Digital Assets: What Are They and How to Plan for Them
What are Digital Assets?
Digital Assets are your assets that exist primarily in the virtual world, or online (i.e. Facebook, email accounts, PayPal, business websites, files on your computer, tablets, mobile phone). Incredibly digital assets have sentimental, historical, and financial value. Because of the advances in technology, what once was a love letter has now morphed into a “love email.” What was once a family photograph album is now a photobucket found online. Otherwise historically tangible items that were passed down from generation to generation are now being digitally stored. But, are they still being passed down from generation to generation?
Well, without proper planning and organization, it will be extremely difficult for loved ones to access those letters or photographs. But, when attempting to include them in your estate plan, there are several problems. The first problem is that most people do not plan their estates with their digital assets in mind. Because of the lack of legislation in this particular area of the law and the lack of uniformity in online service agreements, it is difficult to adequately plan for your digital assets.
Click here to read about California’s new digital asset law.
So, How Do I Plan for them?
With careful organization and direction in your estate plan, it is possible to include instructions that will successfully plan for your digital assets.
For more information on Digital Assets, visit Armine’s most recent article in California Society of CPAs January/February Edition