Digital assets play a growing role in estate planning, yet they are often overlooked. These assets include everything from online bank accounts and social media profiles to cryptocurrency and digital photos.
Planning for digital assets ensures that loved ones can access and manage them effectively after someone passes away.
What are digital assets?
Digital assets include any electronically stored content or accounts that require usernames and passwords. Examples include online bank or investment accounts, email and social media accounts, cryptocurrencies like Bitcoin or Ethereum, subscription services, rewards programs, and digital photos, videos, or documents.
Without a clear plan, these assets may become inaccessible, lost, or deleted.
Virginia’s laws on digital assets
Under Virginia’s Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), individuals can authorize someone to manage their digital assets after death. This authorization allows designated fiduciaries, like executors or trustees, to access accounts or digital files. Without this permission, service providers may deny access, leaving these assets untouchable.
Steps to include digital assets in an estate plan
To effectively plan for digital assets, individuals should:
- Take inventory of all digital accounts and assets, including login credentials.
- Authorize access through legal documents, such as wills, trusts, or power of attorney forms, specifying who can manage the assets.
- Store passwords securely in a password manager, ensuring authorized individuals can retrieve them.
Many online platforms also provide tools to set account preferences for after death.
The importance of protecting digital legacies
Including digital assets in an estate plan ensures they remain protected and accessible. In Virginia, the RUFADAA provides a legal pathway to manage these accounts, preventing complications or loss. Proper planning allows loved ones to handle digital property effectively and preserves important aspects of a person’s life.