One owns a lot of things, from physical items to digital content. They include homes, vehicles, works of art, jewelry, bank accounts, and loads of digital content like documents, photos, and videos. At a certain point in life, you will think about Estate Planning. At that point, you will have to ensure that these things you own end up in the right hands if you get incapacitated or bid farewell to the world.
Nowadays, a tool is becoming widely popular in Estate Planning, which is very useful too. It is called Digital Vault. It is a secure online vault that can protect and secure all your digital assets. Just like you store your valuable physical belongings in your bank safety vault or home vault; your digital belongings can be stored in a secure digital vault.
A digital vault explained
We have many valuables in our possession. These are vital documents, jewelry, cash, artwork, antique pieces, photographs, and collectibles. We can store these safely in a bank vault or a home safe. A digital locker is similar to this bank or home vault. It has the same function as storing valuables securely. But instead of physical or tangible valuables, they store digital assets.
Digital vaults have an online presence only. You can access them with the use of an online platform. These online digital vaults offer high-grade encryption security features. Some of these online platforms additionally offer two-factor authentication. With extreme levels of security provided by these platforms, your digital contents are safe with them. So, if you are looking for a digital vault for documents or other digital assets, then there are plenty of options to explore.
These digital vaults are a center point where you can easily search and get access to your digital belongings in time of need. It is valuable in your life and even after your passing away. You can name a benefactor who can access your digital vault upon death. The digital vault will help your family and your digital estate planning in the time of need.
Importance of digital vault
While planning your estate, you must also keep your digital assets in mind. Each of us has numerous online accounts, and keeping track of user IDs, and passwords sometimes becomes hectic.
Nonetheless, as age passes by, there comes a time when we need to think seriously and act upon securing what would be our digital legacy. Next, we briefly state the importance of a digital vault.
- Enhanced Security The digital vaults offered by online platforms ensure bank-level security. Your mind will be at ease that all your digital assets are secure, and there will be no security breaches. The companies offering these services provide high-grade encryption. It is not just a regular cloud-storage account that is just password-protected.
- Not Expensive The service packages offered by the companies providing digital vaults are inexpensive. Many companies provide yearly plans. Hence it becomes affordable to have a personal digital vault at affordable prices.
- Easily Accessible One of the most significant benefits of a digital vault is that the owner can easily access it anytime throughout the year. This aspect is helpful during emergencies. Also, you can share your user IDs and passwords with someone you trust who can operate your account in your absence. Companies offering digital vault services also have options of the owner allocating a power of attorney to someone you trust.
- Privacy Digital vaults provide utmost privacy to the user, who can control your digital vault. There is absolute privacy. You can make customizable options in the settings. You can choose a power of attorney who will be responsible for operating your account upon your passing.
How a digital vault can protect your online data
So, what is a digital vault? Digital vault platforms are secured platforms. These digital platforms have 256-bit encryption, the highest encryption standard, making them very secure. Along with this, the platforms provide two-factor authentication. Also, most importantly, the platform cannot view any of the documents you upload. Only you and the people you share your login ID and password can see your digital content.
Digital vaults permit the user to designate a person as one nominee. That nominated person will be responsible for handling your digital accounts and digital assets after your death. Availability of this service will diminish the chance of your accounts ending up in the wrong hands. The user can leave a set of instructions about the new ownership of the digital estate.
How to choose the best online vault
In today’s world, we all have a lot of digital content and accounts, including online bank accounts. We can choose to store the details in a digital vault. Before doing it, we must review the various options before selecting one online vault. We mention the parameters to consider to be able to choose the best online vault below:
- Security First, you must ensure the security that the digital vault service provider you choose provides is topmost. The digital locker should have strong encryption during the whole process of uploading and downloading files.
- Ownership The digital contents are your personal belongings. Read the terms and conditions properly with an eagle’s eye to ensure that the digital content you upload to the digital vault you select will remain yours only. Also, be sure that the digital contents will belong to your power of attorney after you pass away.
- Privacy Privacy is another essential parameter you must consider before choosing your digital vault. Digital assets are your personal belongings and should not be accessible to others. Read the privacy features mentioned in the details carefully.
- Legal Aspect Make a legal document with your lawyer to pass the digital vault ownership to your assigned person after death. By doing this, you can entrust a person you trust with your digital contents, and they will exercise what to do with those belongings on your behalf.
- Cost of the Digital Vault One needs to consider the cost of the digital vault. Some such service providers take monthly payments, while some take annual fees. Some of these service providers have a five or ten-year plan. Depending on your budget, you can select the payment option that suits you best.
- Beneficiary Ownership Similar to one’s ownership, check for the details of the rights of the beneficiaries. Checking the beneficiary’s ownership rights is essential as the person you nominate should have a freehold of the digital vault. After your passing away, your will becomes a public document. It means anybody can have access to the will. Hence, it becomes pertinent to work with your lawyer and a service provider of digital vaults. Doing so will allow you to allocate a nominee of a beneficiary who will be authorized to handle your digital assets. You can leave instructions to the beneficiary on what to do with each online account; to delete or memorialize it.
The Importance of Digital Inheritance
Digital vaults are becoming popular in present times. People are incorporating digital vaults into their lives. But, one question arises as to the legal impact of it and its contribution to the estate planning process.
So, what exactly are digital assets and digital inheritance? Also, why are they becoming of prime importance? Digital assets include photographs, videos, electronic copies of important documents, and essential email copies. Digital assets include both sentimental value and economic value. Hence, one needs to make a succession plan (digital inheritance) for those belonging.
You can use the digital vault service provider’s facility to pass on your digital inheritance. These services hand over the details to the nominee after the user’s death. These companies follow a proper procedure to secure the digital inheritance process.
The right to privacy and security of one’s digital assets are taken very seriously in the United States. Even if someone is dead, accessing their social media accounts without their permission or wish is considered illegal. Hence, there are digital inheritance platforms based on RUFADAA guidelines to ensure the user’s assets are secure, even after their demise. When the user stores data on a service provider’s platform, it is called the digital estate of that user.
According to the terms and conditions of the service provider, unless the user has not made a legal document, they will not share the details and contents of the user’s digital estate with the heirs. If a well-defined clear Will is not there, the user’s account will remain locked forever. In the presence of a Will, the service provider will provide the nominee/heir with the details of the user’s account.
Digital inheritance is essential as you can pass on your digital belongings to your loved ones, family, and friends. With a proper estate plan in place, you can appoint an executor of your estate plan, which consists of the details of your online digital vault.
When the world was non-digital, there were instances when errors would occur during estate planning. It would be difficult for the authorized person in the will to access what the user did grant to them. Times have changed now. Most things are getting digital, and so is your will. We have a lot of belonging in the digital assets category.
We at Clocr.com ensure the safety of all your digital assets by offering you one of the best secure digital vaults. Our state-of-art, ultra secure digital vault ensures tight security with high-grade encryption and spreads your files across different cloud locations. By creating a personal digital vault with CLOCR, you have all your digital files secured in a single place. Visit clocr.com today.