How to Create an Estate Plan That Accounts for Digital Assets in North Carolina
Creating an estate plan that accounts for digital assets is essential for ensuring that your online presence and digital possessions are properly managed after your passing. In North Carolina, estate planning laws encompass various aspects of asset management, including digital assets. Here’s a comprehensive guide to help you through the process.
1. Understand What Digital Assets Are
Digital assets include any online accounts, social media profiles, digital currencies, or online subscriptions that you own. Common examples are:
- Email accounts
- Social media profiles (Facebook, Twitter, Instagram)
- Online banking accounts
- Digital files (photos, videos, documents)
- Cryptocurrencies
- Domain names
2. Inventory Your Digital Assets
The first step in your estate plan is to create a comprehensive list of all your digital assets. Document login information, passwords, and any other relevant details. Consider using a password manager for secure storage and organization.
3. Choose an Executor for Your Digital Estate
Select a trustworthy individual to handle your digital assets along with your other estate responsibilities. This person, sometimes called a “digital executor,” should be knowledgeable about technology and privacy issues. Ensure that they are comfortable managing your online presence.
4. Include Digital Assets in Your Estate Plan
When drafting your will or trust in North Carolina, explicitly include your digital assets. Be specific about what you wish to happen with each account after your passing. For example, you might want to grant access to a family member, delete accounts, or memorialize social media profiles.
5. Ensure Compliance with State Laws
North Carolina follows the Uniform Fiduciary Access to Digital Assets Act (UFADAA). This law allows fiduciaries (executors or trustees) to access digital assets after a person's death or incapacity, provided they have the legal authority to do so. Make sure your estate planning documents are compliant with local laws.
6. Use a Digital Asset Management Service
Consider using a digital asset management service that allows you to store your passwords and digital asset information securely. These services can provide your digital executor with necessary access when the time comes.
7. Communicate Your Wishes
Share your estate plan with the executor and trusted family members. Discuss your wishes regarding your digital presence and assets to avoid confusion and ensure that your instructions are followed.
8. Review and Update Regularly
Digital assets can change frequently due to new accounts being created or old ones being closed. Regularly review and update your estate plan to reflect any changes in your digital asset inventory or your overall wishes.
Conclusion
Creating an estate plan that accounts for digital assets in North Carolina involves careful consideration and proactive steps. By following these guidelines, you can ensure that your online presence is managed according to your wishes, both for your loved ones and for the legacy you want to leave behind.