In today’s digital world, much of what we own, create, and share lives online, from social media profiles and photos to bank accounts and cryptocurrencies. As digital assets become increasingly valuable and important, it’s essential to include them in estate planning. Without proper planning, these assets could be lost, inaccessible, or mismanaged after death. In New Jersey, digital assets can be preserved and transferred through clear instructions and legal tools that ensure their security and accessibility for your heirs.
What Are Digital Assets?
Digital assets include a wide range of online or electronic content, such as:
- Social Media Accounts (Facebook, Instagram, LinkedIn, etc.)
- Email Accounts
- Financial Accounts (online banking, investment accounts)
- Cryptocurrency Wallets (Bitcoin, Ethereum, etc.)
- Online Businesses and Websites
- Digital Media (photos, videos, music libraries)
- Subscriptions and Rewards Points (Amazon, airline miles)
Each digital asset has its own unique value and access requirements. Unlike physical assets, accessing digital accounts often requires usernames, passwords, and sometimes additional security steps, making it crucial to plan for their transfer.
Why Include Digital Assets in Estate Planning?
Without incorporating digital assets into an estate plan, heirs may face significant barriers in accessing or managing these assets. Many digital platforms are protected by strict privacy laws and user agreements that prevent unauthorized access, even by family members. Including digital assets in your estate plan helps your heirs avoid these challenges, ensuring they can manage, close, or transfer accounts according to your wishes.
Steps to Protect Digital Assets in New Jersey Estate Planning
Create an Inventory of Digital Assets
Start by listing all digital assets, including usernames, account numbers, and any necessary access information. This inventory should be kept secure and regularly updated as accounts change.
Designate a Digital Executor
In New Jersey, you can appoint a digital executor who will be responsible for handling your digital assets. This individual is often separate from the estate executor and should have the technical knowledge to manage online accounts and digital assets effectively.
Include Digital Assets in Your Will or Trust
Clearly state your intentions for each type of digital asset. Specify which accounts should be closed, transferred, or archived, and designate beneficiaries for assets with financial value, such as cryptocurrencies. However, avoid including sensitive information, like passwords, directly in the will, as it becomes a public record during probate.
Use Legal Tools for Accessibility
Some platforms offer tools that allow users to designate a legacy contact or trusted person to access accounts after death. For example, Facebook allows you to select a person who can manage your profile after you pass away. These tools can simplify access for your heirs and align with your estate planning instructions.
Secure Password Management
Consider using a secure password manager to store all account information in one place. This will help ensure that your executor or designated person can easily locate and access your digital accounts. Leave instructions for accessing the password manager in a safe place or with your attorney.
Consult a New Jersey Estate Planning Attorney
Navigating digital asset protection laws and ensuring compliance with New Jersey regulations can be complex. An experienced estate planning attorney can help create a legally sound strategy to protect and transfer digital assets in a way that aligns with your wishes.
New Jersey Laws Regarding Digital Assets
The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) provides a framework for accessing digital assets in New Jersey. This law allows fiduciaries, such as executors or trustees, limited access to digital accounts if specified in estate planning documents. Under RUFADAA, it is crucial to give explicit permission in estate documents for fiduciaries to manage digital assets, as failure to do so can limit their authority and prevent access.
Conclusion
Protecting digital assets in your estate plan is essential in today’s technology-driven society. By taking proactive steps, you can ensure that your online presence and valuable digital content are preserved and accessible to your loved ones after your passing. Working with a New Jersey estate planning attorney and using available legal tools can help safeguard these assets, bringing peace of mind to you and your family.
