Over the past decade, the need for a digital estate plan has grown exponentially as technology becomes integral to our daily lives. A traditional estate plan will not account for what happens to your digital assets or online presence after your death. Fortunately, you can create a digital estate to leave to your loved ones to meet your wishes. If you’re a business owner, it’s essential to have a digital estate plan to dictate how your company’s digital assets will be managed, transferred, or handled in the event of incapacitation or death to protect your legacy. Please continue reading to learn about the benefits of creating a digital estate for your business and how a knowledgeable Montgomery County Estate Planning Attorney can help you today.
What is a digital estate plan?
In today’s digital world, certain things we hold dear are not tangible. Many people choose to store their family photos and essential business information online. As such, taking the necessary steps to safeguard your digital assets is crucial. Any content that is stored in digital format is considered a digital asset. Digital assets can include any of the following:
- Email accounts
- Online banking accounts
- Social media accounts
- online subscription-based accounts
- Blogs and domain names
- E-commerce accounts (i.e., Amazon, eBay, etc.)
- Gaming accounts
- Cryptocurrency and NFTs
- Photos saved online
- Online accounts for utilities
- Loyalty program benefits
- Cloud storage
- Any other personal information you store on your computer or cellphone
With a traditional estate plan, you can only transfer property you own in a Will. Generally, most online accounts do not provide you with ownership rights. Therefore, you cannot move them to your heirs in your will as you do not own them. A digital will can address how you want your digital assets handled. It will protect your online assets from risks like identity theft, hacking, and fraud. You can designate a person to serve as your digital executor, who will manage your digital assets after you die.
How can it benefit my business?
A business owner must have a digital estate plan in place. The owner’s death doesn’t have to mean the end of the business. With a well-constructed digital estate plan, you can include your long-term goals for the company and assign individuals with specific duties to carry out these goals. This way, the business you put your blood, sweat, and tears into creating can prosper years after you’re gone.
The primary benefit of creating a digital estate plan is that by laying everything out in the plan, transferring ownership of your digital assets can go on without a hitch. If you’re considering creating a digital estate plan, please don’t hesitate to contact a skilled attorney from the legal team at JD Katz, who can help protect your business.
