Part of estate planning is deciding who will receive your assets after you die or become incapacitated. It involves determining how an individual’s assets will be preserved, managed and distributed after death.
However, one thing most people fail to consider is their digital assets.
What qualifies as a digital asset?
A digital asset is any type of content or media that exists in a digital form and can be accessed and used by electronic devices such as computers and smartphones. Some examples of digital assets include:
- Images, such as photographs, illustrations, logos or icons
- Videos and documents
- Audio in the form of music tracks, sound effects, or voice recordings
- Social media accounts, including your profile and handle
- Websites, including domain names, web pages or blogs
- Cryptocurrencies, such as Bitcoin
Individuals and businesses value digital assets, which can be bought, sold, traded and licensed in the same way that physical assets can. One of the most common concerns involving digital assets is cryptocurrency. Cryptocurrencies are digital currencies secured by cryptography via blockchain technology. They can be used to purchase goods and services or exchanged for other forms of currency, and such assets can be quite valuable.
Making digital assets a part of your estate plan is essential because they may have significant financial or sentimental value, and you want to ensure that they are appropriately managed and transferred after your death. Take inventory of all your digital assets, including usernames, passwords, and any other relevant information.
You may want to consider designating a specific person to be responsible for managing your digital assets after your death. This person should have the technical skills and knowledge to manage your digital assets effectively.