Holding Digital Assets in Your Estate Plan: What Dallas Residents Need to Know

Many people think of estate planning as dealing with houses, bank accounts, and personal belongings. But now so many vital parts of life are online. After someone dies, photos, email accounts, social media profiles, online banking, cryptocurrency, business files, reward points, and even digital subscriptions could all be part of an estate. A Dallas estate planning attorney can help you think through what happens to those digital assets and how to protect them as part of an overall estate plan.

What Are Digital Assets?

Digital assets are things that you own, control, or use on the internet or on electronic devices. Some have monetary value, while others are valuable only in sentiment. For example, money or income could be held in an online payment account, a crypto-wallet, or an online business account. Family photos stored in cloud storage or email messages may not have financial value, but can still mean a great deal to loved ones.

Many people do not realize how much of life now exists online. Streaming accounts, shopping accounts, loyalty rewards, websites, digital business records, online investments, and even passwords can become important after death or serious illness.

Why Should Digital Assets Be Included in an Estate Plan?

Without clear instructions, your family may have difficulty accessing important accounts or information. Even if family members know an account exists, they may not have the username, password, or legal right to access or manage it.

It sometimes happens that an account gets locked or deleted because of disuse or repeated failed login attempts. You may continue to receive bills related to online accounts, automatic payments may continue to be made, or you may lose valuable information.

Estate planning can help reduce confusion by giving instructions on who should take care of digital property and how it should be handled. It can also make life easier if someone falls seriously ill or cannot take care of their own affairs.

What Types of Digital Assets Should Dallas Residents Think About?

A lot of people don’t realize how many digital assets they really have. Online banking, payment platforms, retirement accounts, investment accounts, digital tax records, cloud storage, online businesses, and social media accounts could all be important.

Others have digital assets related to work or hobbies. Photographers, for instance, may hold years of work online. Writers, content creators, or business owners can use websites and online accounts to make money. Even reward points or travel miles can be worth something, depending on the program.

If you own cryptocurrency, this makes careful planning even more important, as family members may not be able to recover those assets without passwords or access information.

A Dallas estate planning lawyer can help you consider what digital assets require special attention and how to plan for them in your estate plan.

How Can You Protect Digital Assets in an Estate Plan?

One of the simplest things you can do is make a list of important online accounts and explain where access information is stored. This does not mean placing passwords inside a will, since wills may become public records. Instead, many people store account details safely in a password manager, secure document, or private records.

Additionally, estate planning documents can designate someone to take charge of your digital assets if you become incapacitated or die. This person may help close accounts, preserve important records, manage online finances, or transfer digital property to loved ones.

Keeping information current also matters. Passwords, accounts, and technology change all the time. Estate plans should be reviewed periodically to help avoid confusion down the road.

What Happens If Digital Assets Are Not Planned For?

Without planning, families may spend months trying to locate or access accounts. Some assets will be lost forever if nobody knows where they are or how to access them.

This can lead to financial problems, delays, stress, and confusion during an already difficult time. Families may also lose photos, documents, or digital memories stored online.

As digital life continues to expand, estate planning must expand with it. Working with a Dallas estate planning lawyer can help you create a plan that protects both your traditional and digital assets.

If you are interested in creating or updating an estate plan that includes digital assets, Coleman Jackson, P.C. can help. Contact Coleman Jackson, P.C. online or at (214) 599-0431 to discuss your estate planning goals and how you can protect what matters most.

This law article is written by attorneys atColeman Jackson, P.C., which is located at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206, for educational purposes; it does not create an attorney-client relationship between this tax law, business law, and estate law firm and its reader. You should consult with legal counsel in your geographical area with respect to any legal issues impacting you, your family, or your business.

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