Today everything is digital. Your photographs, your taxes and even your financial documents. Unfortunately, the courts are still trying to catch up with digital assets. Estate planning itself requires numerous documents, but when you add in digital estate planning, it only gets worse.
Digital assets can include:
- Social media accounts
- Online bank accounts
- Tax accounts
Digital assets, while convenient during your lifetime, are a hassle upon your death.
You can avoid any complications by preparing for your digital assets ahead of time. By creating a list that has your username and password information for each account, surviving family can transition your digital assets that much easier.
Automatic Bill Pay Considerations
One thing individuals forget about is their automatic bill pay. This service automatically drafts payments from your checking account to a designated payee on a scheduled basis. But, when you pass away, these services are not notified and they continue to send payments. Your surviving family is also unaware of your service, which could make it difficult to track down payees and determine how much has been paid and what should be refunded (if any).
When you meet with an estate planning attorney you will add in a special section for your digital assets. This section will include information like:
- Online banking
- Bill pay services
- Email accounts
- Social media accounts
- Online file storage accounts
- Credit card accounts
- Loyalty programs and frequent flyer miles
- Retirement and/or investment accounts online
In addition, if you own a family business that operates online, you will need to include that information with your digital assets. This information will be given to your successor so that he or she can manage your business and your business’ online profile.
- Words to the Wise: Five Estate Planning Suggestions - March 1, 2021
- Updating Your Plan: Beneficiary Designations - February 26, 2021
- Four Inheritance Planning Tips for Blended Families - February 17, 2021
