In today’s digital age, estate planning isn’t just about physical assets like homes and bank accounts. Many people have valuable digital assets that need protection and proper management. It is helpful to understand the importance of including digital assets in your estate plan.
What are digital assets?
Digital assets include anything you own or manage online. These can range from social media accounts, email accounts, and digital photos to online banking, cryptocurrency, and other digital investments. As your life becomes more intertwined with technology, ensuring these assets are protected and passed on correctly becomes crucial.
Why include digital assets in your estate plan?
Failing to plan for digital assets can lead to various problems. Loved ones may struggle to access important accounts, lose valuable digital property, or even face legal challenges. Including digital assets in your estate plan ensures they are managed according to your wishes and provides peace of mind for your heirs.
Nevada laws on digital assets
In Nevada, the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), codified in Nevada Revised Statutes (NRS) Chapter 163, addresses the management and transfer of digital assets. This law allows individuals to specify how they want their digital assets handled after their death and grants fiduciaries the authority to manage these assets according to the deceased person’s wishes.
Steps to include digital assets in your estate plan
First, create an inventory of all your digital assets. List your online accounts, digital files, and any other digital property. Include details like usernames, passwords, and security questions. This list will help your executor or fiduciary manage these assets effectively.
Next, specify your wishes for each asset. Decide whether you want the account closed, transferred, or preserved. For example, you might want your social media accounts memorialized, your email accounts deleted, and your cryptocurrency transferred to a loved one.
Include these instructions in your estate planning documents. Work with an estate planning attorney to ensure your wishes are legally binding. They can help you incorporate these instructions into your will, trust, or a separate document specifically for digital assets.
Finally, appoint a digital executor. This person will be responsible for managing your digital assets according to your wishes. Make sure this person is tech-savvy and understands the importance of digital asset management.
Navigating digital asset planning in Nevada
Including digital assets in your estate plan protects your valuable online property and provides clarity and direction for your loved ones. As technology continues to evolve, estate planning must adapt to encompass all aspects of your digital life.