Blending Tradition and Innovation: Using Digital Assets in Your Value-Based Estate Plan

In today’s digital age, your estate plan is no longer limited to physical assets like real estate, bank accounts, and investments. Digital assets—including cryptocurrency, NFTs, online businesses, and even social media accounts—have become significant components of many people’s estates. Value-based estate planning provides an opportunity to ensure these digital assets are managed and transferred in ways that reflect your principles and priorities.

What Are Digital Assets?

Digital assets encompass a wide range of items, including:

• Cryptocurrency and NFTs: Bitcoin, Ethereum, and other blockchain-based assets.
• Online Businesses: E-commerce stores, blogs, or other revenue-generating websites.
• Social Media Accounts: Personal or professional profiles with sentimental or financial value.
• Digital Files: Photos, videos, manuscripts, or intellectual property stored online.

Why Include Digital Assets in Estate Planning?

1. Financial and Sentimental Value: Cryptocurrencies can have high monetary worth, while digital files and accounts often hold emotional significance.
2. Access Challenges: Without proper planning, heirs may face obstacles accessing these assets due to passwords or platform policies.
3. Preserving Your Legacy: Digital assets can play a crucial role in how your legacy is remembered and carried forward.

How to Align Digital Assets with Your Values

1. Document and Organize
   • Create an inventory of digital assets, including access credentials and security keys. Use a secure password manager to store this information safely.
2. Clarify Your Intentions
   • Decide how each asset should be managed or distributed. For example, you might want an online business to support a charity or a cryptocurrency wallet to fund future family needs.
3. Appoint a Digital Executor
   • Choose a trusted individual to manage your digital assets in accordance with your wishes.
4. Incorporate Digital Assets in Legal Documents
   • Update your will, trusts, or estate planning documents to reflect your digital asset strategy.
5. Consider Legacy Preservation
   • Use online tools to memorialize social media accounts or create digital archives of personal files for future generations.

Conclusion

By blending tradition with innovation, you can ensure your digital and physical assets reflect your values and contribute to your legacy. If you’re unsure how to start, connect with us to create a comprehensive value-based estate plan that incorporates your digital world.