Digital Estate Planning: A Comprehensive Guide

Introduction
Take Inventory of Your Assets
Choosing a Digital Executor
Specify Your Wishes for Each Asset in Your Will
Considering Privacy Concerns
Update Your Will Regularly
Consult a Legal Professional
Conclusion
Why Choose the ELM Digital Asset Vault

Introduction

In today’s digital age, people increasingly use technology to store important information, treasured memories, and valuable assets. From social media and online financial accounts to digital photos and videos, these digital assets can hold considerable value for individuals and their loved ones. Such assets form part of your digital estate, and it’s essential to consider how they will be managed after death.

The purpose of a digital estate plan is to ensure that your digital assets are handled in accordance with your wishes and that your loved ones have the necessary access and information to manage these assets. Without a digital estate plan, digital assets can be lost or forgotten, and loved ones may face difficulties accessing or managing these assets.

In the UK, a digital estate plan can be included in your Will, outlining how your digital assets should be managed and distributed after your passing. Below are the steps to follow to include your digital assets in your estate plan:

Take Inventory of Your Digital Assets

Identify what counts as a digital asset: Digital assets can include any online accounts or services that are held in your name, such as email accounts, social media profiles, online banking accounts, cloud storage accounts, online investment accounts, digital currencies, digital media collections, and more.
Make a list of all digital assets: Start by making a comprehensive list of all your digital assets, including the name of the asset, the type of asset, the location of the asset (e.g., website URL), and any other relevant details.
Identify access and login credentials: Ensure that you have access and login credentials to all digital assets on your list. This may include usernames, passwords, security questions, and other necessary information to access each account.
Determine the value of each asset: For each digital asset, determine its value to include in your digital asset inventory. This could include its financial value, sentimental value, or value in terms of the data it contains.
Provide instructions for each asset: Provide instructions for each digital asset on your list, including how you want each asset to be handled after you pass away. This may include transferring ownership of the asset, deleting the asset, or providing access to the asset to your designated Beneficiaries.
Store your inventory securely: When it comes to safeguarding your digital asset inventory, it’s crucial to prioritise security and accessibility. Don’t settle for mere password-protected files, cloud storage, or safety deposit boxes – they may not provide the utmost protection. Instead, opt for a purpose-built storage solution like our Digital Asset Vault, designed specifically for the safekeeping of your digital assets.

By choosing the ELM Digital Asset Vault, you can rest assured that your valuable digital assets are stored in a highly secure environment. Say goodbye to worries about unauthorised access or potential data breaches. Our comprehensive storage service offers the peace of mind you need when it comes to protecting your digital legacy.

Remember to regularly update your inventory to reflect any changes to your digital assets. Keeping your inventory up-to-date ensures that your Executor has accurate information and can effectively manage your digital assets according to your wishes.

Choosing a Digital Executor

Understand the role of a digital Executor: A digital Executor is responsible for managing and distributing your digital assets after you pass away. This may include closing your online accounts, transferring ownership of your digital assets, or providing access to your digital assets to your designated Beneficiaries.
Choose someone you trust: Choose a digital Executor who is trustworthy and reliable. This person should be familiar with technology and have the necessary knowledge and expertise to manage your digital assets.
Determine their availability: Make sure that your chosen digital Executor is available and willing to manage your digital assets after you pass away. Consider their age, health, and other commitments when making this decision.
Discuss your wishes with them: Have an open and honest conversation with your chosen digital Executor about your wishes for your digital assets after you pass away. This may include providing instructions for how you want each asset to be handled or transferred and outlining any specific requests you may have.
Consider their location: If your digital Executor lives far away from you, consider how this may impact their ability to access and manage your digital assets after you pass away. You may want to consider appointing a backup digital Executor who is located closer to you.
Include them in your estate plan: Include your chosen digital Executor in your Estate Planning documents, such as your Will or Trust. Make sure that your digital Executor has access to your digital asset inventory and any necessary login credentials or instructions.
Review and update your choices regularly: Review and update your choice of digital Executor regularly to ensure they are still willing and able to fulfil their responsibilities. If your chosen digital Executor is no longer able to serve in this role, make sure to appoint a new one.

Specify Your Wishes for Each Asset in Your Will

Important – If using our Digital Asset Vault, you don’t need to specify these wishes in your Will. Your digital assets will automatically be distributed according to the wishes you have included during setup)

When specifying your wishes for each asset in your Will, it’s important to take the following steps:

Decide who should inherit each asset: Once you’ve identified your digital assets, decide who should inherit each asset. You can name a specific individual or individuals or create a general distribution plan that applies to all of your digital assets.
Provide specific instructions for each asset: Provide detailed instructions regarding how you want it to be managed after your death. For example, if you have a digital photo collection, you may want to specify who should have access to it, whether it should be deleted, or whether it should be archived.
Consider the legal implications: Depending on the type of asset, there may be legal implications to consider. For example, if you have cryptocurrency accounts, you may need to provide specific instructions for how they should be transferred or managed after your death. It’s important to consult with a legal professional who is familiar with digital assets to ensure that your wishes are legally valid.
Update your Will regularly: Digital assets can change quickly, so it’s important to update your Will regularly to ensure that your wishes are up-to-date and accurate. You should review your Will at least once every 3 years and update it as necessary to reflect any changes in your digital asset holdings or wishes.

By taking these steps, you can ensure that your Beneficiaries are aware of your wishes regarding your digital assets, and that these assets are managed according to your wishes after your death. For example, you may want to designate who should inherit your digital photo collection or give specific instructions for how your social media accounts should be managed. You may also want to provide instructions for the management of any blogs, websites or other online platforms. Remember, If you decide to use our Digital Asset Vault, all of this is done for you.

Considering Privacy Concerns

When considering privacy concerns related to digital assets in Estate Planning, here’s a step-by-step guide to follow:

Determine the level of privacy for each asset: Consider the level of privacy associated with each asset. For example, some assets may be publicly accessible, while others may be password-protected or encrypted.
Determine the level of access you want to grant: Consider whom you want to grant access to your digital assets. Do you want to grant full access to all your assets to a single Executor or Trustee, or do you want to grant partial access to multiple individuals?
Decide on the type of access: Consider the level of access you want to grant to your digital assets. For example, do you want to grant full access or only access to specific files or accounts?
Consider privacy laws: It is important to acquaint yourself with the privacy laws relevant to your digital assets. In the United Kingdom, a key regulation to understand is the General Data Protection Regulation (GDPR), which is predominantly governed by the Data Protection Act 2018 (DPA).
Consider encryption: If you possess sensitive or confidential digital assets, it is advisable to consider encrypting them. Encryption serves to safeguard your digital assets, maintaining their privacy and security. Our Digital Asset Vault incorporates triple encryption with AES-256-GCM, a level of encryption typically utilised for military and civil infrastructure.
Include specific instructions in your Estate Planning documents: Once you have considered all of these factors, include detailed instructions for granting access to your digital assets, including any necessary passwords or encryption keys.

By following these steps, you can help ensure that your digital assets are handled in a way that respects your privacy and that your wishes are carried out after your passing.

Update Your Will Regularly

Updating your Will regularly regarding digital assets is crucial for the following reasons:

Digital assets can change quickly: Digital assets can be created or deleted at any time, and your ownership or control over them can change. As a result, it’s important to update your Will regularly to reflect any changes in your digital asset holdings.
Your wishes may change over time: Your wishes regarding your digital assets may change over time. For example, you may want to designate different Beneficiaries or provide different instructions for managing your assets. Regularly updating your Will ensures that your wishes are up-to-date and accurately reflect your current wishes.
Legal and technological changes may impact your digital assets: Laws and regulations related to digital assets can change quickly, and technological advancements can impact how digital assets are managed or transferred after your death. By updating your Will regularly, you can ensure that your wishes are aligned with the most current legal and technological landscape.
Ensure that your digital assets are managed according to your wishes: By updating your Will regularly, you can ensure that your digital assets are managed according to your wishes after your death. This can help avoid confusion or disputes among your Beneficiaries and ensure that your digital assets are managed in a way that is consistent with your values.

Regularly updating your Will regarding digital assets is critical for ensuring that your wishes are accurately reflected, that any changes to your digital assets are accounted for and that your assets are managed in accordance with your wishes after your passing. Click here to read our comprehensive guide to updating your Will.

Consult a Legal Professional

Consulting a legal professional regarding digital assets and Estate Planning is becoming increasingly important in today’s digital age. Here are some key reasons why you should consult a legal professional regarding digital assets and Estate Planning:

Digital assets are often overlooked in Estate Planning: Many people fail to include their digital assets in their Estate Planning, which can lead to complications for their Beneficiaries.
Laws regarding digital assets are still evolving: An experienced legal professional can help you navigate these laws and ensure that your digital assets are properly accounted for.
Digital assets can be difficult to access: Without proper planning, accessing digital assets after someone’s death can be difficult or impossible. A legal professional can help you ensure that your loved ones will be able to access your digital assets when the time comes.
Protecting your privacy and security: A legal professional can help you protect your privacy and security by ensuring that your digital assets are only accessible to those you choose.
Tax implications: Digital assets can have tax implications that are different from physical assets. A legal professional can help you understand the tax implications of your digital assets and develop a plan to minimise any tax liabilities.

Consulting a legal professional regarding digital assets and Estate Planning can help you ensure that your digital assets are properly accounted for and that your wishes are carried out after your death. It’s important to work with someone who is experienced in this area and can help you develop a comprehensive plan that addresses all of your digital assets.

Conclusion

In conclusion, a digital estate plan is a critical aspect of modern-day Estate Planning. Digital assets hold significant value and need to be managed correctly to avoid complications for your loved ones. Creating a comprehensive list of your digital assets, selecting a trustworthy and knowledgeable digital Executor, and providing specific instructions for each asset in your Will are essential steps in the digital Estate Planning process.

Updating your digital asset inventory and your Will regularly is also essential to ensure that your wishes are up-to-date and accurately reflected. Consulting with a legal professional who is familiar with digital assets and the laws surrounding them is essential to ensure that your wishes are legally valid. By following these steps, you can ensure that your digital assets are managed according to your wishes and that your loved ones have the necessary access and information to manage them after your passing.

Why Choose the ELM Digital Asset Vault?

We have partnered with BePrepared, a trusted provider known for setting the industry standard in digital asset storage and protection, to create our secure Digital Asset Vault. By entrusting your digital assets to us, you can have peace of mind knowing they are protected and kept secure. Our service not only guarantees the safety of your assets but also simplifies and streamlines the storage process, offering a cost-effective solution which you can trust. For further information on our service, click here.