Don't forget about your digital assets in your estate planning.

Date : 05/09/2023
Read: 3 mins

What happens to your digital assets when you die? Read the article to secure your digital legacy (crypto, NFTs, and other online assets) with a will.

If you own cryptocurrencies, Non-Fungible Tokens, or other digital assets, you may always wonder how to secure them for the future. After all, these assets are not like physical property that can be easily passed on to your heirs. They require special attention and planning to ensure they are not lost or stolen when you are gone. In this article, we will explore the challenges and solutions for digital asset estate planning. We will also provide tips to help you create a will that protects your digital legacy.

Highlights:

Digital assets are valuable
Listing all digital assets
Documenting access instructions for digital assets

Also Read: Although digital assets are unregulated, you still have some rights when you invest in these assets!

It is absolutely essential to include all digital assets and legacies in documents, along with passwords and other access information, in a way that legal heirs can easily access them. This will ensure that your digital legacy is preserved and managed according to your wishes.

What are digital assets?

Digital assets are virtual representations of value that can be exchanged for money or other goods and services. They can assume multiple forms, including cryptocurrencies, NFTs, websites, domain names, e-commerce stores, revenue-generating social media accounts, digital files, subscriptions, apps, credit card points, and more.

Documenting digital assets in wills: Digital challenge

Identifying and listing all digital assets, such as cryptocurrencies, NFTs, digital rights, social media accounts, etc.
Providing clear and secure instructions for accessing each digital asset, such as passwords, keys, and authentication details
Finding a suitable executor who is familiar with the technology and platforms involved in digital assets management
Ensuring the privacy and security of the digital assets and ensuring digital assets' security
Ensuring the executor can access and manage the digital assets effectively and securely
Dealing with the volatility and unpredictability of digital assets like cryptocurrencies
Understanding and complying with the legal regulations and tax implications of digital assets in different jurisdictions

Including digital assets in wills/ estate planning

Documenting digital assets in wills and estate planning is crucial for influencers to ensure their legacy is preserved and managed according to their wishes. This process involves cataloguing all digital assets, including social media accounts, royalties, digital rights, and branding elements. It is important to create a comprehensive list that encompasses digital currencies, NFTs, digital subscriptions, stakes in online businesses, and credentials for online platforms. The will should provide detailed instructions for accessing each asset, including passwords, two-factor authentication details, and cryptographic keys. By incorporating digital assets into their wills, influencers can ensure a digital inheritance for their heirs and maintain continuity for their online community.

Also Read: Announcement regarding cryptocurrencies and other digital assets

Disclaimer: This article is intended for general information purposes only and should not be construed as investment, legal or tax advice.