Most estate planning revolves around tangible assets. This includes money that people have in bank accounts, real estate that they own and much more. It can even include collections, family heirlooms and home furnishings.
These days, however, people own more and more digital assets as well. How can these be incorporated into an estate plan?
It depends on the type of asset
There are ways to incorporate some digital assets into an estate plan and pass them on to heirs and other beneficiaries. An example could be if you have purchased cryptocurrency. This is essentially a financial asset, although it is a digital currency, so it only exists online. Nonetheless, it may be possible for you to use your estate plan to give a beneficiary access to your cryptocurrency wallet. Another way to pass it on could be to withdraw the funds, put the money in a trust in U.S. dollars for a beneficiary.
Minor digital assets, like movies, video games or e-books, generally cannot be handed down in your estate plan. The issue is that purchasing these types of assets usually means you are just purchasing a license that allows you to use that digital asset whenever you want. You cannot transfer the asset to someone else, and you do not actually own the software. Therefore, it is not part of your estate plan – even if you have invested hundreds or thousands of dollars in these digital products.
Estate planning these days can get complex, so be sure you know exactly what legal options you have. Having experienced estate planning guidance can help you find the best options for your needs.
