mail Accounts: Do you want your e-mail accounts to be closed, forwarded to someone, or preserved?
Cryptocurrencies: If you hold such assets, you must provide clear instructions on how to access your cryptocurrency wallet(s), including any passwords or private keys. Failure to plan for cryptocurrency can result in the permanent loss of these assets.
5. Stay Updated. It is important to be familiar with your digital assets’ terms of service and the evolving state and federal laws which will control how your digital assets can be transferred.
For more information, or to make an appointment, please contact Margo Passeau at margo@bethmcdaniel.com or 425-296-3121.
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