In the age of information, our lives extend far beyond physical possessions, making it essential to secure our legacies in the online realm as well.

That’s where a digital estate plan comes into play. Unlike traditional estate planning that focuses on tangible assets, digital estate plans tackle the complexities of the online world. Let’s discuss what is generally included in this plan and the basics of how to create one.

Why do you need a digital estate plan?

The digital landscape is constantly evolving, and neglecting to plan for your online legacy can create a myriad of problems for your loved ones. Even if you have a traditional will, they might not have access to cherished photos, financial accounts, or important documents stored online if they don’t have your login credentials or account details. A digital estate plan can specify how these accounts should be handled, minimizing potential confusion and legal battles.

What is included in a digital estate plan?

In the past, a person could hold and manage nearly all they possessed through their estate; today, the use of technology and the internet makes the process far more intricate. While creating a digital estate plan, there are three types of assets you should focus on—financial, sentimental, and administrative. These consist of but are not restricted to:

• Online bank accounts
• Social media profiles
• Contact databases
• Email accounts
• Phone libraries and storage
• Digital pictures, books, music, and videos
• Cloud-based storage
• Cryptocurrency
• Names of domains
• Accounts for online stores

It’s important to note that the funds in any of these accounts are not considered digital assets—just the accounts themselves are.

How do you create a digital estate plan?

Now that you understand the importance and scope of a digital estate plan, the next step is to explore how to put one together. While this process may vary from person to person based on individual circumstances and needs, there are three general phases you’ll want to follow. Moreover, your plan can provide information and instructions for assets you don’t own but would still need managed or closed after you pass, such as social media profiles or email accounts.

List your account details
Make a list of all your online accounts, complete with usernames, passwords, and any recovery information required. Setting up an encrypted password manager or organizing the details in a spreadsheet are just two of the numerous solutions available to accomplish this. However, do not include this list of information in your traditional will since it would become public after you pass. Instead, consider leaving it on a flash drive in a safe deposit box or in another secure place.

Put your wishes in writing
As with a traditional will, you’ll want to have your intentions for your digital assets written out clearly. Some states may consider a digital estate plan to be informal unless it is a legal will or addendum to a will. Be as specific and clear as possible, and take careful consideration with assets like websites or online storefronts that have monetary value or generate revenue. Do not forget to check the service provider’s policies, user agreements, or custodial tools to ensure that your plan complies their regulations and requirements about how assets can be accessed, transferred, or closed upon a user’s death. For more guidance in creating or formalizing this document, contact a trusts and estates attorney and a financial advisor, who can ensure everything is set up correctly.

Assign a digital executor
A digital executor is a trusted person you name in your will to handle your online accounts and digital assets. Ideally, the person you choose should be tech-savvy, comfortable with handling online accounts, and understanding of your preferences for your digital estate plan while making decisions aligned with your values. Inform your chosen digital executor about the location of your plan and discuss your requests with them in detail, confirming that they clearly understand their responsibilities.

It’s never too early to secure your digital legacy and ensure your online world is handled with respect and care according to your wishes. Consider consulting with a legal or financial advisor for personalized guidance in crafting a robust digital estate plan that can empower your loved ones and safeguard your online presence after you’re gone.