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In a modern world, our financial lives are increasingly digital. Online banking accounts, investment apps, trading platforms and crypto exchanges hold the keys to our personal wealth.
But like they say: You can’t take it with you.
So what happens to the money in those online accounts after you die? Who gets it and how does that work?
Failing to make arrangements for your digital assets can create stress and hardship for the people you love. They may struggle to access money you intended to leave them or lose out on sentimental items like family photos and videos.
Digital estate planning prevents the unforeseen lapses that can occur even when you have a traditional estate plan in place that covers your home, vehicles and retirement accounts.
Here’s what you need to know to fill in the digital gaps.
What Is a Digital Estate Plan?
A traditional estate plan spells out where your all your belongings, property and money go after you die.
A digital estate plan focuses on your online accounts and assets.
It’s not a legally binding document like a will, but a record of your various online accounts, logins and special instructions on how you want these accounts managed when you die.
A digital estate plan is important because it can help your family more easily:
- Locate and access your online accounts.
- Determine if your digital property has any financial value that needs to be reported (or submitted to probate).
- Distribute or transfer digital assets to the right people.
- Delete online accounts.
- Protect your online assets from identity theft, hacking and fraud.
Most importantly, a digital estate plan saves your loved ones from the added stress of trying to find and manage online accounts after you die.
How to Set Up Your Digital Estate Plan
Follow these steps to create plans and instructions for your online assets after you die.
1. Take Inventory and Get Organized
The first step of digital estate planning is creating a list of all your online…
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