In the modern age, a person is just as likely — or even more so — to own digital assets as traditional ones, like a house or savings account. However, such a new area of estate planning can make the wills and probate process more complicated. Here's how to approach it successfully. 

What Are Digital Assets?

The category includes both physical and non-tangible items. The most common are hardware and data. The former includes laptops, tablets, and smartphones, while the latter involves digital items with and without monetary value. 

The list includes e-commerce accounts, cryptocurrencies, and intellectual property that lives virtually, like a patent. Other digital data assets, such as music, photographs, and social media accounts, can still harbor sentimental value to loved ones. 

Which Ones Can Be Distributed?

Not all digital assets can be included in the wills and probate processes. Those that can be written into a will include digital funds, cryptocurrency, documents, and owned music, photos, and art. Elements that can't be passed on to beneficiaries include subscription accounts, like music, television, and movie streaming services. Most software, like for taxes or bookkeeping, also prohibits the transfer of ownership. 

How Do You Include Them in a Will?

Most digital assets require system or platform access, which the beneficiary can't get into without the passwords. Additionally, data privacy laws make it complicated or even illegal to provide the necessary details to anyone other than the original owner. For these reasons, it's important to outline digital asset designations in a will and give them the details necessary for access.

Start by creating a master list of all hardware and data. Outline instructions that name the location of each item and include all the important passwords. It's also useful to create backups of digital assets by saving a copy. Finally, work with an estate planning attorney to create or update a will to outline who has access to which assets and provide them with a copy of the master list for safekeeping.

Cronin Skilton & Skilton, P.L.L.C. works with residents across Floyd and Chickasaw counties in Iowa. The attorneys provide personalized guidance for various aspects of estate planning law. From wills and probate to trusts, the team understands the complexities of estate distribution, including how to effectively plan for digital assets. Find out how the estate planning attorneys can assist you online or by booking a consultation at (641) 435-2462 in Nashua and (641) 228-3318 in Charles City.