But first, what are digital assets? Digital assets is a broad term that includes any information, accounts, or files stored electronically, either on a local device such as a phone or computer or online. Digital assets are included as part of your estate, but are rarely addressed in any detail, which can cause problems for your chosen administrator (i.e., your executor/trustee).
The first problem is finding the digital assets. Your administrator has to track down your digital assets, and they have no reason to do so if they don’t know the assets exist. Some things are obvious, like email, social media, and bank accounts. But other things are less obvious, such as digital wallets, websites, and, if you’re an author, your accounts with various distributors and publishing platforms. If the administrator doesn’t know you well, they won’t know to look for these assets, and even if they do, they may not know exactly what to look for. You can solve this problem by keeping a list of your digital assets (the ones that matter at least) so they know what’s worth tracking down.
The second problem is getting access. If the administrator doesn’t know your passwords, they’re going to have trouble getting in. And even if they have the passwords, getting the accounts updated to remove the deceased person’s name can often be problematic. It would be very helpful if you can find a safe way to share your passwords after you’re gone. An even better solution is to add a “digital assets clause” to your will or trust, which gives the administrator permission to access these accounts. With this clause, the service providers will know they have permission to work with the administrator and give them access.
The third and final problem is what to do with these assets. If you say nothing, the administrator will probably either shut the accounts down or let the assets languish, depending on the type of asset and where it’s stored. If there is something you want preserved and/or passed on, you need to address it in your will or trust.
If you want to know more about digital assets or how to deal with them, you are welcome to reach out to me at kaway@kawaylaw.com.
