What Is a Digital Will?

With technology evolving so quickly, managing and passing down digital assets has become a new challenge. These assets can range from social media accounts to digital currencies and online documents. If you were to pass away, how would your family memorialize or delete your Facebook or Instagram accounts? Will sentimental digital photos and videos be lost? What about access to your checking or savings accounts? Enter the “digital will.”

There are two types of digital wills. One is related to creating a legal will for estate planning and the other is specific to assigning transference wishes for your digital assets. In this article, we’ll focus on the second of the two. We’ll cover how to pass down your digital assets, as well as how to make sure your online presence is handled the way you want after you’re gone.

A New Age: Passing Down Memories and Modern Technology

Putting your wishes in writing by having a will can significantly ease the burden on your family. However, a 2021 survey revealed a striking gap: 68% of millennials still don’t have one, and only 38% have provided clear instructions for managing their digital accounts.

Social media and financial platforms are part of our everyday lives, so it’s crucial to think about how our online presence will be managed if we can no longer manage them ourselves. Before we dive into the steps for creating your digital will, let’s first clear up what digital assets are and how they can be managed after your death.

So, What Are Digital Assets?

Digital assets can be all over the place, especially since we store so much information on our phones, computers and the cloud. Here’s a rundown of what you might have:

• Email and social media accounts
• Financial accounts (e.g. banking and insurance)
• Online subscriptions and services
• Cloud storage and backup services
• Digital media, photo and video storage, purchased media (e.g., iTunes, Google Play)
• Websites and domains, personal or business websites, domain names you own
• Loyalty and rewards programs, airline miles accounts, hotel points accounts, retail loyalty programs
• Online business assets, e-commerce store accounts (e.g., Shopify), seller accounts (e.g., Etsy, eBay), digital products and intellectual property
• Online utility accounts (e.g., electricity, water, Internet)
• Digital password managers

Knowing what digital assets you have is Step 1 for crafting your digital will. By listing and categorizing them, you’ll make sure they’re handled how you want them to be.

What Happens to Digital Assets Once You Die?

Just like physical assets, your digital footprint doesn’t vanish. But how can you ensure these digital assets are handled appropriately?

The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) provides a solution. It allows the executor of an estate will or trustee to manage digital assets like websites, domain names and virtual currency while also protecting your privacy. The executor can access your accounts and manage your digital footprint based on your instructions. They can delete accounts or memorialize social media profiles.

What Digital Assets Can and Can’t Be Passed On?

It’s important to note that not all digital assets can be passed on through a will or living trust. For instance, subscription accounts usually can’t be transferred. Let’s look at what digital assets can and can’t be passed on.

Digital Assets That Can Be Passed On:

• Digital files such as documents, photos and videos stored on computers or in the cloud
• Email accounts, typically requiring proof of death and relationship
• Social media accounts like Facebook and Instagram
• Cryptocurrencies
• Websites and online businesses, including domain registrations, hosting accounts and business assets

Digital Assets That May Be Difficult or Impossible to Pass On:

• Purchased digital content, like e-books, music and movies
• Social media content, like posts or messages
• Accounts with strict terms of service

In your digital will, be sure to leave detailed instructions on how you want these accounts handled—whether that’s managing them or closing them down.

Creating Your Digital Will in 4 Steps

When preparing your digital will, you want to make sure your digital assets are safe, accounted for, and handled according to your wishes. Here’s a simple guide to help you get started:

1. Take Inventory

Start by making a list of all your digital assets, from online accounts to cloud storage. If you’re not sure where to start, the lists above are a good reference.

2. Allocate Access

Decide who should have access to different assets. For example, you might give financial account access to a family member and social media profiles to a close friend. Note that different assets might require different levels of permission.

3. Appoint an Executor

Choose someone who can manage your digital estate according to your wishes. This person should be someone you trust to handle any of the complexities involved.

4. Make It Legal and Secure

Ensure your digital will is legally valid and securely documented. Check your state’s legal requirements and consider consulting with a legal professional.

How to Access Digital Assets After a Loved One’s Death

Imagine trying to access your parents’ or grandparents’ accounts after they’ve passed away. Most people wouldn’t have a clue. In fact, the previously mentioned 2021 survey found that 63% of people who have executed wills found it harder than they expected to get into the accounts of the someone who passed away.

Getting into a loved one’s digital assets after they’ve passed can be tricky. Here’s what to consider:

• You’ll want to know who was designated to handle digital assets or if a digital will was included in their estate plan.
• You’ll need to decide what to do with certain accounts—whether to delete them or take other actions.
• Some states have specific laws or procedures for accessing and managing a deceased person’s digital assets.

Proactively making decisions about your digital assets is a crucial part of estate planning. By addressing potential challenges and clearly documenting your wishes for digital assets, you not only protect your online legacy but also ensure your loved ones are spared additional stress. Incorporating this into your estate plan, along with securing life insurance, can provide comprehensive protection and peace of mind for your family during a difficult time.

For more on how life insurance can fit into your estate planning, check out Gerber Life Insurance.