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Today, cryptocurrency and other digital assets are often a key part of your net worth. Whether you started mining bitcoin when it started or have invested well in NFTs, you want to ensure they are passed down to your next generation. The thing is, digital assets require a little extra attention as compared to typical assets of the past. Passing your digital keys, passcodes, and more must be properly planned for. Otherwise, it could all be lost after you pass.
The skilled estate planning lawyers at Bielski Chapman, Ltd. are well aware of what it takes to protect your digital assets for your loved ones. Let us start your estate planning journey, or modify your existing plan to ensure you digital assets are protected the right way.
What Are Digital Assets?
Digital assets include many different intangible assets that may have value to you.
- Email accounts (Gmail, Outlook)
- Social media profiles (Facebook, Instagram, LinkedIn)
- Cloud storage (Google Drive, Dropbox, iCloud)
- Online banking and investment accounts
- Cryptocurrency holdings (Bitcoin, Ethereum)
- Digital photos, videos, and documents
- Domain names and websites
- Subscription services (Netflix, Spotify)
Some of these digital assets have actual monetary value. Others may just be more sentimental to you, but that makes them no less valuable in your mind. Either way, these assets deserve specific protection in a well-crafted estate plan.
How Illinois Law Impacts Digital Asset Protection
Illinois has adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). This law outlines how fiduciaries are permitted to access your digital assets after you pass away. These might include executors, administrators, and more. Under the RUFADAA:
- You can grant access to digital assets
- You can restrict access to those assets
- Fiduciaries can be limited in their power, only accessing digital assets with express permission
- Service providers (like Google or Facebook) may limit access unless legal consent is provided.
To make sure your wishes are followed, your estate planning document should very clearly state who is in charge and who can have access.
What Steps Should I Take to Protect My Digital Assets?
1. Inventory Your Digital Assets
List all of your digital assets out for yourself. Include assets like:
- Usernames
- Passwords
- Cryptocurrencies you own
- Exchanges on which they exist
- Social media profiles
On a separate document, include the passwords and other credentials. Keep this somewhere safe. Never include passwords directly in your estate planning documents unless specifically advised by your attorney.
2. Use a Password Manager or Digital Vault
Digital vaults and password managers can help you remember and safely store your credentials. Talk to your attorney about trusted sources.
3. Appoint a Digital Executor
Pick someone you trust to be the digital executor. This might be someone different than the executor to the rest of your estate. For example, you may fully trust your executor, but perhaps they are not experienced enough with the technology to do the job well, even if they try.
4. Update Your Estate Planning Documents
Work with an Illinois estate planning attorney to revise your will, trust, and power of attorney to include digital asset provisions. Be specific about your digital assets and follow their advice.
Common Issues to Avoid When Protecting Digital Assets
- Failing to Authorize Access: Without explicit permission, your fiduciary may be locked out of critical accounts.
- Including Passwords in Your Will: Wills become public documents—never store sensitive login information there.
- Ignoring Sentimental Assets: Digital photos, videos, and messages may be priceless to loved ones. Don’t overlook them.
Why Digital Estate Planning Matters
You need a plan for all of your assets, including the digital ones. Otherwise, your loved ones may lose out on what you want them to get, or go through a hard time to get them transferred correctly.
By planning now, you can:
- Protect your online identity
- Ensure your privacy
- Preserve valuable or sentimental assets
- Reduce confusion
- Reduce conflict
- Comply with Illinois law
Get Help from an Illinois Estate Planning Lawyer: Protect Your Digital Assets
Estate planning in the digital age is more complex and requires specific knowledge. An experienced Illinois digital asset protection attorney can consult on your case and provide a personalized plan of action. Your hard work deserves protection, including the work into digital asset investment.
Let the experienced estate planning lawyers at Bielski Chapman, Ltd. help you protect your digital assets. Contact us today for a free consultation.