What Is Digital Estate Planning?
Digital estate planning is the process of you laying out a plan for your digital assets to be taken care of after your demise. Digital assets comprise anything that belongs to you and is stored electronically. Your photographs, recordings, any data in the cloud, PCs, external hard drives, cell phones, tablets, digital music players, digital cameras, tablets, and other gadgets are considered to be your digital assets. Digital records like your bank accounts, credit cards, PayPal, email accounts, social media, shopping, and video sharing accounts are also essential to your digital estate planning.
A LastPass report indicates that the average individual utilizing a password management tool was managing 191 passwords. Password management provider DashLane found that the quantity of online records we use is increasing at a pace of about 14% for each year.
Do You Need A Digital Estate Plan?
Having a digital estate plan helps your family to understand exactly what to do with your online accounts after you’re gone. It eliminates the need to track down passwords and gives your beneficiaries the legal standing to access your digital assets.
Creating a written plan for managing your digital assets gives legal protection to your friends and family since State and Federal laws make your online data more accessible.
Here is How You Can Create Your Digital Estate Plan:
List Out Your Digital Assets
The first step is listing out all your digital assets for yourself and your partner. If either of you has a business, try to make a separate list for all digital assets for your business. You might need to print out a copy of all paperless statements to make a paper record for them. You can do this at the end of every year to ensure the document is up-to-date.
Draft Instructions for Your Digital Assets to be Handled
Lay down instructions on what should happen to your online accounts when you pass on. This could range from memorializing your account to deleting an account, or even passing on your digital assets. Ensure you leave a separate document with the login information to your online accounts so your digital executor can access them.
Name a Digital Executor
An executor is liable for setting up your digital estate. In your digital estate plan, name an executor, or even two, to give them the right to carry on your wishes. You can use an online digital estate planner like Clocr to build your digital estate and assign an executor.
Store Information Safe and Near
Store your digital data in a protected yet accessible location. This way, you can secure your digital estate plan, as well as update it easily. You can do this by leaving it with your attorney, or storing it in a safe, or on an encrypted shared drive, or even all.
Make It Legal
Based on the state you live in, you might have the option to legalize your digital estate plan in a legally binding report. The easiest way to do this is by naming a digital executor in the will.