If you have a will, you’ll have left instructions to deal with assets such as property, shares and cash.
But what about digital assets? These days, our lives are increasingly digital. We store photos, important documents, and financial records online. Many of us use social media, we have email accounts and various online services that require passwords to access. But what happens to these digital assets when we pass away?
Why Digital Assets Matter
Digital assets are valuable not only in a financial sense but also in terms of personal memories and information.
When you pass away, your executor (the person responsible for managing your estate) will need to access these digital assets to settle your affairs. If they don’t know where to find your passwords or how to access your online accounts, they might struggle to fulfill your wishes.
The Risks of not planning
Without proper planning, your digital assets could be lost or inaccessible. This can lead to several issues, such as:
- Lost Memories: Family photos and videos could be locked away in accounts that no one can access.
- Financial Complications: Online banking or investment accounts may go unnoticed, leaving funds unclaimed.
- Identity Theft: Unmonitored accounts can be vulnerable to hackers, potentially leading to identity theft.
How to Protect Your Digital Assets
To ensure your digital assets are handled according to your wishes, consider the following steps:
- Create a Digital Inventory: Make a list of your digital assets, including online accounts, email addresses, social media profiles, and cloud storage services. Include login details, passwords, and any security questions.
- Choose a Trusted Executor: Your executor should be someone you trust to manage your digital assets responsibly. Ensure they know where to find your digital inventory and how to access your accounts.
- Provide Clear Instructions: Leave specific instructions on how you want your digital assets to be handled. For instance, you might want your social media profiles memorialised or deleted, or you may wish for certain photos to be shared with family members.
- Use a Password Manager: Consider using a password manager to securely store all your passwords in one place. You can provide your executor with access to this manager, ensuring they can retrieve your information when needed.
- Include Digital Assets in Your Will: Make sure your will includes provisions for your digital assets. This can help avoid legal complications and ensure your wishes are legally recognised.
Conclusion
Digital assets are an important part of modern life, and they deserve careful consideration in your estate planning. By taking steps to manage these assets and providing your executor with the necessary tools, you can ensure that your digital legacy is protected and your wishes are respected.
We recommend seeking advice from an estate planning specialist. Please reach out if you need contacts in this area.
Keep Wealth Partners Pty Ltd (AFSL 494858)
This information is of a general nature only and may not be relevant to your particular circumstances. The circumstances of each investor are different, and you should seek advice from a financial planner who can consider if the strategies and products are right for you.
