Many people consider only physical property, bank accounts and real estate to be assets when creating estate planning documents. Today, a lot of individuals own digital property, which may play an important role in their estate administration. Individuals should not overlook these assets during the planning process.
What are digital assets?
Digital assets can include items such as email, social media, online banking, cryptocurrencies, cloud storage and online business accounts. Many people also download and store media such as music, movies and videogames. Additionally, some gift cards, retail membership benefits and cash back bonuses might be stored online and represent significant cash reserves. Due to their non-physical nature, these items can create some challenges during estate distribution.
Digital assets may hold great value for people. Some may have financial value, while others may have emotional value for family members. Regardless of the value, everyone should address these assets as part of their estate plan.
Identifying digital accounts may be difficult
Digital assets, unlike traditional assets, are protected for privacy by passwords and user agreements. Family members also might not know that those accounts exist or have access to them.
Some online accounts may have specific policies regarding what happens when the account holder passes away. In some cases, a personal representative may need to coordinate with service providers to get access to digital assets and understand how to distribute them during estate administration.
Why does planning matter?
Digital assets are becoming an important part of everyday life, and they are also becoming more prominent in Arkansas estate plans. Personal representatives and family members may overlook digital assets during estate administration.
Keeping a record of online accounts and other access information may help simplify the process. Planning may help make sure that personal representatives manage and distribute digital assets according to the owner’s wishes. Seeking the guidance of a professional may help you better understand this aspect of estate planning.
