Protecting Digital Assets in Your Estate Plan

 Posted on November 29, 2024 in Estate Planning

It is the end of 2024, and we are now almost a decade past the farthest point into the future imagined by the "Back to the Future" movies. Our lives truly do look as different from the 1980s as the films predicted, and we can easily take for granted that we live in an age of seemingly boundless technological advancement.

With so many aspects of life affected by innovation, it is only natural that the law will be affected as well. One area where this has certainly become relevant is estate planning. As people accumulate more and more digital assets that were inconceivable only a few decades ago, these assets need to be addressed in a comprehensive estate plan. A knowledgeable Hillside, IL estate planning lawyer can help.

What Are Digital Assets?

Anything you own that exists in a digital form is considered a digital asset. Some examples are:

• Social media accounts, including Facebook, Instagram, X, etc.;

• Email accounts;

• Online banking or investment accounts;

• Music, photo, or video files stored in the cloud;

• Cryptocurrency; and,

• Domain names or websites that you own.

For many people, these assets are part of day-to-day life, so it can be easy to forget that they are part of your estate, just like your home or car. And just like any other asset, when you pass away, someone will need to access these accounts to manage or close them.

An Illinois law passed in 2016 allows a representative whom you name in your will, or an agent under a power of attorney, to manage your digital assets after your death. However, the law has limits and can change, so it is important to stay up-to-date and understand what is involved.

Why Should I Protect My Digital Assets?

Without proper planning, your friends and family might struggle to access your online accounts after you are gone. Planning for your digital assets ensures that your wishes are followed, your accounts are closed, and your online presence is handled the way you want. This is especially important for high-value assets like cryptocurrency; including them in your estate plan will ensure they are given to your beneficiaries in accordance with your wishes.

How Can I Protect My Digital Assets?

To ensure your digital assets are handled according to your wishes, there are several steps you can take:

• Prepare a list of your digital assets: Write down all your digital accounts and their usernames, passwords and any important information;

• Include digital assets in your will: Include instructions for how your digital assets should be handled, and by whom; 

• Use online account services: Many digital platforms let you designate someone who can manage or close your account when you die or become incapacitated; and,

• Appoint a digital Power of Attorney: You can give someone specific permission to access and manage your digital assets in your best interest.

Schedule a Free Consultation with an Oak Park, IL Estate Planning Lawyer

If you are interested in creating a comprehensive estate plan that includes addressing your digital assets, a qualified Hillside, IL estate planning attorney can help. At the Law Office of Vincent C. Machroli, P.C., we have been dedicated for over 37 years to giving our clients the peace of mind that comes with knowing that their wishes will be honored and their beneficiaries will be taken care of. Call us at 708-449-7404 to schedule a free, private consultation.