In today’s digital world, our online presence is more than just a social media footprint. It often includes valuable assets like cryptocurrency, intellectual property, and even digital collections. Yet, digital assets are frequently overlooked in estate planning. For Washington residents, understanding how to account for these assets is essential to ensure a comprehensive estate plan. Here’s what you need to know about including digital assets in your Washington estate planning.
What Are Digital Assets?
Digital assets include any electronic data you own or have rights to. Examples include:
- Financial assets, including cryptocurrency (Bitcoin, Ethereum) and online investment accounts.
- Social media accounts, like Facebook, Instagram, and LinkedIn.
- Online subscriptions, including domain names, website hosting services, and streaming services.
- Intellectual property, including digital music collections, e-books, blogs, and other online creative works.
Please note that each digital asset has its unique characteristics and often requires different steps for access and transfer.
Washington’s Legal Framework for Digital Assets
Washington is one of the many states that has adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). This law allows individuals to designate who can access their digital assets after they pass away or if they become incapacitated. However, service providers often have strict terms of service, which can limit access or transferability, so it’s crucial to plan carefully.
Steps to Take to Include Digital Assets in Your Estate Plan
You will first want to take inventory of your digital assets. You should create a list of all digital assets, including account details and approximate values. Be sure to include login information and passwords in a secure document (but not in your will itself, as wills become public record).
Once you’ve identified your digital assets, appoint a digital executor or representative. Designate a person to handle your digital assets separately from your traditional executor if desired. You want to ensure that your digital executor has clear instructions on what you want done with each asset, such as archiving, deleting, or transferring them.
Next, grant legal authority in your estate plan. Explicitly authorize your executor or digital representative to access digital assets in your will, power of attorney, or trust. Specify instructions for each asset to avoid conflicts, as service providers are more likely to cooperate if clear authorization is documented.
Lastly, store access information securely. Use a digital vault or password manager to store login details securely, ensuring your representative can access these after you’re gone. Regularly update this information to keep it current.
The Risks of Not Including Digital Assets in Your Estate Plan
Omitting digital assets can lead to:
- Access delays – Executors or family members may face legal hurdles in accessing important accounts.
- Loss of value – Cryptocurrencies or digital investments could become inaccessible, resulting in lost value for your heirs.
- Privacy concerns – Without specific instructions, sensitive information may remain accessible or be deleted unintentionally.
How Often Should You Update Your Digital Asset Plan?
Just like other aspects of an estate plan, digital asset instructions should be reviewed regularly. As technology changes and new platforms or assets emerge, it is important to update access information and review any designations.
In the End…
Incorporating digital assets into your Washington estate plan is essential to ensure a complete and secure transfer of all your assets. With a proper inventory, clear instructions, and legal authorization, you can safeguard your digital legacy and ensure your wishes are respected. Consult with a Washington estate planning attorney to set up these provisions properly and to stay compliant with both state and federal laws regarding digital assets.
Contact The McWilliams Law Group for Help
The established California and Washington estate planning attorneys at the McWilliams Law Group help you prepare for the future today. We provide legal assistance with the following:
- Will drafting, execution and review
- Living trusts
- Advance healthcare directives (living wills)
- Powers of attorney
- Estate and gift tax issues
- Guardianships and conservatorships
- Choosing the appropriate executor and/or trustee
The skilled attorneys at our firm can help thoroughly analyze your estate and strategize the best means of transferring your assets, minimizing taxes, establishing guardianship, and supporting philanthropic causes. Contact us now and let us help protect your personal security, family, and legacy.
* Main image at top by rawpixel.com on Freepik
