When you think about estate planning, you may picture your home, bank accounts or investments. However, you may also own property that exists online. This property can include cryptocurrency, social media accounts, cloud-based files, websites that earn income and digital photos or videos.
Many people now keep important financial and personal records online, sometimes across several platforms and devices. As a result, digital assets may become part of the estate that family members and executors will need to handle in the future.
Types of digital assets
Digital assets include accounts, records and property that exist online. Common examples include:
- Cryptocurrency in digital wallets
- Documents in cloud-based services
- Social media accounts
- Digital photos and videos
- Websites or online businesses
- Online banking or investment accounts
- Online media and subscriptions
Some digital assets have financial value, while others hold personal value for family members. In either case, they may not be easy to find. Unlike a house, car or bank account, online assets can be spread across several platforms and secured by passwords, security settings or other access controls.
Common challenges for families
The person handling your estate will need to find your assets and gather details about them. That process can become more difficult when important records exist online rather than in physical form.
Family members may know an account exists but still have trouble finding details linked to it. Digital assets can also be easy to overlook because they do not appear in a filing cabinet, safe or other physical place.
Some assets may require additional review before they can be passed on to beneficiaries. This may occur when an estate includes cryptocurrency, an online business or a website that generates income.
Digital assets and settling an estate
For many people, online property now makes up an important part of what they own. Financial accounts, business interests, photographs and personal records may exist mainly in digital form, even when they relate to assets in the physical world.
As technology continues to shape how people manage property and store information, online assets will likely remain an important part of estate planning.