Do your older parents need a digital estate plan?

On Behalf of | Jan 15, 2025 | Estate Planning |

If your parents are advancing through their Golden Years, even if they rarely go online, they likely have a digital presence. Older adults may not be active on social media or own cryptocurrency, but almost all adults living in the U.S. possess digital assets that may require careful management after their passing. 

Why does this matter? Ensuring that your parents have a digital estate plan in place can prove to be an important step in protecting their legacy. A digital estate plan is a document that outlines instructions for handling digital assets after someone’s death. Digital assets can include:

  • Online Accounts: Email, online banking, retirement fund portals or subscription services
  • Stored Data: Photos, videos, and documents on cloud storage platforms like Google Drive or Dropbox
  • Health and Insurance Accounts: Patient portals and health-related apps
  • Financial Tools: Accounts with online bill payments, digital investments or payment apps like PayPal

Even older adults who rarely engage online may still have these types of accounts, which need proper management to prevent issues like unauthorized access or lost funds in the event of their incapacitation or passing. 

Why a digital estate plan may prove valuable

Crafting a digital estate plan now can help to ensure that you and your loved ones have access to the above-mentioned assets when that need becomes a reality. Without access to online accounts, you may struggle to close or manage effectively. This can lead to unpaid bills, subscription fees continuing to accrue or even fraudulent activity.

A well-organized digital estate plan can also help to ensure that sensitive information, such as email communications or personal photos, is protected from unauthorized access or misuse. And, of course, many older adults have family photos or important documents stored digitally. A clear plan can help to make sure that these assets are preserved and sharable.

Although your parents may be resistant to the idea of creating a digital estate plan, it is likely an effort well worth their time and energy.