Key Texas Estate Planning Tips for Managing Digital Assets

Did you know that estate planning has become more complex due to the increasing presence of digital assets that need to be planned for? What are digital assets? Digital assets refer to any form of content or information that exists in a digital format and holds value to individuals or businesses. These assets encompass a wide range of items, including online accounts, social media profiles, cryptocurrencies, digital photos and videos, intellectual property, and more.

You need to recognize that the value of digital assets can be both financial and sentimental. By working with your experienced Texas estate planning attorney you can include provisions for the management, distribution, or preservation of these digital assets in your Texas estate plan to ensure that your digital legacy is properly created. Because of their unique nature, digital assets may require more strategic planning which your experienced Texas estate planning attorney may assist you with. 

As digital assets continue to become both more complex and more prevalent, we have key Texas estate planning tips for managing digital assets that we share with many of our clients and have below to share with you.

1. You need to start with a detailed inventory of all your digital assets. Create an inventory of all your digital assets. This includes listing the platforms, accounts, and any associated login credentials. Keep this inventory updated and stored securely.
2. You need to review the terms of service for each digital asset. Be aware that this is a constantly evolving area and can be subject to change at any time, typically at the sole discretion of the company that created the digital asset. Know  the terms of service and user agreements of the platforms where your digital assets reside. Some platforms have specific provisions regarding the transfer or management of accounts upon the user’s death or incapacity although this is not the norm.
3. You need to give authority to your agent, your personal representative, and your trustee. You need to be sure that each of these three individuals, or one individual depending on the nature of your Texas estate plan, has the specific written authority to manage and dispose of your digital assets. 
4. You need to create a central password manager for digital assets that are in your Texas estate plan. You may want to consider using password manager applications to securely store and manage your login credentials. Under the guidance of your Texas estate planning attorney you may even want to go a step further and provide your future decision maker with the necessary access credentials to this central password manager account. While this will include usernames and passwords, it may also include two-factor authentication methods.
5. You need to specify digital asset distribution. Be sure to work with your experienced Texas estate planning attorney to clearly outline your wishes for the distribution or disposal of specific digital assets in your Texas estate plan. This can include transferring ownership, deleting accounts, or preserving certain assets for sentimental or historical purposes.
6. You need to regularly review, update, and manage your accounts. Be mindful that digital assets and online platforms evolve rapidly as opposed to the ownership and access to more traditional assets such as real property. Regularly review and update your Texas estate plan with your Texas estate planning attorney to reflect any changes in your digital asset inventory, platforms, or preferences. 

By incorporating these evolving Texas estate planning tips, you can better manage and protect your digital assets, ensuring that your digital legacy is handled according to your wishes. Remember, working with your experienced Texas estate planning attorney in this area is critical to remain up-to-date with changing laws and technologies that could impact your goals for your digital assets.

We know this blog may raise more questions than it answers and we want to answer them. We strive to bring families closer and make businesses stronger through legal planning. Attorney Gerald Winters is proud to serve the community of Round Rock, Texas, and the Greater Austin area in Estate Planning, Probate and Estate Administration, Elder Law, Business Consulting, and Tax Planning. Whether you run a small business or a nonprofit or are an individual looking to improve your financial security, Gerald Winters is here to help you create a customized plan for your future.