Common Obstacles of a Poor Digital Estate Plan
Digital assets must be protected, but this can create obstacles when someone dies without a plan for the future of those assets. Poor digital estate plans often cause as many problems as having none at all.
Lost Passwords
Your beneficiaries and family members probably don’t have your passwords, keys, and other credentials needed to access your digital assets. It’s critical to keep track of these items and update them regularly in your digital estate plan.
Data Encryption
Digital information, such as crypto and NFTs, is often encrypted to protect the owner of those assets. However, this poses a problem when someone passes away without a solid plan. Your digital assets should be stored in such a way that they can be easily accessed.
Data Privacy Laws
State and federal data privacy laws protect your digital assets, even after death. It can be difficult to obtain access to certain accounts without a clear estate plan. Social media, email, and online banking accounts are all protected by data privacy regulations.
How to Create a Digital Estate Plan
You shouldn’t bear the burden of estate planning for digital assets without the help of an attorney. Many challenges could lead to a complete forfeiture of your digital assets.
Take Inventory of Your Assets
To begin your digital estate plan, you should list your digital assets so that your family members know what you have and where to find them. Back up important information in the cloud or an online safe deposit box to protect it. You might even make hard copies of certain data.
Ensure They Can Be Accessed
You should include essential passwords and apps you use to transfer money, NFTs, cryptocurrency, and other assets. However, you should be careful listing this information. You don’t want hackers to access your digital estate plan and get into all your accounts. Apps and software could help protect this data as well.
Provide Legal Consent for These Assets
Include legal documents in your digital estate plan to allow your beneficiaries to access your assets. You could request specific documents from your banking institution, crypto company, retirement accounts, and other digital storage companies.
Appoint an Executor for Your Estate
You should have an executor for your physical personal property who could also serve as the leader of your digital assets. They should be named in your digital estate plan to avoid disputes over who has control when you pass away.