As our lives increasingly shift to the digital realm, safeguarding and managing your digital assets has become an essential aspect of estate planning. Online accounts, digital currencies, and even social media profiles have tangible value and personal significance that warrant careful consideration when developing a comprehensive estate plan. We, at Sovereign Planning, understand the growing importance of digital assets and are committed to providing tailored solutions and guidance to ensure that your online legacy is protected and managed according to your wishes.
In this informative guide, we will explore the concept of digital assets, discussing their relevance in the context of estate planning and the key elements to consider when incorporating them into your will, trusts, or lasting power of attorney arrangements. Topics covered will include identifying digital assets, their valuation, and tips for secure storage and access management. In addition, we will examine how professional assistance from Sovereign Planning can support the inclusion of digital assets in your estate planning process, ensuring a seamless and comprehensive approach.
Identifying Your Digital Assets
Digital assets encompass a wide range of online resources and properties that hold both financial and sentimental value:
1. Online Accounts: Email addresses, social media profiles, blogging platforms, and online marketplaces, among others.
2. Digital Currencies: Cryptocurrencies such as Bitcoin and Ethereum, as well as digital wallets, brokerage accounts, and online banking systems.
3. Digital Collectibles: Non-fungible tokens (NFTs), online gaming assets, and digital artwork.
4. Digital Documents: Electronic files, photos, videos, and any stored documents on cloud storage services or personal devices.
Valuing and Categorising Digital Assets
Establishing the value and importance of your digital assets is a crucial step in the estate planning process:
1. Financial Value: Digital assets with monetary worth include cryptocurrencies, digital wallets, and intellectual property rights for digital content.
2. Emotional Value: Social media accounts, personal blogs, and collections of digital photos and videos may hold significant sentimental value for your loved ones.
3. Utility Value: Online accounts for utilities, subscriptions, and memberships with recurring payments may continue to incur charges if not addressed in your estate plan.
4. Legal Importance: Digital files related to legal, financial, or medical matters necessitate careful management and secure storage.
Secure Storage of Digital Assets
Ensuring the safe storage and management of your digital assets is essential to prevent unauthorised access and potential loss:
1. Password Management: Use a reputable password manager to store and encrypt your login credentials, which can be shared with your chosen executor or attorney.
2. Encrypted Digital Vault: Safeguard your digital documents and files in an encrypted digital vault, which can securely store vital information regarding your digital assets and their locations.
3. Hardware Wallets: For particularly valuable digital assets, such as cryptocurrencies, consider using hardware wallets to enhance security and control.
4. Document Your Digital Inventory: Keep an up-to-date record of your digital assets, including account details, online service providers, and access instructions for your trusted executor, attorney, or beneficiaries.
Incorporating Digital Assets into Your Estate Plan
Developing a comprehensive estate plan that effectively addresses your digital assets requires thoughtful consideration and careful documentation:
1. Update Your Will: Amend your will to specifically include your digital assets, providing clear instructions for their distribution and management.
2. Create a Digital Assets Trust: Establish a trust designed to hold and manage your digital assets, ensuring they are meticulously managed according to your wishes.
3. Implement a Lasting Power of Attorney: Assign a knowledgeable attorney to handle your digital assets should you lose mental capacity, addressing matters such as the continuation or termination of online services, subscriptions, and social media accounts.
4. Consult a Professional: Seek guidance from experienced estate planning professionals who can advise on the management and protection of digital assets within your overall estate plan.
Conclusion
As our digital lives become increasingly intertwined with our physical existence, it is essential to address the management and preservation of digital assets within the estate planning process. Identifying, valuing, and securely storing your digital assets is the foundation for ensuring their inclusion in your will, trusts, or lasting power of attorney arrangements. By following best practices for estate planning, seeking professional guidance, and incorporating your digital assets into your overall estate plan, you can safeguard your online legacy, secure your digital valuables, and provide peace of mind for your loved ones.
Trust Sovereign Planning to help protect and manage your digital legacy as part of your comprehensive estate plan. Contact our experienced estate planning consultant today for professional guidance on incorporating digital assets into your wills, trusts, and lasting power of attorney arrangements in England and Wales.
