The Importance of a Digital Estate Plan in Illinois

 Posted on November 11, 2024 in Estate Planning

As digital assets like social media profiles and cryptocurrency become more common, it is becoming more important to make arrangements for them in an estate plan. Illinois actually has laws that specifically address digital assets, but it is a fairly new aspect of estate planning. Many people fail to consider their digital portfolio, and this can create problems if beneficiaries cannot access online accounts or property. If you want to include your digital assets in your estate plans, speak with a knowledgeable Lombard, IL lawyer who can explain your options and offer relevant guidance.

What Are Digital Assets?

Any type of online property or content that someone owns or controls is considered a digital asset. Some of these are quite valuable. Common examples of digital assets include:

• Online accounts: Social media profiles, email accounts, and cloud storage accounts that could include personal files, photos, and documents are all digital assets that you can bestow on a beneficiary in your estate plan.

• Cryptocurrency: Bitcoin, Ethereum, and other digital currencies can have significant financial value. Anyone who wishes to use or benefit from it needs authorized access with private keys or passwords.

• Digital media and intellectual property: Digital content, including music, movies, and eBooks that you have purchased or created are included in this category. It also refers to original artwork, music, blog posts, or videos that you have uploaded or stored digitally.

• Financial online accounts: Some financial institutions offer online platforms where you may hold banking or investment accounts that need authorized access. Digital payment systems like PayPal, Venmo, and other accounts can hold significant balances that need to be addressed in an estate plan as well.

• Websites and domain names: Any website or domain name you own could be a valuable digital asset. It is a good idea to include these in your estate plan.

Why Should You Include Digital Assets in Your Estate Plan?

Digital assets can play an important role in your estate plan for several reasons, including:

• Access and ownership: After your death, your heirs or executor might need access to your online accounts or digital currencies to manage your estate, close accounts, or transfer ownership. Without proper planning, they could face significant barriers to accessing these assets.

• Security and privacy: Many digital assets, like social media and email accounts, contain personal or sensitive information. Without proper instructions in your will or trust, your loved ones may have difficulty securing your digital property, which could expose them to privacy risks.

• Financial value: Some digital assets, like cryptocurrencies or intellectual property, can be financially valuable. Clear instructions and access credentials are necessary to ensure these assets do not get lost or go unaccounted for.

Contact a DuPage County, IL Estate Planning Lawyer

When drafting an estate plan, many people fail to include their digital assets. Unfortunately, this oversight can lead to obstacles and loss for beneficiaries. A qualified Wheaton, IL estate planning attorney at A. Traub & Associates can help you review everything included in your online portfolio to ensure that your online presence, financial holdings, and personal data are handled according to your wishes after your death. Call us at 630-426-0196 to schedule a private consultation.