Obstacles In Digital Era Estate Planning
In today's world, digital assets extend far beyond emails and social media accounts. From smart home devices to online investments and digital banking, identifying and managing your digital property has never been more important.
A recent survey found that Americans value their digital assets at an average of $119,516. Despite this, over 75% of respondents admitted they know little about digital asset planning. Knowing what digital information and accounts you can pass on to loved ones is essential, especially as laws around these assets continue to evolve.
The Challenges of Accessing Digital Assets
Gaining access to a loved one’s digital assets can be complicated. Here are four major hurdles:
1. Passwords: Without passwords, family members may not be able to access devices or online accounts. While some passwords can be bypassed, encrypted accounts like cryptocurrency wallets are often impossible to recover without the original password.
2. Encryption: Digital data is often encrypted for security. Smartphones and cloud storage, in particular, can be hard to decrypt. If data isn’t backed up externally and shared with trusted individuals, it might become inaccessible.
3. Privacy Laws: Federal privacy laws prevent online service providers from sharing account information without the owner’s consent. Without proper legal documentation, social media and storage accounts may be locked down, making retrieval of important data difficult.
4. Criminal Laws: Unauthorized access to digital accounts is illegal, even for loved ones. Without explicit permission outlined in estate plans, accessing a deceased person’s accounts could violate state and federal laws.
