Digital Estate Planning: Protecting Your Online Legacy

Securing your online presence is just as crucial as traditional estate planning. Digital estate planning involves managing what happens to your digital assets, including emails, social media accounts, and cryptocurrencies after you pass away.

In this guide, we help you explore practical tips, legal considerations, and proactive strategies to ensure a seamless transition for your digital estate.

What are Digital Assets?

Digital assets refer to any form of content or information that has value in a digital format. These assets are stored electronically and can include many files and data. Some of the examples of digital assets include:

• Media Files: Digital photos, videos, audio recordings, and multimedia content
• Documents: Electronic documents such as PDFs, Word files, spreadsheets, and presentations
• Cryptocurrencies: Digital currencies like Bitcoin, Ethereum, and other blockchain-based assets
• Websites: The digital content, code, and design of a website
• Software: Computer programs, applications, and digital tools
• Social Media Accounts: Profiles and content on platforms like Facebook, Twitter, Instagram, etc.
• Domain Names: Digital addresses used to identify websites on the internet
• E-books and Online Publications: Digital books and other written content that are distributed electronically
• Digital Art and Designs: Artwork, graphics, and designs created and stored digitally
• Data and Databases: Information and databases stored in digital formats

Difference Between Tangible and Digital Assets

Tangible assets are physical items with a concrete presence, while digital assets exist electronically. Here are some key differences:

Physical Presence

• Tangible assets have a physical presence and can be touched or seen.
• Digital assets lack physical substance and are stored electronically.

Storage Medium

• Tangible assets are typically stored in physical locations like warehouses or offices.
• Digital assets are stored on electronic devices, servers, or the cloud.

Accessibility

• Tangible assets require physical access to the location where they are stored.
• Digital assets can be accessed remotely through electronic devices with the necessary permissions.

Transferability

• Tangible assets may require physical transportation when transferred.
• Digital assets can be transferred instantly over electronic networks.

Value Representation

• Tangible assets often have a direct correlation between physical condition and value.
• Digital assets derive value from intellectual property, usage rights, and market demand.

What Constitutes Digital Estate Planning?

Have you noticed how practically everyone’s living their life online these days? It’s true! With so much happening on the internet, making sure your online stuff is safe through estate planning has become a must-do. Let’s discuss why looking out for your digital assets is a smart move in today’s digital world. With the increasing reliance on digital platforms and online accounts, including digital assets in estate planning has become essential. Here are seven critical aspects of digital estate planning:

1. Account Information

Create a comprehensive list of all your online accounts, including usernames, passwords, and necessary recovery information. Store this information securely, considering options such as encrypted password managers or a designated digital executor.

2. Digital Executor

Nominate a digital executor in your will or through a specific digital estate planning document. The digital executor manages and distributes your digital assets according to your wishes.

3. Access and Authorization

Understand the terms of service for various online platforms regarding access and transfer of accounts after death or incapacity. Specify your preferences for who should have access to specific accounts and data.

4. Memorialization and Deactivation

Provide instructions for how you want your digital presence handled after your passing. This may include memorializing social media profiles or deactivating certain accounts. Consider whether you want notifications sent to contacts upon your passing.

5. Data Backup and Storage

Ensure that critical digital files and data are regularly backed up and instructions for accessing backups are clear. Specify where backup devices or passwords to encrypted backups are stored.

6. Legal Documents

Integrate digital estate planning into your overall estate plan, including it in your will, trust, or a separate document. Consult with legal professionals specializing in estate planning to address your digital assets appropriately.

7. Regular Updates

Periodically review and update your digital estate plan to reflect changes in your online presence, accounts, or preferences.

Legal Framework and Regulations

The Arizona Revised Statutes on the Access to Digital Assets Act, Section 14-13106, outline procedures for disclosing a user’s digital assets.

Custodians can give full or partial access to a fiduciary or designated recipient. They may also provide a copy of the user’s digital assets if they could have accessed them while alive. Custodians can charge a reasonable fee for this service and are not required to disclose deleted digital assets.

If a user or fiduciary asks for specific assets, the custodian can refuse if it’s too difficult to separate them. In such cases, the custodian or fiduciary can go to court to request disclosure, specifying which assets they want, if any, or letting the court review all the assets privately.

Safeguarding Your Digital Assets: Brown & Hobkirk’s Expertise in Digital Estate Planning

Digital estate planning is crucial for securing your legacy. Brown & Hobkirk, your experienced estate planning lawyers in Arizona, stresses the importance of a strategic approach in dealing with digital assets. Our expertise highlights the need to stay ahead in the ever-changing digital landscape.

As expert estate planning lawyers, we emphasize the need for a thoughtful and comprehensive approach to digital estate planning. We have witnessed firsthand the complications that can arise without proper preparation.

Schedule a free consultation with us to ensure a seamless transition of your digital assets and protect the memories you’ve created online. Let’s work together to secure your digital legacy for future generations.