In last month’s newsletter, we talked about the monetary and sentimental value of digital assets, like Tiger Woods’ Tweets, your family’s online photo album, and banked airline miles. These intangible digital assets should be included in your estate plan. In this article, we will look at strategies you can use to protect these digital assets.

Why Can’t I Just Give My Family My Online Log-in Passwords?

You can! In fact, this is part of the two-step processfor protecting your digital assets. Step 1 is to inventory, designate who you want to be the beneficiary for each of your digital assets, and safely store this information.

1. Inventory Digital Assets & Designate Beneficiaries

Make a list. Just like you might write a letter to your family, specifying who gets your grandfather’s watch, a special painting, or that marble chess set; you can create a digital asset list. Write down the name of every online account, the URL, your username and password, and the answers to your security questions. Then specify who you want to be the beneficiary of each of your digital assets.

2. Safely Store Your Information

After collecting all your account details, be sure to put your list in a place for safe keeping. You may consider using a safety deposit box, or simply giving a copy of your list to a trusted family member or friend. It is advisable to include this list, along with other important letters and papers, in a folder that gets stored with your other estate planning documents.

Alternatively, there are inexpensive password management programs, such as 1Password and LastPass, that serve as databases, where you can store your login and security credentials for every website and service you use. They typically offer one master password to access your information; and this password can be stored along with your important estate planning documents.

How Can I Prepare A Digital Estate Plan?

Step 2 of the two-step process for protecting your digital assets, is to designate a Digital Executor, and incorporate your wishes into your estate planning documents.

1. Designate A Digital Executor

A Digital Executor is often a spouse, child, parent, or other trusted individual. They will take full responsibility for your digital assets, based on your predefined instructions. They will have legal access to your online accounts, the ability to delete accounts, archive accounts, post information to these accounts, and distribute ownership and benefits, of these accounts.

The Digital Executor and the Executor of your estate can be, and often are, the same person. However, it is advisable to choose a person who is tech savvy. They need to be comfortable navigating the Internet, logging into online accounts, updating information, downloading information, and changing credentials.

2. Secure your Digital Estate Plan

As we discussed last month, most states, have enacted laws governing digital assets. The law is commonly referred to as the Uniform Fiduciary Access to Digital Assets Act (UFADAA); or the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). These laws provide a legal framework for managing digital assets of deceased or incapacitated people.

Remember, each state has different laws regarding how to plan for digital assets. It is important to consult with us to make sure that your plans for your digital assets are in order.