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Estate Planning in the Digital Era:
With the rise of digital technology, the face of estate planning is rapidly changing, introducing novel elements that both professionals and clients must grapple with. DeFreitas & Minsky LLP, a certified public accountant in New York, is well equipped to guide you through this new adventure, clarifying the cloudy areas and suggesting actionable digital estate strategies. This article will delve into the uncharted territories that a majority of blogs typically don’t cover, allowing a deeper exploration of the fascinating intersection between estate planning and digital advancement.
Emerging Importance of Digital Assets:
Living in the 21st century, our lives are intrinsically linked with the digital world. A substantial portion of our assets has shifted from tangible to intangible digital form. Research indicates that the average value of a person’s digital assets is currently estimated at $35,000, including items such as photos, digital music, movies, e-books, cryptocurrencies, and a myriad of online accounts.
The importance of digital assets can’t be underestimated. For instance, digital photos and social media accounts often hold sentimental value, acting as repositories of our personal histories and relationships. Financially, assets such as digital currencies can hold significant monetary value. However, these virtual assets are often neglected during traditional estate planning, which could lead to loss and mismanagement after the owner’s demise.
The Evolving Legal Landscape:
Estate laws, which were traditionally developed in the tangible asset era, are struggling to keep pace with the digital evolution. As of 2021, only forty-six states have enacted legislation addressing access to digital assets post-mortem. The custodians of digital assets, usually technology companies, are caught in a legal quagmire, delicately poised between privacy laws and providing rightful access.
Proactive Digital Estate Strategies:
In this evolving landscape, DeFreitas & Minsky LLP emphasises the need for forward-thinking, digital estate strategies that increase transparency while cementing privacy:
- Create an inventory of digital assets and store them securely. This list should be updated regularly and must include information on how to access these assets, such as usernames and passwords.
- Express clear instructions regarding the fate of your digital assets, being as specific as possible. These can be written into a digital will which, despite not being legally enforceable in every jurisdiction, can provide clear mandates to executors and trustees.
- Designate a digital executor who is technologically savvy, and comfortable dealing with digital assets.
The Challenges of Digital Estate Planning:
Despite its importance, digital estate planning is fraught with unique challenges. For example, privacy laws such as the Stored Communications Act can limit executors’ access to information in email accounts or on social media platforms. Additionally, the various Terms of Service Agreements that govern our online interactions often do not contemplate user death or incapacity.
The Power of Outside Assistance:
The intricacies and complexities involved in digital estate planning make it pertinent to seek professional assistance. DeFreitas & Minsky LLP is thoroughly trained in digital estate strategies, providing adept guidance from planning to execution.
Digital Estate Planning: Not a Choice, But a Necessity:
As the underlying technology continues to evolve at breakneck speed, digital estate planning will inevitably become a necessity. It is crucial to consider your digital afterlife thoroughly, ensuring your online assets are as well-regulated as your physical ones.
In this highly digitised age, ignoring this sphere of estate planning could lead to significant losses. Therefore, it is in your best interest to adopt sophisticated digital estate strategies and, if possible, consult professionals such as DeFreitas & Minsky LLP.
Digital Era: The Future of Estate Planning:
No longer a mere abstract concept, the digital era is here to stay, profoundly influencing all sectors, including estate planning. To protect your digital legacy, it is imperative to evolve your estate plan in response to these digital advancements.
In conclusion, as DeFreitas & Minsky LLP’s digital estate strategy services reaffirm, estate planning in the digital era requires additional depth and sophistication. It’s no longer just about property and finances – your digital life must be considered and protected too.
