What happens to digital assets after you die?

What happens to digital assets after you die?

| Jul 5, 2021 | Estate Planning

Digital assets include social media accounts, cryptocurrency, and non-fungible tokens (NFTs). According to Tech Crunch, digital assets are often overlooked during estate planning. This can leave wealth in limbo as family and legal teams struggle to gain access to what the deceased had in their possession at the time of death.

Fortunately, there are steps you can take to ensure your loved ones can access your entire estate. Here are a few things you can do now to ensure a seamless transfer of your assets.

Make sure passwords are accessible to loved ones

Both NFTs and cryptocurrency require special passwords, known as keys, to gain access. Without these passwords, these assets are inaccessible to anyone except the owner. Make sure your family can find passwords for any digital assets you have. Use of a password manager can keep essential information organized and accessible in the event of your death.

Store assets in a digital wallet

Digital wallets are an efficient way to keep non-fungible assets. Digital wallets can also keep your passwords safe, secure, and accessible by authorized individuals. Many digital wallets also offer end-of-life features, which become active after your death.

Create a list of digital assets and update it as needed

Your family might not know about digital assets you have. In this case, keep a copy of these assets along with other estate planning documents, such as information regarding wills and trusts. Make sure your family members are aware of the location of these documents. You should also make your attorney aware of their location.

As digital assets become more relevant, the need to protect them via estate planning will become second nature. While intangible assets are complex, their value makes them very attractive as an investment vehicle.