In today’s digital age, estate planning has evolved to include physical and financial assets and digital assets. From online accounts to intellectual property, ensuring that your digital presence is addressed in your estate plan is critical. This is especially important in Illinois, where specific laws like the Illinois version of the Uniform Fiduciary Access to Digital Assets Act (UFADAA) govern how digital assets can be managed after death.
What Are Digital Assets?
Digital assets encompass a wide variety of online and electronic properties, including:
- Email Accounts: Personal and business email accounts often contain essential communications and documents.
- Social Media Accounts: Platforms like Facebook, Instagram, and Twitter store personal memories and interactions.
- Bank Accounts: Online access to financial institutions for transactions and account management.
- Digital Property: This includes intellectual property like ebooks, photographs, music, and videos.
- Online Accounts: Streaming services, subscription platforms, and loyalty programs.
- Cryptocurrency: Bitcoin and other cryptocurrencies are increasingly standard components of modern estates.
Understanding the scope of your digital property is the first step in creating a comprehensive digital estate plan.
Why Are Digital Assets Important in Estate Planning?
Failing to address digital assets in your estate plan can leave family members struggling to access your accounts, manage subscriptions, or preserve your digital legacy. Without a proper plan, digital accounts may become inaccessible due to terms of service agreements, which often prohibit unauthorized access.
Additionally, neglecting digital property in estate planning can lead to financial loss, as valuable assets like cryptocurrency or intellectual property may be overlooked.
Include Digital Assets in Your Estate Plan
Begin by creating a list of all your digital accounts and properties. This includes:
- Account usernames and passwords
- Email accounts
- Social media accounts
- Subscription services
- Online banking and investment accounts
- Intellectual property
Next, designate a digital executor. A digital executor is someone you trust to manage your digital assets after your death. While Illinois law does not explicitly recognize the role of a digital executor, naming one in your estate planning documents guides your family and fiduciaries.
Use password management tools. Password managers and other similar apps can securely store your login information and provide your digital executor or beneficiaries with access when needed. Ensure that your chosen executor has the necessary instructions to retrieve this information.
Incorporate digital assets into your estate planning documents. This includes:
- A will or trust specifying how digital assets should be managed or distributed
- Authorization for someone to access your accounts under Illinois’s version of the UFADAA
- Instructions for accessing digital accounts, including usernames and passwords
Make sure you understand any terms of service agreements associated with your digital assets. Many online platforms have terms of service that restrict account access to the original user. Familiarize yourself with these agreements and include appropriate permissions in your legal documents to help family members access your accounts without violating terms.
Regularly update your estate plan. Digital assets can change frequently, so updating your estate plan periodically is essential. Add new accounts, passwords, or instructions to ensure your digital executor has the most current information.
Legal Considerations for Digital Assets in Illinois
Incorporating digital assets into your estate plan requires careful attention to state-specific laws. Illinois has adopted the Uniform Fiduciary Access to Digital Assets Act (UFADAA), which governs digital accounts and property access. This law allows individuals to authorize fiduciaries to manage digital assets, provided proper legal documentation exists. Consulting with an estate planning attorney ensures your plan complies with Illinois law.
Benefits of Addressing Digital Assets in Estate Planning
Including your digital assets in your estate plan is smart for many reasons.
- Simplified Access for Family Members: Providing clear instructions and access to your digital accounts reduces stress and confusion for your loved ones. It also helps prevent financial losses or missed opportunities tied to inaccessible assets.
- Preserving Your Digital Legacy Social media accounts and other digital properties often contain sentimental value. A digital estate plan ensures these assets are preserved or managed according to your wishes.
- Avoiding Legal Complications Without proper documentation, accessing digital accounts can lead to disputes or violations of terms of service. A comprehensive plan minimizes these risks.
Let Peck Ritchey, LLC Work With You on Your Estate Planning Efforts
Digital assets are an integral part of modern estate planning. However, without the help of an experienced estate planning attorney like the ones at Peck Ritchey, LLC, your heirs could be left in the proverbial dark about what to do next, especially regarding your digital assets. For personalized guidance on digital assets estate planning, call Peck Ritchey, LLC at (312) 201-0900 or contact us online and take the first step toward securing your legacy under Illinois law.