In the digital age, a person’s online presence has become an essential part of their life. Social media platforms like Facebook and Instagram, important photos stored in the cloud, and financial assets like cryptocurrency or virtual currency are now critical components of personal and financial identity. However, many people don’t consider what will happen to these digital assets after their death. Without a plan to protect and pass on these digital assets, loved ones can face legal complications and financial loss. Therefore, having a clear plan to secure and ensure the inheritance of digital assets is crucial.
What Are Digital Assets?
Digital assets refer to any information or resources stored or managed online. This includes online banking accounts, cryptocurrency, investment portfolios, emails, documents stored in cloud storage, social media accounts like Facebook, Instagram, and Twitter, as well as intellectual property such as blogs or patents.
Why Is Digital Asset Inheritance Important?
Beyond their financial value, digital assets often carry emotional memories, making them uniquely important. A well-planned digital inheritance can help avoid legal and financial complications while ensuring these assets are preserved.
Challenges in Managing Digital Assets
The unique and distinctive nature of digital assets presents specific management challenges. Many platforms impose restrictions on account access after death. Without passwords or encryption keys, accessing these assets becomes nearly impossible. Additionally, if individuals do not create an inventory of their assets during their lifetime, loved ones may not even be aware of their existence.
Steps for Planning Your Digital Assets
To start, create a comprehensive list of all your digital assets. This list should include the name of each account, username, password, and two-factor authentication (2FA) codes. Also, make sure to include the email address and phone number used for account recovery.
For security, use strong and unique passwords for every account. Enable two-factor authentication on all accounts and ensure sensitive data is protected through encryption methods.
To properly manage digital assets after death, a trusted and tech-savvy individual should be appointed as a digital executor. This person must be skilled in technology management and respectful of the wishes of the person appointing them. They should be provided with all necessary information and access to accounts in advance.
Clear instructions for managing digital assets should be outlined in a will. Specific management procedures should be provided for each asset. Login credentials or other relevant information should be stored in a separate document and referenced in the will. It is also essential to grant the digital executor legal authority to act on your behalf.
For complex and high-value assets, a trust should be established. This will ensure legal ownership of the assets, and a skilled trustee will manage these assets properly. Additionally, to ensure the protection and inheritance of digital assets, professional legal assistance should be sought. This will help secure the protection of digital assets.
Source: Times of India
