We live in an age of modern convenience where Digital Assets have made our lives simpler with their ease of use and accessibility. We can access any digital asset from the comfort of our phones, but what happens when you die or become incapacitated? That’s where a Digital Estate Plan comes into play!
Let us discuss important topics like transfer of assets, estate planning attorney, digital asset transfer and revocable trust.
What is The Transfer of Digital Assets?
The need for transfer of digital assets plans increases as people often don’t think about how important it is to transfer ownership over one’s assets online – even if they own everything else tangible–until after all these precious items are gone. Compiles all the information you need to know about digital asset transfer; pass on digital legacy, including what can and cannot be included in will transfer while given to loved ones.
Why are Digital Assets Important?
While there are many benefits to owning digital assets, one of the main reasons why they are becoming increasingly popular is because they provide a high level of security and privacy. Unlike physical assets like gold and silver, digital assets can be stored in a secure location online and can only be accessed by the owner.
Leaving Digital Assets Through Your Will
Though it may be intimidating, you should make a will that specifies what should happen to all of your assets, even digital ones. Without a will, your estate will be allocated according to legal procedures, which might leave loved ones out of the equation.
We advise maintaining a current inventory of your digital assets and how you can access them (albeit this inventory should not contain any passwords). Your executors will be able to spend less time trying to find everything.
When creating monetary or sentimental digital asset preparations, it is crucial to determine each asset’s value. A will is only valid if it is properly written and signed. The services of a will-writing company or a qualified solicitor can be invaluable if you need guidance in drafting your will.
Digital Assets That Can Pass Through Your Will
When you pass away, your estate will typically consist of all of the digital assets that you control and that are capable of being transferred to another party. Your will can decide who will get such digital assets after you pass away. Transfers of digital assets include, without a doubt, anything valuable in monetary terms, but they also contain things that may have a significant emotional value.
For Examples:
- PayPal Balance
- Amazon Balance or eBay Balance
- Bitcoin
- NFTs
Digital Assets That Cannot Pass Through Your Will
In all likelihood, most of your digital assets will not be distributed according to the terms of your will. Even if they have the actual benefit to you or your family, you cannot leave them in your will if you don’t own them or have the authority to transfer them when you die if you do. It is the case even if you have a valid will. Your email and social media accounts provide a shining illustration of this point. You have a license to use those accounts; you do not own them. The terms you agreed to open the account “clearly” limit your ability to transfer ownership of the account to another person.
For Examples:
- Email & Social Media Accounts
- Non-transferable Domains
- OTT Subscriptions
- Paid Apps
Executor's Access To Your Digital Assets
Even if none of your digital assets are to be distributed according to your will, your executor, who is the person who ties up your estate after you die, will probably need access to your digital assets. Your executor could require access to your digital assets to do the following:
- Paying Bills
- Distribution Of Properties
- Withdraw Money From Bank Accounts
However, if you do not provide login credentials, it will be challenging for your executor to gain access to the account, even though they may require it. Even if you’re using your will to grant your executor a durable power of attorney for digital assets, they will not have the legal ability to access the digital assets of a deceased person.
And in terms of how things work out, even in the few places where executors possess some legal authority, they will most likely run into stiff opposition from the businesses in charge of managing the estate’s money and files.
The most helpful thing you can do for your executor is provide detailed instructions and information about your online will transfer.
Is A Digital Estate Plan Necessary?
Your digital assets are managed efficiently using digital estate planning. Your selected digital executor will need this information to access the necessary credentials to manage your digital accounts.
Many aspects of modern life are handled digitally. However, suppose you haven’t taken the initiative to create a digital estate plan. In that case, your loved ones may have difficulty (or be unable to at all) gaining access to this data after your passing.
For example, If you forget your internet assets, the online service providers may remove or deactivate user accounts after a certain period of inactivity. Worse, there is money in your accounts, but your loved ones who need it won’t be able to access it. Digital estate planning also safeguards your assets from hacking, fraud, and identity theft.
What Happens If You Continue Using The Account Of A Deceased Person?
Consider the following scenario as an illustration: you have been entrusted with a dead person’s account. You are not transferring ownership of the account; you are using it as though the previous owner were still living. But then an issue arises, such as sensitive account information taken in some way. In such a scenario, a complaint can be filed in, and the account owner is responsible for defending the claim, which can be somewhat challenging.
Even under this worst-case scenario, there is still a possibility of transferring ownership; it just depends on the organization we’re talking about. However, the process will typically be significantly more time-consuming than the initial account transfer that you may have completed in the past.
Secure Your Digital Assets
While discussing the transfer of a deceased loved one’s digital assets is not something you would want to engage with in the immediate aftermath of their death, it is just as necessary as discussing the transfer of a deceased person’s physical assets. Although entering a password to gain access may look like a time-saving workaround, in most cases, it is well worth the effort involved in the long term.
You can have peace of mind knowing that your digital assets will be cared for properly in the event of your death or incapacity if you use digital estate planning software. Your loved ones will also benefit from this since they will no longer have to go through the trouble of transferring your digital assets.
Conclusion
When making wills and estate plans, most of us overlook our digital assets like cryptocurrency, digital wallets, and monetized digital content. It is time to acknowledge the value of our digital assets and factor them into our estate plans.
Using a reliable Digital Estate Plan lets you know exactly what will happen to your Digital Assets following your death or incapacitation. Family estate planning helps your loved ones as they are free from the hassle of transferring your Digital Assets. Now that you know why it’s necessary to secure your Digital Assets before death, safeguard them by creating an Online will transfer, inheritance planning, or Digital Estate planning.
We at Clocr ensure that all your digital assets are safe and secure. From creating an online will to planning for your digital estate, our efficient estate planning services help ease out things for the time when you will bid farewell to the world. Join Clocr today.
