The pandemic sure did make many people think about getting their affairs in order, so their family isn’t left in a difficult position. Though the pandemic is over, everything has become digitalized, including formal documentation and asset management.
Estate planning now includes digital assets that are subject to privacy rules. It’s important to understand how digital assets are dealt with in the event of death.
Digital Assets Protection with Estate Planning
Digital assets are intangible assets existing online or through a digital service, such as virtual currencies, bank accounts, online reward programs, loyalty points, and credit cards.
The ever-growing exchange and usage of online data require careful planning and protection of your assets. You can protect your digital assets in the following way through estate planning:
- Keep an inventory of your digital assets and store them in a secure location.
- Decide what will happen to your assets in the event of your death. For instance, you may want some digital memories to pass to a family member or an income-generating asset to a spouse. Specify that in your will.
- Learn about privacy policies and protocols. The contractual terms and conditions govern what your executor can or cannot do.
- Assign an estate executor for all the assets, including digital ones. They’ll carry out your estate plan to manage your digital asset based on your will.
Role of Estate Planning in Managing Digital Assets
Estate planning helps manage your assets and wealth after your death. You can manage your assets in today’s digital age by following these essential tips:
- Create a will. It’s an important document that allows you to choose guardians, determine who receives what and how much and appoint an estate executor. If you die without signing your will, you die without a will. It’s important to make and sign a will in the presence of witnesses to ensure that your loved ones receive adequate provisions.
- Choose a trusted person as your attorney. Powers of attorneys allow an appointed person to make decisions on your behalf in case you lose your capacity.
- One way to manage your digital assets is to inventory your assets. Keep a record of your digital and physical assets. Use an estate binder to include all the correspondence and documentation.
- Given the unpredictability of life, it’s better to make your estate planning decisions on time. Don’t delay and update your will and trust from time to time to ensure your loved ones are taken care of even after your death.
Create your will and estate plan with our Litigation lawyer Brooklyn and probate lawyers in New York. Ledwidge & Associates, P.C. is a team of probate lawyer Bronx offering family law services in estate planning, will contest, estate administration, setting up family trusts, and more. Schedule an appointment today for further inquiries.
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