Digital assets in estate planning in Nevada is something that Nevada residents need to consider when it comes to protecting their last wishes. It can be easy to forget about digital assets since they may not be on top of mind; however, this can be an important part of getting your finances in order for the future.
Navigating digital assets in estate planning in Nevada can be overwhelming, which is why you should consider hiring a Nevada estate planning attorney. At Morris Estate Planning Attorneys, our collective years of experience have equipped us with the knowledge we need to help our clients protect their digital assets in Las Vegas. Keep reading to find out how to protect online accounts after death in Nevada and whether or not you need a digital executor.
What Are Digital Assets?
You may think that you do not have digital assets if you do not have things like cryptocurrency or other types of online investments. However, that may not be the case, as everyone usually has some form of digital asset in today’s world.
The most common types of digital assets that just about anyone has includes things like online bank accounts. You may also have other types of online financial accounts, investments, and cryptocurrency.
Something to keep in mind as well is that digital assets are not just limited to financial assets. Assets can also include anything of sentimental value that you wish to pass on to your beneficiaries after your death. Because of this, things like digital photos and social media accounts can also be considered digital assets.
You may have digital assets connected to your business or other assets that beneficiaries would need access to, such as email accounts and domain names.
Risks of Excluding Digital Assets from Your Estate Plan
Managing digital assets after death can be very tricky for your beneficiaries if they have not been incorporated into your estate plan. This can create a variety of complications that will just add stress to an already emotional situation.
The most common risks include identity theft or data loss, especially during your beneficiaries’ attempts to access certain assets. Certain financial assets may also experience a loss in value if they are monetized accounts, investments, or crypto.
The most common risk for your beneficiaries is the possibility of inaccessibility after your death. This could result in valuable or sentimental digital assets being lost forever.
How to Incorporate Digital Assets Into a Nevada Estate Plan
Before beginning planning for your digital assets, it is strongly recommended that you hire a Nevada estate planning attorney to assist you. Not only can they help you create a digital estate plan, but they will also ensure you are following Nevada estate planning laws.
Here are the steps you need to take when it comes to managing your digital assets:
- Take inventory of all digital assets, including bank accounts, cryptocurrency, investments, emails, websites, etc.
- Determine the value of each asset, including whether they are a financial or emotional value.
- Name a digital executor or fiduciary over your digital estate.
- Include your digital assets in your will or trust with provisions for how they should be managed and distributed.
- Provide additional legal documents to grant authority, such as durable power of attorney, trust documents, online custodian consent forms, and letters of introduction.
Best Practices for Digital Estate Planning
After creating your digital estate plan, there are additional steps you should take to finalize this process. After all, digital assets can be a bit tricky to manage and keep track of, and you want to do everything in your power to make this as straightforward a process as possible.
Here are some best practices to create a more transparent digital estate plan that will be easy for your executor and beneficiaries to follow:
- Keep written records of passwords and keep them in a secure spot.
- Regularly update your digital asset inventory to reflect changes.
- Let your beneficiaries know about the digital assets they will get access to upon the time of your death.
- Keep written records of additional asset information, such as URLs, answers to security questions, usernames, and account names.
If you have not already done so, you should also hire an estate planning attorney to ensure you are following all of Nevada’s estate planning laws. These can change year to year, and you must be compliant for your digital estate plan to be valid.
FAQ Section
What happens to my email or social media accounts after I die?
If you have included these digital assets in your estate plan, access to them will go to the designated beneficiary. Otherwise, these accounts may be more difficult to access and manage when the time comes.
Can I include cryptocurrency in my estate plan?
Yes, cryptocurrency is a very important digital asset that needs to be included in your estate plan.
What is a digital executor, and do I need one in Nevada?
A digital executor does the same job of a normal estate plan executor, except they are managing digital assets. They will be responsible for ensuring your last wishes are upheld, the assets are distributed to the right beneficiaries, and the assets are dealt with legally. It is essential that you appoint a digital executor over your digital assets to ensure they are distributed correctly upon the time of your death.
Contact a Dependable Estate Planning Attorney at Morris Estate Planning Attorneys
Many people in Nevada may need an estate plan for cryptocurrency or other types of online assets. These are things that need to be part of your estate plan to ensure they go to the right beneficiaries and aren’t forgotten about.
At Morris Estate Planning Attorneys, our estate planning lawyers are dedicated to providing our Nevada clients with the legal assistance they need as they begin digital legacy planning. Contact us today at 702-471-0990 to schedule a meeting with one of our attorneys.