In today’s world, our lives are increasingly digital. From cherished family photos stored online to banking accounts accessible through an app, the shift to digital living is undeniable. But what happens to these assets when you’re no longer here? Despite the growing importance of these digital assets, many people overlook what will happen to them after they pass away. Without proper planning, this can lead to confusion and even the loss of valuable items that mean a lot to your loved ones.
Digital estate planning in Bloomington, MN helps ensure that your online assets—like your emails, social media accounts and digital photos—are managed according to your wishes after you’re gone. According to Kiplinger, it’s just as important as making plans for your physical belongings, like your house or bank accounts. This article explores how you can protect your digital legacy with proper estate planning.
Watch the interview with Attorney Philip Ruce of Stone Arch Law Office about digital estate planning on WCCO/CBS Minnesota. He covers everything individuals need to be aware of, from what it is and why it’s important to specific steps on how to protect digital assets.
What is Digital Estate Planning?
Traditional estate planning typically covers assets such as a house, heirlooms, money, investments, brokerage accounts, etc., and lays down rules on how these should be managed and coordinated. It provides guidelines on how these assets should be distributed, who should receive them, and when.
Digital estate planning is similar to traditional estate planning, but with some added complications. This is mostly because online accounts are protected by passwords, encryption, and dual-factor authentication, among other things.
What Are Digital Assets?
Before creating a digital estate plan, it’s essential to understand what counts as a digital asset. These include:
- Encrypted Content: Password-protected data or dual-factor authenticated systems.
- Email Accounts: Personal and professional emails, as well as the data stored within them.
- Social Media Profiles: Platforms like Facebook, Instagram, or LinkedIn.
- Photos and Videos: Media stored on phones, computers, or cloud services.
- Financial Accounts: Online banking, investment accounts, and even cryptocurrency.
- Digital Subscriptions: Services like Netflix, Spotify, or Amazon.
Why Does Digital Estate Planning Matter?
Failing to include digital assets in your estate plan can lead to several challenges for your loved ones:
- Fraud Prevention: The AARP reports that millions of deceased individuals’ identities are used for fraud annually. Without clear instructions, your family may struggle to close accounts, leaving them vulnerable to misuse.
- Practical Management: From stopping automatic bill payments to securing access to online accounts, the lack of a digital plan can create unnecessary stress for your loved ones.
- Legal Compliance: Minnesota has laws governing the access and management of digital accounts after someone passes. Working with a knowledgeable estate planning attorney ensures compliance with these regulations.
Steps to Protect Your Digital Assets
1. Inventory Your Accounts
Start by listing all your online accounts, passwords, and related information. Tools like LastPass or Dashlane can help securely store this data during your lifetime, ensuring it’s accessible to your designated representative.
2. Appoint a Digital Executor
This person will manage your digital estate. Unlike a traditional executor, a digital executor needs the technical know-how to navigate online platforms. Minnesota law supports the appointment of such representatives, ensuring they have the necessary authority.
3. Define Your Wishes for Your Digital Assets
Clearly document what you want to happen with each type of account. Should your social media be deleted, memorialized, or passed on? Should your heirs inherit cryptocurrency, or should it be liquidated?
4. Work With an Estate Planning Professional
Digital estate planning can be a confusing venture, and oftentimes, little but important details are overlooked. Engage with an estate planning attorney familiar with digital assets. Our team at Stone Arch Law Office ensures that all authorizations comply with Minnesota state and federal laws, protecting your digital legacy.
Keeping Your Digital Estate Plan Updated
Your digital presence evolves constantly. New accounts, updated passwords, and changing preferences mean your plan should be reviewed regularly. A routine check of your online accounts and digital estate plan, as well as your comprehensive estate plan, ensures they align with your current circumstances and legal requirements. Read more in our article, Why Updating Your Revocable Trust Is Essential After a Major Purchase
Digital Estate Planning in Bloomington: Start Today
Whether it’s securing family photos, managing online subscriptions, or distributing cryptocurrency, a digital estate plan ensures your assets are handled according to your wishes. For Bloomington, MN residents, Stone Arch Law Office offers personalized support to make this process smooth and efficient. Don’t leave your digital legacy to chance. Book a call with the team at Stone Arch Law Office to create or update your digital estate plan.
Key Takeaways:
- Protect Your Legacy: Secure your digital assets for future generations.
- Prevent Confusion: A clear plan eases the burden on loved ones.
- Work With Estate Planning Professionals: Ensure legal compliance and proper management of your digital estate.
