Incorporating digital assets into an estate plan

On Behalf of | Aug 18, 2018 | Probate And Estate Administration

It isn’t uncommon for Nevada residents to have digital assets like social media accounts or digital currency holdings. Currently, 42 states have laws that allow executors to manage digital assets like they do physical assets such as a home. However, even if they have the legal authority to access a digital account, they will need to know how to get into it.

Therefore, it is important to make a list of important passwords, PIN numbers and other authorizations needed to get into a digital account. These passwords and numbers can be put into a single list and kept in a safe place. Digital wallets can be put on a USB drive and stored in a safe deposit box. Individuals should be sure that the USB drive will work on a variety of different computers. If not, an executor or other authorized person should know which specific machine to use the drive on.

Individuals should make a list of each cryptocurrency that they hold and how large their holdings are. This list should be updated at regular intervals based on how active a trader is. Those who make frequent trades should update the list at least once a week. Less active traders can get away with updating their holdings once a month or once a year.

For many people, the estate planning process is an ongoing one. As a person acquires new assets, they will generally need to be incorporated into the plan. Trusts, wills and other plan documents will ideally be reviewed every few years to determine if they still meet a person’s needs. An attorney may assist in this process and make changes to plan documents if necessary.