The last several decades have involved some of the most significant technological advances in all of human history. Most people now own cell phones that can take pictures and video, store electronic files, access the internet, and much more. You may use your cell phone, tablet, or computer to pay your bills, interact with friends and family on social media, communicate with colleagues via email, and complete many other responsibilities. Have you ever considered what will happen to this digital information if you become incapacitated or pass away? Through a comprehensive estate plan, you can account for digital items like photographs, files, and other electronic assets.

Start by Listing All of your Important Digital Assets and Expenses

Only about 40 percent of Americans have a will or any other estate planning tools in place. There are many different reasons that people procrastinate estate planning. Some are simply overwhelmed and unsure of where to even start. Planning for your digital assets can be especially challenging if you are not particularly “tech savvy.”

Fortunately, you do not need to be a computer expert in order to create an estate plan that accounts for digital assets. The first step you should take is to inventory all of the online accounts and files that are important to you. You may want to list your:

It seems that our reliance on computers and the internet grows stronger every day. If you are like most people, you probably use email, text messages, and social media to keep up with friends and family. You may pay your bills online, use your phone to deposit checks, and have loads of photographs stored on electronic devices.

Have you ever thought about what will happen to your digital life after you pass away? It is becoming increasingly important to include directions about digital assets in estate plans. Failing to account for these items in your will and other estate plans can cause your surviving loved ones unnecessary stress and expense.

Take Inventory of Your Digital Assets

It can be overwhelming to consider how your digital assets should be managed after you are no longer able to do so yourself. To get started, take inventory of all of your important accounts and files. Make a list of any:

If you have started the process of planning for your family’s future through a comprehensive estate plan, you have probably considered where many of your possessions will go. Perhaps your car will be gifted to a grandchild, while your home will be sold and the proceeds split between your children.

When deciding what will happen to physical property, many otherwise-dutiful estate planners forget about their digital assets. Have you considered what should happen to your personal documents and data stored online after you pass away? What about your social media accounts? The world is becoming more and more digitized with each passing day, and it is important we account for this in estate plans.

What Exactly Is Considered a Digital Asset?

If you have taken the time to create a will or any other instrument of estate planning, you are already better off than more than half of American adults. When drafting a will, most people consider most of their physical belongings along with investments or savings kept in the bank or at other financial institutions. Digital assets, however, often go overlooked, as many people do not even remember that they exist when they sit down to develop their estate plans. Some may not even know what digital assets are.

What Are Digital Assets?

Do you have a library of e-books from Amazon? What about a collection of songs from iTunes or apps from Google Play? These are some of the most common examples of digital assets. With the advancement of online technology, there are more types of digital assets today than ever before. In addition to e-books, programs, and music, digital assets also include pictures, data, visual designs, artwork, and online accounts for gaming, entertainment, and social media. If you have even one these types of assets—and since you are reading a blog right now, you probably do—it is important to develop a plan for dealing with them after your death.

When most people think about estate planning, their minds immediately turn toward dividing the tangible assets of a recently deceased person among his family members and loved ones. Such a concept is not inaccurate, but it does not really tell the whole story. Traditional assets like homes, cars, cash savings, and furniture, of course, must be accounted for in your estate plan, but what about considerations made possible by modern technology like digital downloads and your Facebook account? An experienced estate planning lawyer can help you address such concerns so that your privacy is fully protected along the way.

Digital Assets

If you use your computer, tablet, or mobile phone with any regularity, chances are good that you have at least digital assets. These may include songs and movies downloaded through iTunes, funds left in a PayPal account, or scanned financial documents electronically stored on your computer. With internet security becoming such a hot-button issue, it can be difficult for a family member—presuming that he or she knows about the asset in the first place—to log in, make changes, or delete the account.