Estate planning provides for the transfer of your assets through a will or a trust. These traditional estate planning documents do not specifically mention digital assets, despite the fact that almost everyone now has at least some digital assets. This traditional estate plan formula has worked for decades to transfer the assets of a decedent down to his or her heirs and beneficiaries. However, in the wake of the digital age, these instructions and documents may not be enough to transfer all of your digital assets.

It has become the norm to store financial records in smartphones, computers, or the cloud, and to conduct financial transactions electronically. It is likely that you will need to take additional steps during your lifetime to ensure that the digital assets of your estate make it to the beneficiaries that you choose.  Passwords, data encryption, criminal laws, and data privacy laws can present challenges for anyone other than the original owner to gain access to their digital assets. Family photos and videos could be lost forever, social media accounts could stay online long after you’ve passed, and your heirs may not receive all the money that you’d like to see come their way.

What is digital estate planning?

Basically, digital estate planning entails the process of cataloging, organizing and planning for the disposition of one’s digital assets after death. Accounting for digital property in your estate plan has become essential. Fortunately, it’s relatively simple to do. To begin preparing for the transfer of your digital assets, keep a thorough list of your digital assets and update it frequently; review the terms of service of your providers for procedures to backup and transfer those assets; and discuss your options for the transfer of these.

Why is this important?

Without proper planning, the asset or portions of the asset may not be transferred to those beneficiaries as you intended. Second, failing to properly plan for the transfer of digital assets can create losses to your estate financially and to your heirs emotionally.  For example, if you receive only digital statements for your bank or brokerage accounts, your estate representative may not be aware of the existence of these financial accounts, even though they can be easily transferred by visiting the brick-and-mortar location. Providing a list of the digital assets, including these financial accounts, will alert your estate representatives to their existence and location.

What can you do now?

There are several steps that you can take now to prepare for your digital assets to be properly transferred at your death. Start by creating a list of your digital assets, their respective passwords, and location in which each is stored. If your digital assets are social media accounts such as Google email or Facebook, make sure to review the terms of service for the instructions of restrictions regarding the transfer of the asset. Next, determine who should receive each of your digital assets that are transferable.

Once the above is completed, you should save the assets stored on your computer into something tangible such as an external hard drive in a secure place. Unlike other assets, it is possible to make multiple copies of digital assets and leave the digital assets to more than one beneficiary. Make sure to let your family members or friends know how to access your list. Finally, work with an estate planning attorney to update your wills, powers of attorney, and any revocable trusts.  They should include language giving lawful consent for providers to access the digital assets to the appropriate people.

If your estate plan doesn’t account for digital assets properly, your heirs may not have access to them. Talk with your attorney about the steps you can take now, and check in regularly, to update your estate plan to accommodate any changes in the law or in your digital property. Consult with one of our experienced attorneys today by scheduling an appointment at (614) 452-9724. We look forward to working with you!

The information presented here has been prepared by Charles H. McClenaghan, LLC, for promotional and informational purposes only and should not be considered legal advice.  This information is not intended to provide, and receipt of it does not constitute, legal advice.  Nor does the receipt of this material create an attorney/client relationship.  An attorney client relationship is not established until such time as Charles H. McClenaghan, LLC, enters in to a written engagement agreement with a specific client for a specific legal matter.

LEGAL NOTICE:  THIS MESSAGE IS AN ADVERTISEMENT AND SOLICITATION.

The post Change with the Times: Estate Planning For the Digital Age appeared first on Charles H. McClenaghan, LLC.

The best time to plan your estate is now. Individuals put off estate planning because they think they don’t own enough, they’re not old enough, they’re busy, think they have plenty of time, or they just don’t want to think about it. Believe it or not, you have an estate. Your estate consists of everything you own when you die, including your car, jewelry, home, other real estate, checking and savings accounts, investments, life insurance, furniture, retirement plans, etc. If you die without a will or living trust, state law will determine how most of your belongings are distributed, and the result may not be what you would want. By forming an estate plan, you can protect your assets and family’s interest in the manner you want to.

No matter how large or how modest, everyone has an estate and something in common—you can’t take it with you when you die. Estate planning should always be done with your goals and objectives in mind.

What are the type of questions you should be thinking about?

If you are incompetent or unable to make decisions, who will call the shots?

Who gets what when you are gone?

Trust…Will… Both? What makes sense for you?

If you have a surviving spouse, does it all go to your spouse?

Who will take care of your children and pets?

Do you want to plan for your elderly parents?

How can I plan for future grandchildren directly rather than have them receive their parent’s share of my estate?

What can estate planning accomplish? What CAN you control?

• Reduce Estate Taxes
• Protect your family’s privacy by preventing your will from becoming a public record
• Avoid a Mess
  • Avoid Probate
  • Reduce stress for your loved ones
• Protect your spouse, children, and pets
• Choose a guardian and an inheritance manager for minor children
• Protect your children’s inheritance who may need future protection from creditors or possible divorce
• Provide for children and family members with special needs
• Protect assets from creditors
• Protect assets from ending up with unintended beneficiaries
• For children, control the time, amount, and conditions for when they receive their inheritance
• Provide enough cash to meet expenses and prevent the forced sale of assets
• Include instructions for your care if you become disabled before you die
• Eliminate family messes when you are gone
• Control all your assets while you are alive and healthy
• Choose who will have the control and make health care decisions for you in the event of your incapacity

Don’t be caught off-guard and unprepared when incapacity or death happens. What you put in writing now can always be changed later. In fact, this is how estate planning should be done as your life progresses. Another benefit from estate planning is having a peace of mind and knowing you have a properly prepared plan in place- A plan that contains your personal instructions and will protect your family. This is one of the most thoughtful and considerate things you can do for yourself and for those you love. Don’t wait – start or update your estate plan today!

Becca Hamilton is a Law Clerk at Charles H. McClenaghan.  To read more about our firm, please visit www.lawdublin.com.

The information presented here has been prepared by Charles H. McClenaghan, LLC for promotional and informational purposes only and should not be considered legal advice.  This information is not intended to provide, and receipt of it does not constitute, legal advice.  Nor does the receipt of this material create an attorney/client relationship.  An attorney client relationship is not established until such time as Charles H. McClenaghan, LLC enters in to a written engagement agreement with a specific client for a specific legal matter.

LEGAL NOTICE:  THIS MESSAGE IS AN ADVERTISEMENT AND SOLICITATION.  TO OPT OUT OF FUTURE MESSAGES, PLEASE REPLY TO: BECCA@LAWDUBLIN.COM WITH “UNSUBSCRIBE” OR SEND REGULAR MAIL TO:

CHARLES H. MCCLENAGHAN

3956 BROWN PARK DRIVE, SUITE B

HILLIARD, OH  43026

The post Estate Planning is for Everyone; Be Prepared for the Unthinkable appeared first on Charles H. McClenaghan, LLC.