In today’s digital age, managing your digital assets is just as important as managing your physical assets. As more of our lives move online, we accumulate a wide range of digital accounts, files, and information that should be organized and planned for. Below is an overview of digital assets and steps you can take to organize and transfer them effectively.

Understanding Digital Assets

What Are Digital Assets?

Digital assets include many types of electronic content, information, and media, such as:

• Email accounts (personal and professional)

• Devices such as smartphones, tablets, and computers

• Online accounts, including purchasing accounts, sales accounts, and storage accounts

• Web presence, including websites, domain names, blogs, and social media profiles

• Intellectual property and digital rights associated with your content

Why Are Digital Assets Important?

Digital assets can have both financial and sentimental value.

Financial Value
Some digital assets may generate income or hold financial value. For example, domain names can be valuable if they relate to popular search terms or brand names. Blogs and websites may generate revenue through advertising, subscriptions, or other online activity.

Sentimental Value
Photos, videos, emails, and social media posts can hold meaningful personal memories that families may wish to preserve.

Steps to Organize and Transfer Digital Assets

1. Create a Comprehensive Inventory

The first step in managing your digital assets is creating a detailed inventory. This is often easiest to maintain through a password manager application. Your inventory should include:

• A list of all digital assets and online accounts

• Account access details such as usernames and passwords

• Information about where assets are stored (devices, cloud storage, online platforms)

2. Develop a Plan for Transferring Digital Assets

Next, create a plan for transferring the value of your digital assets to your beneficiaries.

This may include:

• Working with your estate planning attorney to include digital assets in your will or trust

• Granting authority under your financial power of attorney so a trusted person can manage digital assets if you become incapacitated

• Transferring ownership of valuable digital assets, such as cryptocurrency, to an entity like a trust or LLC when appropriate

3. Use Secure Online Storage

Online storage or password management services can help organize and protect digital assets.

These tools may allow you to:

• Store passwords, important documents, and digital files in one secure location

• Designate trusted individuals who can access your information in the event of death or disability

4. Keep Your Information Updated

To keep your digital asset plan effective:

• Update your inventory regularly

• Change passwords periodically and update your records

• Inform your fiduciary or trusted contact about important changes to your digital asset information

5. Understand Legal and Security Considerations

Digital asset management also involves legal and security considerations.

Terms of Service
Some online platforms limit account access to the original user through their terms of service. These restrictions can affect how digital assets are accessed or transferred after death.

Cybersecurity
Strong cybersecurity practices are important for protecting digital assets from theft or unauthorized access. A secure password manager is often a safer solution than maintaining passwords in a spreadsheet or document.