Some people hold significant assets in online accounts, digital currencies, and virtual properties. Managing digital assets has become an essential aspect of estate planning and administration. 

Wide Range of Assets

Executors, the individuals responsible for carrying out a will, must be prepared to handle a wide range of digital assets that can include anything from online financial accounts, such as bank accounts, investment portfolios, and cryptocurrency wallets, to social media profiles, email accounts, and even digital photos and documents stored in the cloud.

Managing digital assets effectively requires a clear understanding of what these assets are, where they are located, and how they can be accessed. For instance, online banking and investment accounts may contain substantial financial resources that must be properly transferred or liquidated as part of the estate settlement process. 

 Cryptocurrency Transfers

Cryptocurrency, in particular, can be challenging to manage due to the need for secure access to digital wallets and the unique legal and tax considerations surrounding these assets. Without the proper credentials or private keys, digital currencies can be lost forever, making it critical for the testator (the person making the will) to document access information securely.

Social Media Profiles

While social media profiles are not typically of financial value, they can have significant emotional or sentimental worth. In some cases, these profiles may generate income through advertising or content creation, necessitating their management as part of the estate. 

Executors may need to close or memorialize these accounts according to the wishes of the deceased and handle any digital content associated with these platforms.

Brand Rights

Furthermore, digital assets like domain names, blogs, or online businesses can hold substantial value and require careful management. Following the will, these assets may need to be transferred to beneficiaries, sold, or disposed of. 

Personal Representative Responsibility 

Executors must be aware of the specific terms of service agreements for each digital platform, as these can dictate how accounts and assets are handled upon the account holder’s death. For example, some platforms may allow for account transfers, while others may automatically delete accounts upon notification of the user’s death.

The Estate Planning Imperative 

Individuals must include detailed instructions in their estate planning documents to ensure digital assets are managed according to the deceased’s wishes. This may involve creating a digital estate plan that outlines all online accounts, digital assets, and access information and provides clear instructions on handling these assets. 

Without such a plan, executors may face significant challenges in locating, accessing, and managing digital assets, which could lead to the loss of valuable property or the mishandling of sensitive information.

Learn and Organize

As the number of digital assets continues to grow, individuals need to take proactive steps to organize and document their digital estate. 

Executors, in turn, must be equipped with the knowledge and tools to manage these assets effectively, ensuring that the deceased’s digital legacy is preserved and distributed according to their wishes.