In this post, you will learn about the 8 reasons why you need to have a Digital Estate Plan.
Technology has increased the quality of life and daily tasks have become easier. Communicating with a person living distantly used to be a challenge, but today you can communicate with people within seconds. Technological advancements in the medical field continue to save an increasing number of people.
The best thing about technology and its continuous progress is, the common people get to make the most of it through the digital world. From in-person meetings to online meetings, from DVDs, cassette tapes to video and audio streaming websites and apps, the digital world has become an inseparable part of our lives.
Even banks have introduced Online Banking facilities and customers can not only transfer money from one account to another but also make use of other banking services such as creating fixed deposits or paying tax.
With the present banking system, you still have the option to cash out your money. But what about the money that has no physical existence?
Cryptocurrency has become popular because it gives people greater control of their money. It has no physical presence. But there are no intermediaries in transactions. There is no government involved and this gives people a greater sense of ownership.
It has become very convenient to buy a cryptocurrency but one must remember that Cryptos form a part of Digital Assets and unless one makes arrangements to transfer them to their beneficiaries, they cannot be cashed out.
What are Digital Assets
Digital Assets are everything that exists in the digital world and has the right to use. Your social media accounts, crypto wallets, gaming accounts, accounts with subscriptions like Amazon, Disney+, Spotify, and even the devices you use to access these accounts like your laptop, iPad, smartphones are all Digital Assets. All these different types of Digital Assets make up your Digital Estate.
Your social media accounts might have your personal videos and pictures while your crypto wallet stores your digital money. All these Digital Assets have some value to you, either financial or personal. Losing any of them would not only cause financial distress but also affect you on a personal level.
Planning for your Digital Assets lets you relieve all the pressure that might be caused by any harm or mismanagement done to your assets in the future.
Let’s look at more reasons why you need Digital Estate Planning.
Secure Your Identity
47% of people in the U.S. reported cases of identity theft causing losses of around $712.4 billion in 2020. In 2021, the losses are expected to be $721.3 billion. Inactive accounts and accounts of deceased people which are not handled by anybody are easy targets for hackers and fraudsters.
Your personal and financial information could get into the wrong hands if any of your accounts are hacked. By using a Digital Estate Plan, your accounts and all the related information will be protected. In case you pass away or become disabled, your Digital Assets will be shared securely with your family.
Leave Footprint Of Every Online Account
Have you wondered what might happen to your finances if you are incapacitated or pass away? How will your family handle it when they have no idea what to do?
Many people backup their personal videos and pictures by uploading them on the cloud. If you’re one of those people, then have you ever thought about what would happen to all this data when you’re gone?
Who would be able to access that personal data if the family members don’t have any idea about it?
They won’t just lose money but all the memories they have with you. With a Digital Estate Plan, it’s easy to track all your accounts and share their information with your family or friends.
It’s Best For Your Business
If you are a business owner, then you must know how much your Digital Assets affect your organization. Your company’s website, trademarks, patents, social media accounts are all Digital Assets.
It’s not easy to manage and secure all of them. So, why not take a Digital Estate plan and ensure the security of all the accounts at once.
Leave Something More For Your Loved Ones
Digital Estate Planning doesn’t only mean securing your financial accounts. With a good Digital Estate plan, you can decide how you want your Digital Assets to be handled by your family. You can leave your family messages, wishes, and instructions to keep everything running after you pass away or are incapacitated.
Decide Your Digital Inheritor
You can decide who gets to inherit your Digital Legacy. You get to choose who can access and get benefits from your accounts. A prime example of this would be the accounts of social media influencers.
These people have a large fan base and millions of followers. These accounts make a lot of money through advertisements. What would happen to their accounts after they’re gone? Who would handle their accounts?
If you’re one of those people whose main income comes from social media, you already know how much value these assets hold. In such a case, planning for your Digital Assets is important.
Plan The Future Of Your Digital Assets
While you decide who would access your Digital Assets, you can also decide if you want them to operate after you pass away, or if you want them deleted. It may be a case where you want some accounts to remain while others can be deleted.
Some social media platforms provide the option to memorialize accounts after the account holder’s death. You may also want the same to be done with your social media accounts. A Digital Estate plan would help you draft all your wishes in writing.
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Laws Are Behind The Times
Although RUFADAA has been imposed in many states, the process of submitting documents and attending court proceedings can be tiresome. It would be hard on your grieving family members to stand up and start collecting documents soon after your death and get ready for court proceedings to access your Digital Assets. A smoother way is to create a Digital Estate Plan or a Digital Will.
Can You Do It All?
There are many people who would think it’s an easy task to do. You just have to list all your accounts and their passwords, right?
Wrong! Digital Estate planning involves more than just listing accounts. It’s about providing security, ownership, and support to you and your family.
Planning ahead for uncertain times is the best way to protect the mental well being of you and your loved ones. A Digital Estate Plan is the key to protect and make arrangements to hand over your Digital Assets smoothly to your family after you’re no more.