Planning Your Digital Estate in Florida
As our lives become increasingly digital, traditional estate planning must adapt to protect new forms of assets like cryptocurrency, social media accounts, and non-fungible tokens (NFTs). At Bleakley Bavol Denman & Grace, our Tampa Estate Planning Lawyers recognize that Florida residents need to prepare for the future by incorporating these digital assets into their estate plans.
What Are Digital Assets?
Digital assets include everything from social media profiles and email accounts to cryptocurrencies like Bitcoin and Ethereum, as well as NFTs, which are unique digital collectibles or artworks stored on blockchain technology. As more Floridians accumulate these types of assets, it becomes crucial to address how they will be managed after death.
Without a proper plan, these digital assets may become inaccessible, lost, or vulnerable to theft. Planning for them involves more than just listing passwords—it requires creating a comprehensive digital estate strategy that ensures your virtual legacy is preserved and distributed according to your wishes.
Cryptocurrency: A New Frontier in Estate Planning
Cryptocurrency poses unique challenges because it is decentralized, meaning there is no institution like a bank to provide account access if you pass away. Additionally, cryptocurrencies are stored in digital wallets secured by private keys or passwords. If these private keys are lost, the assets could be irretrievable.
To prevent this, Floridians should consider placing cryptocurrency in a trust. A digital trust can provide instructions for how cryptocurrencies should be accessed, managed, or distributed upon your death. Naming a trustee who understands the complexities of managing digital wallets ensures that these valuable assets are handled appropriately.
NFTs and Estate Planning
Non-fungible tokens (NFTs) are another emerging asset class that requires careful planning. NFTs represent ownership of a unique digital item, and they can hold significant financial value. Including NFTs in your estate plan involves specifying how these digital assets should be transferred to beneficiaries, as well as ensuring the technical steps needed for their transfer are clear.
One approach is to integrate NFTs into a trust or will. This allows you to clearly outline how these digital collectibles will be distributed, whether they should be sold, retained, or given to specific individuals.
Planning for Social Media and Digital Legacy
Social media profiles and email accounts may not seem as financially significant as cryptocurrency or NFTs, but they are an important part of your digital legacy. Without proper planning, families can struggle to manage or memorialize social media accounts after a loved one’s death. Facebook, for example, allows users to name a “legacy contact” who can manage the account after passing.
In Florida, incorporating instructions for social media accounts into your estate plan ensures that these profiles are managed in accordance with your wishes. This might include deleting certain accounts, converting them to memorial pages, or giving specific individuals access to manage them.
Steps to Protect Your Digital Estate
By taking proactive steps, Floridians can ensure their digital assets—whether cryptocurrency, NFTs, or social media accounts—are preserved and transferred according to their wishes. If you’re ready to plan your digital estate, contact Bleakley Bavol Denman & Grace for legal guidance.
Source:
investopedia.com/terms/e/ethereum.asp
