Evolving Estate Planning Tips for Managing Digital Assets

Digital Currency Estate Planning Is An Evolving Field

In the digital age, estate planning has become more complex due to the increasing presence of digital currency that need to be planned for. Digital currency estate planning refers to cryptocurrency, stablecoins, and central bank digital currency. These assets also encompass a wide range of items, including online accounts, social media profiles, digital photos and videos, intellectual property, and more.

It is important to recognize that the value of digital assets can be both financial and sentimental. When you work with your experienced Florida estate planning attorney you can include provisions for the management, distribution, or preservation of these assets through digital currency estate planning to ensure that your digital legacy is properly created. Due to their unique nature, digital assets may require more strategic planning which your experienced estate planning attorney may assist you with.

As digital assets continue to become both more complex and more prevalent, let us share a few evolving tips for managing digital assets that we share with many of our clients today.

Tips for digital currency estate planning:

Start by taking a detailed inventory. Begin by creating an inventory of all your digital assets. This includes listing the platforms, accounts, and any associated login credentials. Keep this inventory updated and stored securely.

Review terms of service for each asset. This is a constantly evolving area and can be subject to change at any time, typically at the sole discretion of the company that created the digital asset. Familiarize yourself with the terms of service and user agreements of the platforms where your digital assets reside. Some platforms have specific provisions regarding the transfer or management of accounts upon the user’s death or incapacity although this is not the norm.

Give authority to your agent, your personal representative, and your trustee. You want to ensure each of these three individuals, or one individual depending on the nature of your estate plan, has the specific written authority to manage and dispose of your digital assets.

Create a central password manager for digital assets that are in your estate plan. Consider using password manager applications to securely store and manage your login credentials. Under the guidance of your estate planning attorney you may want to go a step further and provide your future decision maker with the necessary access credentials to this central password manager account. While this will include usernames and passwords, it may also include two-factor authentication methods.

Specify digital asset distribution. Work with your experienced estate planning attorney to clearly outline your wishes for the distribution or disposal of specific digital assets in your estate plan. This can include transferring ownership, deleting accounts, or preserving certain assets for sentimental or historical purposes.

Regularly review, update, and manage these accounts. Digital assets and online platforms evolve rapidly as opposed to the ownership and access to more traditional assets such as real property. Regularly review and update your estate plan to reflect any changes in your digital asset inventory, platforms, or preferences.

By incorporating these evolving digital currency estate planning tips, you can better manage and protect your digital assets, ensuring that your digital legacy is handled according to your wishes. Remember, working with your experienced Florida estate planning attorney in this area is critical to remain up-to-date with changing laws and technologies that could impact your goals for your digital assets.

We know this article may raise more questions than it answers. Our estate planning law firm takes a very different approach from what you might have come to expect. Our goal is to create lifelong relationships with each of our clients, to guide and manage your legacy for the rest of your life. Please contact our offices in Stuart and in Palm City to learn more.