Those who are savvy with their financial planning know the benefits of an estate plan. Not only does it help guide our assets when we pass, but it also serves as a valuable opportunity to discuss how we currently manage our assets. These days, the term “assets” means more than ever before. We now live in an age when this term includes non-tangible digital assets.
What are digital assets?
We are likely familiar with digital assets like stocks and bank accounts. Now, this term also extends to include a range from those with actual, monetary value (at least in theory) like cryptocurrency and nonfungible tokens (NFGs) to those with sentimental value like online picture storage platforms, social media sites, email accounts, and the like.
Do I need to do anything special to include these assets in my estate plan?
Like any other asset, there are certain steps to take to help better ensure digital assets are included within your plan. The exact process depends on the asset and your plan. Kiplinger recently published an article that provides some good advice and discusses specific examples. In general, the following tips will help:
- Organize. Make sure you have an organized list of what these assets are. We cannot properly plan for these assets until we account for them.
- Share. Make sure those who you wish to manage your estate are aware of these assets and have the information needed for access.
- Protect. Make sure this information is kept in a safe place.
You can use various legal tools to protect this information further and better ensure it is transferred per your wishes.