Estate Planning and Digital Assets

April 19th, 2024
Posted By
Sarah M. Litowich
vector image of computer screen with representations of digital assets and estate planning
Much of our time is spent online — and you will likely accumulate a significant amount of digital assets during your lifetime. While you may be thinking about who will inherit your home or family heirlooms, it’s critical to be aware that digital assets must be considered just like any other type of asset when it comes to estate planning. Importantly, if you do not include digital assets in your will or trust, your loved ones may not have access to them after your passing. It’s essential to identify the digital assets you own and properly account for them in your estate plan.

What are Digital Assets?

Digital assets are any intangible assets that are created and stored digitally on a device. They can be stored online, in your smartphone, on your computer, or in the cloud. Digital property can encompass not just those that are personal or sentimental in nature, but they can also be financial or business assets. These assets are typically protected by private passwords for security purposes — and this must be accounted for in your estate plan. Specifically, the digital assets that are commonly bequeathed in a last will and testament can include the following:
  • Email accounts
  • Social media profiles
  • Music collections
  • Cloud data
  • Digital photos
  • Online financial accounts
  • Digital subscriptions
  • Cryptocurrency holdings
  • Non-fungible tokens (NFTs)
  • Airline miles
  • Domain names
  • Websites
  • Digital subscriptions
Although your online financial accounts and platforms may be categorized as digital assets, it’s vital to understand that the funds in them are not. These must be identified and addressed separately in your estate planning documents. Similarly, while the platform of a cryptocurrency account would be considered a digital asset, the underlying asset itself would be part of the overall estate.

Oregon Law Allows You to Give Control of Your Digital Property to an Authorized Representative

In 2017, the Revised Uniform Fiduciary Access to Digital Accounts Act went into effect in Oregon. This statute allows an individual to give control of their digital assets to an authorized representative who can access and manage them in the event of death or incapacity. Prior to the passage of this law, online service providers were not legally required to follow a person’s directives regarding their digital assets. However, the use of this law is limited without a valid will, trust, or power of attorney in place. It’s crucial to have legally enforceable instructions regarding the disposition of your digital property. You should also revisit these documents periodically to ensure they still meet your estate planning goals. If you have not given specific authority to an appointed fiduciary, the provider’s terms of service would control what happens to your digital property.

Including Digital Assets in Your Estate Plan

It’s imperative to ensure a trusted person has access to your online assets by addressing them in your estate plan. If arrangements aren’t made in advance regarding digital assets, vital information can be lost forever. The first step in ensuring your digital assets are accessible in the event of your passing or incapacity is taking inventory of what you actually own. Significantly, some types of digital property might only include the rights to access them — if you don’t own the assets, there may be limits to what you can do with them. Next, you should consider who you would like to receive each digital asset and appoint an executor for the assets. The executor will be the person who has access to all your online accounts and responsible for ensuring the digital assets in them are distributed in accordance with your wishes. The beneficiaries and executor must be named in your last will and testament. Record the passwords, security questions, and log-in credentials for each account. Be sure to leave them in a place where your loved ones will know they can find them. You should also write down the passwords for your computer, phone, or any other device where the assets are stored. In addition, if two-factor authentication is used, make sure you account for access to the devices that are needed. Critically, without giving your executor access to your social media accounts, the cloud, or other online storage services, your family photos could be lost forever. By including digital property in your estate plan, you can ensure your legacy is safeguarded and your memories are protected. In the event you would prefer certain digital assets to be destroyed upon your passing, this must be specified in your will or other estate planning documents.

Contact an Experienced Oregon Estate Planning Attorney

If you own digital property, a skillful attorney can assist you with identifying these assets and ensuring they are properly addressed in your estate plan. Based in Salem, Litowich Law provides clients throughout Oregon with knowledgeable counsel for estate planning matters, including those involving digital assets. We welcome you to contact us to schedule a consultation to learn how we can help.
Categories: Estate Planning