A Digital Estate Plan is nothing but an Estate Plan exclusive to your Digital Assets.
We all know the benefits of creating an Estate Plan. In the world ruled by digitization, creating an Estate Plan for our Digital Property – also known as Digital Estate Plan – has become a necessity.
Let’s have a look at a few Digital Estate Planning terms before we move on to the topic of our discussion – how is Digital Estate Planning beneficial to your family?
What is Digital Estate Planning?Digital Estate Planning is the process of organizing your Digital Assets and making arrangements as to who should handle them after you’re gone.
What are Digital Assets?
A Digital Asset is any information created or owned by you in a digital format, either in an electronic storage device or online.
Your Digital Assets include:
- Social media profiles
- Online banking and third-party payment services
- Online subscription services and online shopping
- Cloud storage and online documents
How does creating a Digital Estate Plan help my family after I’m gone?
By now, we assume you know what a Digital Estate Plan is and how you can create one. If not, do not worry. We got you covered. You can always have a look at our Introduction to Digital Estate Planning and How to create a Digital Estate Plan blog posts and learn more about Digital Estate Planning.
We have all heard of the identity thefts and hacks some of our online accounts are subjected to. We also know how having maximum security features such as two-point authentication helps in securing our online accounts and data. But what happens to these accounts when we pass away? Who will keep them secure? This is why we recommend you to create a Digital Estate Plan.
A Digital Estate Plan gives your beneficiaries a means to handle or manage your online accounts – be it closing your subscription accounts, memorializing your social media accounts or deleting your email services.
A Digital Estate Plan helps your family in the following ways:
- By creating a list of your online accounts and including them in your Digital Estate Plan, you are letting your beneficiaries know how many Digital Assets you own.
- By leaving instructions on how to manage these Digital Assets after your demise, you are letting your beneficiaries fulfil your last wishes.
- While listing your Digital Assets, you might come across a few that are of financial value and need to be reported and submitted to the probate. By doing so, you are not creating any Digital Asset tax liabilities to your beneficiaries.
- By creating a Digital Executor for your Digital Assets, you are making sure specific people (i.e. people of your choosing) will be handling your Digital Accounts after your death.
- Avoid identity thefts. When your beneficiaries have access to your Online Accounts, they can take the same security measures that you did when you were alive and keep your accounts safe forever.
You are now familiar with the process of creating a Digital Estate Plan. You also know the benefits of creating now. Sign-up with Clocr and get all the help you need in creating your very own Digital Estate Plan.