Digital Estate Planning: Managing Your Online Assets

The Society of Estate and Trust Practitioners of Canada (STEP Canada) has been at the forefront of raising awareness about the importance of digital estate planning. Their research highlights the significant gap in public understanding and action regarding digital assets.

According to STEP, 60% of people do not consider their digital assets when planning their estate. This indicates a pressing need for increased awareness and education on this topic.

• Twice as many people prioritize their sentimental digital assets over financial ones (64% vs. 32%).
• Despite the priority given to sentimental assets, 57% of respondents had no plans to pass these assets on.
• Only 3% of respondents had used digital legacy tools provided by platforms like Google and Apple. 
• People in the 35-55 age range were most concerned about their digital assets.

In response to these findings, STEP launched a public campaign to raise awareness about digital estate planning. They focused on the sentimental value of digital possessions and provided simple actions people can take to protect these assets.

Actions Included: 

1. Advising people to update legacy settings on platforms like Apple and Facebook.
2. Advising people to discuss digital asset plans with family.
3. Sharing educational resources to help people understand digital estate planning.

One of the main challenges in digital estate planning is the lack of awareness. Many individuals and even professional advisors overlook the importance of digital assets. This oversight can lead to significant gaps in estate planning.

Raising awareness about the significance of digital assets is the first step in overcoming this challenge. Educating individuals and advisors ensures that digital assets are appropriately accounted for and managed.

Legal and technical obstacles can complicate the management of digital assets. Different platforms have varying policies regarding account access and transfer after death, and understanding these policies can be cumbersome and time-consuming.

Consulting with an estate planning expert can help you streamline this process and ensure compliance with all relevant regulations. This guarantees that your beneficiaries won't face the hassle of accessing multiple platforms in the event of your passing.

Ensuring that sensitive information is protected while making it accessible to designated individuals is something you will want.

Implementing robust security measures and clearly defining access protocols can help mitigate these concerns. It is also important to use secure storage solutions for passwords and login information.

Accessing digital accounts after the account holder's death can be challenging. Many platforms have strict policies that make it difficult for heirs to gain access without proper documentation.

Planning ahead by including specific instructions and necessary documents in your estate plan can ease this process. Designating a digital executor can also help manage these accounts efficiently.

Identifying and locating all digital assets can be a daunting task. People have digital assets scattered across various platforms, some of which they might not even remember. This can include everything from email accounts and social media profiles to online subscriptions and digital wallets.

To address this challenge, creating a comprehensive inventory of all digital assets and your associated login information is essential. This inventory should be stored securely but accessible to trusted individuals who will manage your estate. Regularly updating it ensures that no digital assets are forgotten or overlooked.