How to account for digital assets in an estate plan

On Behalf of | Feb 7, 2019 | Estate Planning

As more assets are being held or stored online, it can create challenges for Nevada residents when it comes to estate planning. For example, an individual must remember to divulge the username and password of any account that is held online. Furthermore, there may be questions over who owns a digital asset and who may access it after a person dies. These are important questions to answer as digital assets may have real value.

For instance, money in an online bank account or credit card reward points could both be considered a digital asset. A study revealed that a typical American had around $55,000 worth of these types of assets in 2013. It is also important to secure assets because they could be vulnerable to abuse by others. In many cases, individuals use the internet to pay bills or to do their banking.

Without access to those accounts, it may have a negative impact on an individual’s credit score or family finances in general. Accounts that are left unprotected may expose a person to identity theft or other crimes using his or her personal information. Therefore, it is a good idea to account for them in a will or other estate plan document that has been prepared or reviewed by an experienced attorney. This may make them easy for an executor or other authorized person to find, access and close down if necessary.

Through will planning, it may be possible to better account for digital and traditional assets. This may make it easier to transfer money in a bank account or close a credit card account.