Estate planning isn’t just for the wealthy. It’s for anyone who wants to ensure their assets are protected and distributed according to their wishes. Traditionally, estate planning involved drafting wills, creating trusts, and designating beneficiaries.

However, as technology continues to permeate every aspect of our lives, it has become increasingly important to consider how it intersects with estate planning.

The Relationship Between Estate Planning and Technology

Our lives are intertwined with technology in ways that were unimaginable just a few decades ago. From online banking to social media accounts, digital assets have become a significant part of our personal and financial lives. Consequently, estate planning must evolve to address these new realities.

Digital Assets and Their Importance
Digital assets encompass a wide range of items, including:

• Online banking and investment accounts
• Cryptocurrency holdings
• Social media profiles
• Digital photos and videos
• Email accounts
• Subscription services

These assets hold both sentimental and financial value. Failing to include them in your estate plan can lead to complications and potential loss of value. For example, if your heirs cannot access your cryptocurrency wallet, those assets may be lost forever.

Digital Estate Plans
A digital estate plan is a comprehensive approach to managing digital assets after passing. It involves inventorying your digital assets, providing access information, and specifying how you want these assets handled. This ensures that your digital legacy is protected and your wishes are honored.

How to Stay Protected in a Digital World

With the increasing prevalence of cyber threats, staying protected in the digital world is paramount. Here are some steps you can take:

Secure Your Passwords
Strong, unique passwords are your first line of defense against unauthorized access. Use a reputable password manager to generate and store complex passwords for all your accounts. Avoid using easily guessable information, such as birthdays or common words.

Enable Two-Factor Authentication
Two-factor authentication (2FA) adds an extra layer of security to your accounts. By requiring a second form of verification, such as a text message or authentication app, 2FA makes it significantly harder for hackers to access your accounts.

Regularly Update Software
Outdated software can be a gateway for cyberattacks. Ensure that your operating systems, applications, and devices always run the latest updates and security patches.

Create a Digital Inventory
Document all your digital assets, including account login information and access instructions. Store this inventory in a secure, easily accessible location, and update it regularly.

How to Use Technology When Planning for Your Future

Technology offers many resources to help you think about and plan for your future. Here are some ways to leverage technology in your estate planning efforts:

Virtual Meetings: Many estate planning attorneys and financial advisors offer virtual consultations, making it easier to connect with professionals from the comfort of your home. This can be especially beneficial for seniors or those with mobility issues.

Online Document Storage: Securely store your important documents, such as wills, trusts, and power of attorney forms, in online cloud storage services. This ensures that your documents are easily accessible to your designated heirs and eliminates the risk of physical damage or loss.

Financial Planning Apps: Use financial planning apps to track your assets, monitor your investments, and set goals for the future. These apps can provide valuable insights and help you make informed decisions about your estate.

Educational Resources: Take advantage of online educational resources, such as webinars, articles, and forums, to stay informed about the latest trends and best practices in estate planning. Knowledge is power, and staying educated can help you make better decisions.

CLICK HERE to access our extensive selection of informative videos.

Digital Will

If you would like for someone to take control of information when you’re gone, you can also put together a “Digital Will.” On this document, you can store website information, usernames or user IDs, passwords, and online files—and whether you would want the information deleted once you’re gone. There is a Digital Will form on our website here.

Once completed, you should share the Digital Will with your Executor and your agent under your Durable Power of Attorney (or at least let them know where it is and how to access it).

Incorporating technology into your estate planning process is practical and essential in today’s digital world. By understanding the relationship between estate planning and technology, staying protected in a digital environment, and leveraging technological tools, you can ensure that your assets are managed and distributed according to your wishes.