Planning for Your Digital Assets: What You Need to Know
, the famous actor from the “Fast and Furious” movies, passed away in 2013. Since then, his legacy has been honored in many ways. Recently, some third parties started selling NFTs with his name and image. His family and are upset about how these assets were sold.
Paul Walker, the actor from the “Fast and Furious” movies, passed away in 2013. Since then, his legacy has been kept alive through car shows and digital collectibles. Recently, some people started selling NFTs with his name and image. His family was upset about how these items were being sold.
Even though Paul Walker’s estate had a will and trust, the rise of digital items, like NFTs, has brought up new legal questions. Who owns the rights to these digital items? Who can sell NFTs using his image? How does the estate manage these digital assets?
These questions are not just for celebrities. They are important for anyone who has digital things of value.
What Are Digital Assets?
Digital assets are things that exist online and can have value. These can be money, pictures, music, or anything else that can be saved or used on the internet. Here are the main types of digital assets:
- Money-Related Digital Assets
- Cryptocurrencies (Bitcoin, Ethereum)
- Digital wallets (Coinbase, Metamask)
- Online payment accounts (PayPal, Venmo)
- Content and Media Rights
- NFTs (Non-Fungible Tokens) and digital art
- Music, videos, and photos
- Blogs or websites
- Social media accounts
- Personal and Family Assets
- Email accounts
- Cloud photos and videos
- Important family documents
- Access and Security
- Password managers (e.g., LastPass)
- Two-factor authentication tools
- App logins and subscriptions
Even a small estate today may have many digital assets. Without a plan, they can be lost or hard to access.
Why Digital Estate Planning is Important
Digital assets don’t follow the same rules as regular property. Without a plan, they might get lost or misused. Here’s why it’s important to include digital property in your estate plan:
- Accessing Assets
If your heirs don’t know what digital assets you have, they might never be able to access them. Many platforms require a special digital executor to manage your accounts after you pass. - Who Owns What?
Some digital assets, like NFTs, may not give full ownership of the content. Without clear instructions, your heirs might not know what rights they have. - Rights Can Keep Earning After You Pass
Some digital rights, like your name or image, can keep earning money after you die. If these aren’t properly managed, others may misuse them. - Preventing Hacking or Scams
A deceased person’s social media accounts can be hacked or misused if they are not handled correctly.
How to Plan for Digital Assets
Here’s how to protect your digital assets:
1. Create a List of Your Digital Assets
Start by writing down all of your digital accounts. This list can include:
- Crypto accounts and wallets
- Cloud storage accounts
- Email accounts
- Financial apps and services
- NFTs and digital art
- Websites and blogs
Include your usernames, passwords (stored safely), and any instructions for accessing them.
Tip: Use a secure password manager that lets you share access with someone trusted after you pass away.
2. Assign a Digital Executor
A digital executor is a person who will manage your digital assets after you pass. Choose someone you trust who knows about technology. Be sure to include their role in your will or trust, and tell them what they can do (e.g., delete, transfer, or save your digital assets).
3. Use Legal Tools
Digital assets need special planning:
- Wills: Wills are good for general property, but they may not give access to digital accounts.
- Trusts: Trusts are better for managing ongoing income from digital assets, like YouTube or NFT royalties.
- Powers of Attorney: These allow someone to manage your assets if you become unable to do so.
- Platform Tools: Some platforms, like Facebook, allow you to name a legacy contact who can manage your accounts after death.
4. Clarify Ownership of Digital Content
If you create things like art, music, or writing, work with a lawyer to make sure your rights are clear. Keep records of your NFTs and any licenses that go with them.
5. Review Your Plan Regularly
Digital assets change quickly, so it’s important to review your plan at least once a year to keep it up to date.
Common Mistakes in Digital Estate Planning
Avoid these mistakes:
- Not Sharing Your Digital Assets
Keeping your digital life a secret can cause problems for your heirs after you pass away. - Using Outdated Password Lists
Written password lists can get old fast. Use a password manager that stays up to date. - Ignoring Terms of Service
Some websites don’t allow anyone else to access your account after you pass. Name a digital executor to handle this. - Thinking NFTs Will Always Have Value
Not all NFTs are valuable forever. Be sure to explain what should be done with them in your estate plan.
How Attorneys Can Help
Digital estate planning can be tricky. An estate planning attorney who understands digital assets can:
- Add digital asset planning to your will or trust
- Help you list and organize your digital assets
- Ensure your plan follows the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA)
- Work with tech professionals to make sure your assets are secure
An attorney can also help prevent disputes, like the one with Paul Walker’s digital memorabilia, by making sure your legacy is protected.
Plan Your Digital Legacy Today
The Paul Walker case shows how managing digital assets can be tricky. Whether you’re a celebrity with NFTs or someone with a crypto wallet and family photos, you need a plan for your digital assets.
Start planning now. Make sure your estate plan includes both your physical and digital legacy.