-- Most people now have a digital presence—email accounts, cloud-stored photos, cryptocurrency wallets, NFTs, and more. Yet few realize how significantly these digital assets impact an estate plan, explained estate planning attorney Michael Smith, founder of Smith Barid, LLC.
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Unlike the traditional search through filing cabinets or attics, today’s valuable information often exists entirely online. Smith emphasized that, alongside a standard estate plan, individuals should create a digital assets estate plan that includes passwords, login credentials, and instructions for accessing accounts. This information should be securely stored and paired with a designated legacy contact or executor.
Without such a plan, administrators can face major challenges. Tracking down digital assets can delay probate, complicate estate inventories, and create stress for grieving families. Some online assets may even disappear—Google, for example, deletes accounts inactive for two years, which can erase emails, documents, photos, and YouTube content.
Although probate court letters typically allow executors to access financial accounts, digital asset companies may not always honor them. Executors may need to invoke the Fiduciary Access to Digital Assets Act, increasing the time and cost of administration.
Cryptocurrency presents additional risks. “Accessing blockchain assets can be a minefield,” Smith noted. Crypto holdings rely on virtual wallets and private keys; without the key, the asset may be lost forever. Improper handling of digital keys—even by well-meaning relatives—can lead to litigation or IRS concerns during estate accounting.
With millions of Americans now owning digital assets, Smith stressed the importance of preparing for this new era of estate planning. The responsibility ultimately lies with the individual: passwords, private keys, and access instructions must be stored safely so executors can locate and protect these assets when the time comes.
Source: http://RecommendedExperts.biz
Contact Info:
Name: Michael Smith
Email: Send Email
Organization: Smith Barid, LLC
Address: 7393 Hodgson Memorial Dr #202, Savannah, GA 31406, United States
Phone: (912) 352-3999
Website: https://smithbarid.com
Release ID: 89179009
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