Archive for estate planning

Digital Assets and Estate Planning: Have You Updated Your Estate Plan?

Your digital assets could have economic or sentimental value

Outlining what is to be done with your digital assets can save frustration, heartache and lots of red tape for family, friends and representatives who need to handle your affairs. Otherwise, your family or executor may spend countless hours and still not be able to track down all of these assets.

Why should you include digital assets? First, digital assets could have economic or sentimental value. Secondly, if they cannot be tracked down, they may be lost forever. An article in MarketWatch suggests your estate could even be put at risk for fraud or hacking due to lost accounts.

Not sure if you have digital assets? Do you have email? A PayPal account? Online banking or shopping accounts? Online photos of family or friends? Social media pages? Do you back up your phone or computer data to the cloud? Do you get paperless bills? If you answered yes to any of these, you have digital assets.

How do you protect your digital assets in the event you can’t manage them on your own, such as through illness or death? Consider these tips:

Create a list of all of your digital assets.
Include information on how to access the account (such as providing a website address). Provide your login information, including username and password. Add any secret words or answers to security questions that may be required to verify the account. If an account requires two-factor authentication, provide the cell phone number and how to access the phone so your executor can receive the text message on that device to get into the account.

Update your Power of Attorney,
Updating your Power of Attorney gives that person power to manage your digital assets if you become incapacitated. We found the following language samples others have added to their Power of Attorney documents at http://www.thedigitalbeyond.com/sample-language. You can add this information to our do-it-yourself General and Durable Power of Attorney Legal Form Kit as an instant download from our website. An estate planning attorney can also help you add the right wording to your Power of Attorney.

Add language about digital assets to your will.
We offer a do-it-yourself Will Forms Kit to which you can add a statements saying your attorney or executor has power to manage digital assets. Also, you may want to outline which assets go to which person. Including instructions on how to close your online assets or let your social media acquaintances know what’s going on could also be included. Click here for a sample of language you can use in your will to give an executor power to handle your assets. An attorney can also help set up a will that thoroughly covers digital assets.