As the use of technology continues to grow, businesses rely more and more on organizing, storing, and processing information digitally. It has become so second nature that we may not even be aware of how valuable this digital information can be. Not only is it important to protect your digital assets today, but you need to consider including these assets in your Estate Plan or Business Succession Plan. These processes help to address the management and distribution of your digital assets in the event of ones planned or unplanned passing/transition.
What type of information would be considered a digital asset? We have compiled a list of the most common digital assets. Many businesses may also have unique digital assets, some of which may not be listed below.
- Electronic communications (Email, WhatsApp)
- Social networking sites (Facebook, LinkedIn, Twitter, Instagram)
- Blogs or Digital Diaries
- Online reward programs (Such as hotels, credit cards, airlines etc.)
- Bank Accounts (PayPal, Venmo, Cash app, cryptocurrencies, investments, brokerage accounts, sports betting websites)
- Digital Collections (Music, videos, photographs, gaming platforms)
Failing to prepare your estate or business’ digital assets can leave them subject to terms-of-service agreements. Federal or state laws may not grant access to the fiduciaries of an estate who make a claim to these assets. Chasing down important electronic communications, forms of payment, or actual assets stored and tracked digitally would be a daunting task without an organized list or inventory of such logins, passwords, and assets.
We suggest taking the time to create an inventory of your digital assets. Begin by thinking about the things you would want your successors or beneficiaries to have access to. Is there a login link, name, password, and note you could leave for that asset? Expand that list to include digital assets that might have more emotional value such as a story written or pictures you took of friends and family. Make sure this is all encompassing and updated regularly. Also make a note of this document somewhere that would be easily accessible should the unplanned death or transition from your business occur.
The Presser Law Firm specializes in Asset Protection Planning and integrated Estate Planning. We also work with businesses to create a Business Succession Plan for the continued growth and success of a business after your transition from active leadership or ownership. Contact us today to schedule a complimentary preliminary consultation.
The Presser Law Firm, P.A.
6199 N. Federal Highway, Boca Raton FL 33487
(561) 953-1050 or e-mail Info@AssetProtectionAttorneys.com