Most Americans of means understand that the process of estate planning is consequential when it comes to preserving wealth and working to ensure that assets are passed on according to their wishes.
These days, the focus of estate planning is no longer just on real estate, investments and trusts. It must also address the realities of digital assets. From financial accounts managed online to intellectual property, social media accounts and business-related digital assets, failing to incorporate these elements into an estate plan can lead to financial loss, legal disputes and security risks.
The importance of digital assets is growing
Wealthy Americans often have extensive digital footprints that include personal, financial and business-related assets. These assets may hold significant monetary or sentimental value and should be handled with the same level of care when planning as traditional assets. Key digital assets that require careful estate planning include:
- Investment and online financial accounts: Brokerage accounts, online banking and fintech investments should be accounted for in estate plans to ensure beneficiaries can access and manage them.
- Business-related digital property: Many wealthy individuals own businesses with digital assets such as websites, domain names, cloud storage and intellectual property, all of which need proper succession planning.
- Social media and digital legacy: Personal and business-related social media accounts may have reputational and sentimental value. Some platforms allow users to designate legacy contacts or request account removal upon death.
- Intellectual property: Patents, copyrighted materials and digital royalties require clear legal instructions for future management.
To better ensure that digital assets are properly managed and transferred, high-net-worth individuals can benefit from seeking personalized legal guidance tailored to their unique estate planning needs.