In today's digitally-driven world, a considerable portion of our lives resides online. From social media profiles to bank accounts, our virtual possessions represent a significant aspect of our identity and assets. But what happens to these digital possessions when we pass away? Enter the concept of a digital estate, a comprehensive set of guidelines and provisions for managing your digital assets after death.
Imagine a grieving family faced with a mountain of digital red tape when trying to access important documents or sentimental photos. Without clear instructions, they are left stranded in a sea of usernames and passwords. While the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) offers a legal three-tier process for accessing digital assets, planning ahead is essential. Here are four easy steps to help you tackle digital estate planning.
Step 1: Catalog Your Online Presence
Start by compiling a detailed inventory of your digital assets. This includes everything from online banking, social media profiles, email accounts, and any other platforms or services you use online. List the usernames, passwords, and security questions for each. Be thorough, and include instructions for any two-factor authentication you may have enabled.
Step 2: Determine the Fate of Your Digital Legacy
Just like physical assets, it's essential to decide what you want to happen to your digital possessions. Do you want certain accounts deleted, your photos shared with loved ones, or specific files passed on to certain individuals? Clearly outline your wishes, and ensure they are legal and in accordance with the terms of service of the various platforms.
Step 3: Appoint a Trusted Digital Executor
A digital executor is someone you trust to carry out your digital estate plan. This individual will need both the technical know-how and legal authority to manage your digital assets in accordance with your wishes. Your chosen executor should be aware of the RUFADAA and how it governs digital asset access, and you should explicitly name them in your will or trust.
Step 4: Safeguard Your Digital Estate Blueprint
Once you've established your digital estate plan, the next step is securely storing it. This may include using a secure digital vault service, entrusting it with a lawyer, or using a physical safe deposit box. Just as with your physical will, accessibility and security are paramount. Make sure your chosen executor knows how to access your digital estate plan when the time comes.
Digital estate planning is not just a matter of convenience; it's vital to safeguarding your legacy in the digital age. By taking the time to create a digital estate plan, you can ensure that your loved ones have a clear path to access and manage your online life with minimal fuss. Whether it's sharing cherished memories or handling financial matters, the thoughtful planning you do today will be a lasting gift to those you leave behind.
There are tools available to assist you with organizing and documenting your digital legacy plan. Do not hesitate to contact MGA, and we can share tools we have used with clients to successfully plan for this part of their future.
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Read more about the estate planning topics we’ve covered, like when to update your will or estate planning for blended families. Or, learn more about the advisory and consulting services we offer.
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