Don't let your memories become lost logins: Intro to Digital Asset Planning

Digital memories you collect

Imagine a treasure chest filled with photos, documents, and messages that hold a lifetime of memories. Imagine that chest locked away in a digital vault, inaccessible to those you love most.

Now, imagine this chest has a timer, so if time runs out before they gain access to it, everything in it fades away forever… That's the reality facing many of us who haven't planned for our digital legacies.

What are Digital Assets? 

The digital age has transformed our lives, and our possessions are no exception. In the past two decades, digital assets - from cherished photos to social media accounts—have become increasingly valuable in our lives and are more than just financial records or cryptocurrency. They encompass emails with essential updates and documents, social media posts documenting life's milestones, and cloud storage brimming with cherished photos. These assets hold immense emotional value, connecting us to loved ones and preserving our stories.

Common digital assets include -

• Email accounts (Gmail, Yahoo!, etc.)

• Social media profiles (Facebook, Instagram, etc.)

• Cloud storage accounts (Dropbox, Google Drive, etc.)

• Digital Wallets (PayPal, Venmo, etc.)

• Business accounts (GoDaddy, Adobe, etc.)

Digital assets are often overlooked in traditional estate planning, mainly because they are a relatively new concept compared to traditional tangible assets like property or valuables.

Also, estate planning practices haven't fully caught up to the explosion of digital accounts we use today. In addition, a will becomes a public document. Hence you mustn’t include your login details there…

The risks of inaction: Data deletion policies

The average person has more than 160 digital accounts, each holding a piece of the puzzle we call ‘life’.

The risk of neglecting these assets is fundamental, as many service providers have inactivity policies that can lead to account deletion, wiping out irreplaceable memories.

The story of Caroline and Michael Monroe tragically illustrates the consequences of unpreparedness.

The complexity of paying forward non-tangible assets

The challenge lies in passing on these intangible assets. How do you grant loved ones access to cherished photos without giving them your login details now? How do you ensure specific content is deleted while preserving the rest? Your loved ones won’t even know where you have an account and what your account name is unless you take care of it for them.

This is where digital estate planning comes in. Laws regarding digital assets vary by state. Some, like California, which passed the Uniform Fiduciary Access to Digital Assets Act (RUFADAA), recognize the role of "Digital Executors," individuals authorized to access and manage digital accounts after your passing. Others do not. Even then, making plans ahead of time is prudent.

So, what should you do?

Integrate digital asset planning into your estate plan. This ensures your wishes are known and your digital footprint protected. Choose a digital vault (such as us :)) to create a digital legacy plan, designate heirs, and outline your wishes for each asset.

You could also write a note with all the details. However, there are security risks, as including login details in a physical note can be risky. There is also the risk of outdated information, given that login requirements/details change occasionally.

I founded WiziWill because this is a problem I care about. I’d happily answer any questions you may have, but please keep in mind I'm not a legal professional. 

This is also why my two cents are free of charge ;)

P.S.  Share this article with friends and family!  

Let's all work together to preserve our digital stories for future generations.