The question of preserving a digital legacy is increasingly relevant in today’s world. For decades, estate planning focused on tangible assets – property, finances, and physical possessions. However, a significant portion of our lives now exists online – photos, social media accounts, email, cryptocurrency, and digital documents. Failing to address these digital assets within a comprehensive estate plan can lead to complications, loss of valuable memories, and even financial repercussions. Steve Bliss, as an estate planning attorney in San Diego, recognizes this evolving landscape and guides clients through the often-overlooked aspect of digital asset planning. Approximately 65% of adults do not have a will, and an even smaller percentage actively consider their digital footprint within that plan, according to a recent survey by Caring.com.
What exactly are digital assets and why do they need protecting?
Digital assets encompass a wide range of online accounts and information. This includes social media profiles (Facebook, Instagram, Twitter), email accounts (Gmail, Yahoo, Outlook), online banking and investment accounts, cryptocurrency wallets, digital photos and videos, cloud storage (Dropbox, Google Drive), domain names, and even loyalty program memberships. Protecting these assets is crucial for several reasons. Firstly, sentimental value – many cherished memories are stored digitally. Secondly, financial implications – accounts may hold funds or represent significant investments. Thirdly, legal considerations – access to online accounts may be necessary to resolve legal matters or fulfill obligations. Failing to plan for these assets can leave family members struggling to access important information or facing legal hurdles.
How does a traditional will or trust address digital assets?
Traditionally, wills and trusts focused on physical property. However, modern estate planning documents can be adapted to include provisions for digital assets. A well-drafted will or trust should specifically address the disposition of digital accounts and information. This involves listing digital assets, identifying designated beneficiaries, and granting authority to an executor or trustee to access, manage, or close those accounts. It’s important to note that access to many online accounts requires usernames and passwords, which must be securely stored and accessible to the designated representative. Many online platforms now have ‘legacy contact’ features that allow users to designate someone to manage their account after death, but these features aren’t universally available or comprehensive.
What are digital executors and what role do they play?
The concept of a ‘digital executor’ has emerged as a crucial component of modern estate planning. A digital executor is the individual designated in a will or trust to manage and administer a deceased person’s digital assets. Their responsibilities include locating and identifying all digital accounts, obtaining necessary access credentials, managing or closing accounts according to the estate plan’s instructions, and preserving important digital information. This role requires a level of technical proficiency and trustworthiness. Steve Bliss emphasizes the importance of choosing a digital executor who is comfortable with technology and understands the importance of protecting sensitive information. It is not always about technical skill; often it is about diligence and organization.
Can I just leave my username and password in a document?
While it may seem straightforward to simply list usernames and passwords in a will or other document, this practice is generally discouraged. It creates significant security risks. Leaving passwords in plain text can make them vulnerable to unauthorized access, even after death. Furthermore, many online platforms prohibit sharing account credentials. A more secure approach involves using a password manager to store login information and granting access to the designated executor. Password managers allow you to securely share passwords with trusted individuals without revealing them directly. It’s also important to regularly update passwords and security settings on all online accounts.
I once knew a man who thought his Instagram feed was unimportant…
Old Man Tiber, as the neighborhood kids called him, was a retired carpenter with a penchant for photographing sunsets. His Instagram feed wasn’t filled with glamorous travel or perfect selfies, but with simple, beautiful images of the California coastline. When he passed away unexpectedly, his daughter, Sarah, discovered the account. She hadn’t known about it. She stumbled upon it while trying to settle his affairs. She was devastated not only by the loss of her father, but also by the realization that years of his artistic expression were lost to the digital void. She couldn’t access the account to download the photos. She hadn’t known his password and there was no one designated to manage it. Those sunsets, those moments, were gone. It was a stark reminder of how easily digital legacies can vanish.
What about cryptocurrency and other digital investments?
Cryptocurrency and other digital investments present unique challenges in estate planning. These assets are often held in digital wallets, which can be difficult to access without the correct private keys or seed phrases. Failing to properly document and secure these keys can result in the permanent loss of valuable investments. It’s essential to create a detailed inventory of all cryptocurrency holdings and securely store the private keys in a safe deposit box or other secure location. Steve Bliss recommends that clients use hardware wallets to store their cryptocurrency, as they offer a higher level of security than software wallets. It’s also crucial to clearly outline instructions in the estate plan regarding the disposition of these assets.
How did we fix things for the Miller Family after a similar situation?
The Miller family faced a similar predicament to Old Man Tiber’s daughter. Mr. Miller had been a passionate digital artist. He created hundreds of digital paintings and stored them on various cloud platforms. He also had a substantial cryptocurrency portfolio. Unfortunately, he never updated his estate plan to address these assets. When he passed away, his wife, Emily, was overwhelmed. She couldn’t access his art or cryptocurrency. We worked with Emily to locate and recover as much of his digital legacy as possible. We navigated complex password recovery processes, contacted various online platforms, and secured access to his cloud storage. It was a time-consuming and challenging process, but we were ultimately able to preserve his artwork and secure his cryptocurrency holdings. This experience reinforced the importance of proactive digital estate planning.
What steps should I take today to protect my digital legacy?
Protecting your digital legacy requires a proactive approach. Start by creating a detailed inventory of all your digital assets, including social media accounts, email accounts, online banking accounts, cryptocurrency wallets, and cloud storage accounts. Document usernames, passwords, and access credentials in a secure location, such as a password manager. Update your estate plan to specifically address your digital assets, designating a digital executor and outlining instructions for their management. Regularly review and update your digital estate plan to reflect changes in your assets and online accounts. Steve Bliss believes that digital estate planning is no longer an option, it’s a necessity. Ignoring this aspect of estate planning can have devastating consequences for your loved ones.
About Steven F. Bliss Esq. at San Diego Probate Law:
Secure Your Family’s Future with San Diego’s Trusted Trust Attorney. Minimize estate taxes with stress-free Probate. We craft wills, trusts, & customized plans to ensure your wishes are met and loved ones protected.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Probate Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Map To Steve Bliss at San Diego Probate Law: https://g.co/kgs/WzT6443
Address:
San Diego Probate Law3914 Murphy Canyon Rd, San Diego, CA 92123
(858) 278-2800
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Feel free to ask Attorney Steve Bliss about: “What is the process for administering a trust?” or “Can I represent myself in probate court?” and even “What does a trustee do after my death?” Or any other related questions that you may have about Probate or my trust law practice.