Safeguard Your Digital Estate

In today's digital age, our online presence has become as vital as our physical belongings. Our digital footprint is extensive, spanning social media profiles to online banking, email accounts, and even cryptocurrency wallets. But what happens to all these assets when we can no longer manage them?

Enter the concept of a digital estate. Just as you would safeguard your home, car, and financial accounts, securing your digital assets is crucial. Here’s how you can take proactive steps to protect your digital estate.

What is a Digital Estate?

Your digital estate encompasses all the online accounts, digital files, and assets you’ve accumulated over the years.¹ This can include social media profiles, online banking and investment accounts, email, cloud storage, digital photos and videos, blogs, websites, and any other virtual property you own.

The value of these assets isn’t always monetary—often, they hold significant sentimental or operational value, such as family photos or business documents.

Neglecting to safeguard these assets can lead to complications for your loved ones in the event of your death or incapacitation. They might struggle to access essential accounts, face challenges with social media companies, or even lose access to valuable digital assets. By taking steps now to secure your digital estate, you can ensure your wishes are respected and make the transition smoother for those you leave behind.

The Importance of Digital Estate Planning

Digital estate planning includes organizing your digital assets and specifying how they should be handled after your death. Here’s why it’s essential:

Without proper planning, your loved ones may lack the credentials or legal authority to access your accounts. This can result in locked accounts, lost data, and unresolved financial matters.
Your digital estate may contain sensitive information that should not fall into the wrong hands. Planning helps ensure that your personal data remains secure and is only accessed by those you trust.
Digital estate planning allows you to ensure that sentimental items, such as photos, videos, and personal messages, are preserved and passed on according to your wishes.
If you own a business or have digital assets contributing to your income, planning ensures these assets can be managed or transferred without disruption.

How to Safeguard Your Digital Estate

Now that you understand the importance of digital estate planning, here’s how to get started:

Take Inventory of Your Digital Assets
Begin by listing all your digital accounts, including social media profiles, email accounts, cloud storage, financial accounts, and any other online services you use. Don’t forget about subscriptions, digital currencies, and intellectual property like blogs or websites.
Organize Your Digital Assets
Record important information such as usernames, passwords, security questions, and two-factor authentication details for each account. Consider using a secure password manager to keep track of this information safely.
Designate a Digital Executor
As you would appoint an executor for your physical estate, choose a trusted individual to manage your digital assets. This person should be tech-savvy and aware of your wishes. Ensure they have the legal authority to act on your behalf, which may require specific legal documentation.
Create a Digital Estate Plan
Work with an attorney to incorporate your digital assets into your will or trust.² Your plan should specify how you want each asset handled, including whether it should be transferred to someone else, archived, or deleted. Ensure that your digital executor is aware of this plan and knows where to find it.
Regularly Update Your Plan
Digital assets and passwords change over time, so it's important to review and update your digital estate plan regularly. Ensure that your inventory is current and that any new assets are included.
Communicate Your Wishes
Have a conversation with your loved ones about your digital estate plan. While this might be uncomfortable, they must understand your wishes and know where to find the necessary information.

By organizing your digital assets, designating a trusted individual to manage them, and creating a comprehensive digital estate plan, you can ensure that your online legacy is handled according to your wishes. For more information about how we can help you, contact our office. David DeMore, CFP®, MSFS, EA is a tax and wealth advisor serving clients in Brookfield, Mequon, Elm Grove, and Milwaukee.

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.