Estate planning used to be pretty straight-forward. You prepared a will that stated all of your ‘worldly goods’ would be given to your next of kin. Your executor wrapped up your financial affairs and ensured your kin received your goods. Today, some of our ‘worldly goods’ are invisible – our digital assets. Even if we cannot see or touch our digital assets, we still have to consider them in the estate planning process. And, our executor and next of kin will appreciate it if we keep our digital assets organized.

What Are Digital Assets?

Digital assets are files stored on digital devices (phones, computers, cloud drives, etc.) containing:

• Intellectual Property: a half-written novel, schematics for a widget machine, etc.
• Memorabilia: owner’s photos, scanned documents, digital certificates, awards.
• Music: owner’s compositions or purchased songs, ringtones, etc.
• Art: owner’s compositions or purchased videos, graphics, photos, and other images.
• Books and Documents: audio and e-books, educational materials, and other documents.

It also includes, but is not limited to:

• email accounts (e.g. Gmail)
• financial accounts (e.g. PayPal)
• cryptocurrency
• domain names, blogs, and websites
• software licences and subscriptions (e.g. Office 365)
• online stores (e.g. eBay)
• affiliate and pay-per-click programs (e.g. Amazon)
• subscriptions (e.g. Hello Fresh)
• loyalty accounts (e.g. Airmiles)
• social media accounts (Facebook, Twitter, Pinterest, Instagram, YouTube, etc.)

Looking at this list can be overwhelming. But with a little bit of planning, you can make the estate planning process a bit easier. Using the Out of Chaos BCLEAR method can help you get organized.

Bring it Together

The first step in estate planning is making a list of all your digital assets. Look at the list above as a starting point. Create the list in a paper notebook or as a document on your computer. Whichever you choose, make sure your power of attorney or executor knows where to find it.

As you compile the list, check each account’s terms and conditions to determine what happens with the assets when you pass away. The “right of survivorship” depends on what type of account it is, what jurisdiction you live in, and whether or not you have a valid will that takes your digital assets into account.

Categorize

On your list, group your digital assets into sections. For example, in the “Music” section, you might have three groups; your compositions, Spotify, and Apple Music. You might want to separate photographs into two groups; your photos and downloaded stock photos.

Limit

The next step is downsizing. Close email and social media accounts that you never or rarely use. Cancel subscriptions to newsletters and online magazines that you rarely or never read.

Likewise, reduce the number of unused or infrequently used loyalty and points accounts you have. If you rarely accumulate enough points for a reward, just say good-bye to the points and close the account. Some loyalty programs will let you donate your unused points to a charity or transfer the points to a friend or family member. Also, while it is acceptable to save up for a specific reward, avoid stockpiling points. Infrequently accessed accounts with lots of points are a prime target for hackers.

Evaluate

Evaluate the usefulness of each asset; it will help you determine whether to keep it or delete it. Also, evaluate the digital rights to each asset. Did you download it from a legitimate website? If not, delete it. You don’t want your heirs to be responsible for making that determination. Likewise, delete those random screenshots and social media memes you saved.

Allocate

Allocate a home for specific digital assets and write it on your list. Will some items live only in the cloud, or will they be permanently on a device? Ensure your executor knows where to find all of your digital devices, too (e.g. smartphone, tablet, laptop, etc.).

Think about how you will allocate your digital assets after you die. Do you want your family to have all or some of your photos and your half-written novel? Do you want your social media accounts emptied and closed down? Write your wishes on your list.

Remember

Remember to discuss your digital assets with your lawyer when preparing your will. Discuss your wishes with your power of attorney or executor too. Also, ensure your executor has the authority and information to access your accounts.

Ensure your power of attorney has access to the passwords to access your devices and the usernames and passwords of your accounts. Provide the answers to security questions as well. They may not know the name of the street you grew up on or how to spell the name of your first pet. You can include this information in your notebook or use a password manager.

Organizing your digital assets and estate planning is challenging. However, when the time comes, your heirs will be glad you prepared and made the job easier for them to manage.

If you want some hands-on help sorting out your digital assets, contact Out of Chaos through our website, by email at info@outofchaos.ca or by phone at 604-813-8189.

Image by Teddy Rawpixel at rawpixel.