In today’s digital world, planning for your digital afterlife is just as important as planning for your physical estate.
As someone who has navigated the complexities of digital and traditional legacy planning,
I can tell you from experience that having a digital legacy plan is essential.
Imagine losing access to treasured photos, important emails, or even valuable cryptocurrencies because no one knows how to retrieve them.
Scary, right?
In this post, you’ll learn:
- What digital legacy planning is
- What counts as digital assets
- How to communicate your digital legacy plan effectively
So, if you want to ensure your digital life is taken care of after you’re gone, keep reading.
What is Digital Legacy Planning?
Digital legacy planning is all about managing your online presence and digital assets after you pass away.
Think of it as an extension of traditional estate planning but for your digital life.
In today’s world, we all have a significant digital footprint, which includes social media accounts, emails, digital photos, cryptocurrencies, and even online subscriptions.
These digital assets hold both sentimental and financial value, making it crucial to plan what happens to them when you’re no longer around.
At its core, digital legacy planning involves identifying your digital assets, deciding how you want them handled, and documenting these wishes clearly.
For example, you might want your family to have access to your digital photos or you might prefer certain accounts to be deleted.
Without a plan, your loved ones could face difficulties accessing or managing these assets, potentially losing valuable memories or financial resources.
Digital legacy planning also includes appointing a digital executor.
This is someone you trust to carry out your digital wishes, much like an executor for your traditional will.
They will be responsible for managing and distributing your digital assets according to your instructions.
Why is this important?
Well, without proper planning, your digital assets might be left in limbo.
Many online service providers have their own policies regarding what happens to accounts when a user dies, and without your input, these decisions might not align with your wishes.
For instance, some platforms might permanently delete an account after a period of inactivity, while others might restrict access to your family members.
What are Considered as Digital Assets?
Digital assets encompass a wide range of online and electronic resources that you own or have rights to.
These can be broadly categorised into several types, each holding unique value and requiring different management approaches.
1. Social Media Accounts
- Platforms like Facebook, Twitter, Instagram, and LinkedIn.
- These accounts often contain personal photos, messages, and connections that might have sentimental value.
2. Email Accounts
- Services such as Gmail, Yahoo Mail, and Outlook.
- Emails can hold important personal and financial information, as well as correspondence with loved ones.
3. Digital Photos and Videos
- Stored on cloud services like Google Photos, Apple iCloud, or local storage.
- These media files are precious memories that your family may want to access and preserve.
4. Cryptocurrencies and Digital Wallets
- Bitcoin, Ethereum, and other cryptocurrencies.
- Digital wallets and exchanges where these currencies are stored, like Coinbase or Binance.
- These assets have financial value and require secure management.
5. Online Financial Accounts
- Online banking and investment accounts.
- PayPal, Venmo, and other payment services.
- These accounts often hold significant financial resources.
6. Subscriptions and Memberships
- Streaming services like Netflix, Spotify, and Amazon Prime.
- Online memberships to clubs or professional organisations.
- These accounts might need to be cancelled or transferred.
7. Digital Documents and Files
- Stored on cloud services such as Google Drive, Dropbox, or OneDrive.
- Important documents like contracts, business records, or personal writings.
8. Websites and Domain Names
- Personal or business websites.
- Domain names registered through services like GoDaddy or Namecheap.
- These assets might have commercial value or serve personal interests.
9. Online Gaming Accounts
- Accounts on platforms like Steam, PlayStation Network, or Xbox Live.
- These might include game libraries and in-game purchases.
10. Intellectual Property
- Blogs, ebooks, music, or other digital content you have created.
- Rights to these creations, which can have both sentimental and financial value.
Understanding the breadth of your digital assets is crucial for effective digital legacy planning.
Each type of asset might require different steps to ensure they are managed according to your wishes.
For instance, you might want to leave your digital photos to family members but close your social media accounts.
By thoroughly cataloguing your digital assets, you can create a comprehensive plan that covers all aspects of your digital life.
This ensures that your digital legacy is preserved and managed in the way you envision, providing peace of mind for both you and your loved ones.
Communicating Your Digital Legacy Plan
Once you’ve created your digital legacy plan, the next crucial step is to communicate it effectively to ensure your wishes are honoured.
First, appoint a trustworthy digital executor.
This person should be tech-savvy and reliable, capable of managing your digital assets according to your instructions.
Clearly document their responsibilities and provide them with the necessary access to your digital accounts.
It’s essential to ensure that your chosen executor is aware of and agrees to their role.
Documenting your wishes is another key step.
Create a detailed record of your digital assets, including usernames, passwords, and specific instructions for each account.
Tools like password managers, such as LastPass or 1Password, can securely store and share this information with your digital executor.
Specify your preferences for each asset, for example, which social media accounts should be memorialised, deleted, or transferred.
It’s important to inform key individuals about your digital legacy plan.
Share the existence of your plan with trusted family members and friends, ensuring they know who your digital executor is and how to contact them.
While you don’t need to share sensitive details, providing them with a basic understanding of your wishes can be very helpful.
Including digital asset instructions in your will or estate plan is also vital.
Consult with a legal professional to ensure these instructions are legally binding and comply with relevant laws.
Some jurisdictions may not fully recognise digital assets in traditional wills, so a specialised digital will might be necessary.
Consider using digital legacy services like Google’s Inactive Account Manager or Facebook’s Legacy Contact to automate part of the process.
These services allow you to pre-define what happens to your accounts if they remain inactive for a certain period, providing an additional layer of security and assurance.
Regular updates to your digital legacy plan are essential, as digital assets can change frequently.
Review and update your plan regularly, and keep your digital executor informed about any significant changes to your assets or instructions.
Provide clear instructions in your digital legacy plan, using simple, understandable language.
Avoid jargon or overly technical terms that might confuse your executor or family members. This clarity will ensure your wishes are easily understood and followed.
Finally, have open conversations with your loved ones about your digital legacy plan.
This can prevent misunderstandings and ensure everyone is on the same page. Address any questions or concerns they might have, and be clear about your reasons for specific decisions.
These discussions can make a significant difference in how your digital legacy is handled and remembered.
Conclusion
Wrapping up, digital legacy planning might seem like a modern hassle, but it’s a crucial part of managing your estate in today’s digital age.
We’ve covered what digital legacy planning is and explored the wide variety of digital assets—from social media accounts to cryptocurrencies—that need your attention.
We’ve also discussed the steps to create a comprehensive digital legacy plan and the importance of effectively communicating it with your loved ones.
Remember, it’s all about ensuring your digital life is managed in the way you want after you’re gone.
By taking these steps now, you can provide peace of mind for yourself and clarity for your family.
So, start cataloguing your digital assets, appoint a digital executor, and make sure your wishes are known.
It might be a bit of effort upfront, but it’s well worth it to protect your digital legacy.
Author Bio
Jaslyn Ng is a dynamic finance professional and the Head of Editorial at Dollar Bureau, where she excels in making complex financial topics accessible and relatable to a broad audience. Beginning her career as a ghostwriter for global finance websites, Jaslyn developed a unique perspective on financial matters, which she now brings to the forefront at Dollar Bureau. Her academic background in accounting and finance, combined with her passion for demystifying insurance and investment concepts, makes her a pivotal figure in translating intricate financial information into easy-to-understand content.
