Slide presentation about digital asset planning.

1. How to Inventory and
Protect Your Digital Assets
Dr. Barbara O’Neill, CFP®, AFC®
Owner/CEO, Money Talk
https://www.moneytalkbmo.com/

2. Disclaimer

3. What is a Digital Asset?
Any personal information stored electronically on
either a computer or online “cloud” server

4. Two Questions
• How many digital assets do you own?
• What is their value (monetary and/or
sentimental)?

5. Digital Asset Statistics
Number of Digital
Assets: The average
American has 25 “discrete
logins”…but this may be
understated, especially
among higher-income
individuals
You: Prepare a digital
asset inventory
https://www.bnymellonwealth.com/asset
s/pdfs-strategy/thought_planning-for-
and-protecting-your-digital-assets.pdf
Average Value of Digital
Assets: The average
American has $55,000 in
digital assets…but this is
much higher for wealthy
investors
You: Prepare a net
worth statement
https://www.kiplinger.com/article/retireme
nt/t021-c032-s014-how-to-protect-your-
digital-assets.html

6. Don’t Be This Person!

7. Answer These Questions
• What are your digital assets? Do you have a list?
• Do you know how to access them?
• Does your family know how to access them?
• Does your family know what to do with them?
• What will happen to them if you become
incapacitated or die?

8. A True Story: December 2014
Jerry Bronson,
died 12/15/14
at age 78

9. My Reaction: It Shouldn’t
Have to Be This Hard!
https://njaes.rutgers.edu/money/pdfs/Digital-Assets-Worksheet.pdf
• 5 pages long; fill in
the blanks
• Expect to take 4-5
hours to complete it
• Upgrade your
security protocols as
you “back test” your
logins (e.g., 2-factor
authentication)

10. Another Useful Resource
https://www.lfg.com/wcs-static/pdf/LFN_Digital_Asset_Checklist.pdf
Use to identify general
types of digital asset
categories that you have

11. Why Digital Asset Planning?
• Prevent financial losses to an estate
• Avoid losing the deceased’s story (e.g., photos)
• Avoid identity theft
• Make things easier for survivors
• Make things easier for fiduciaries
• Protect private information
• Avoid “creepy” situations

12. Five Step Planning Process
• Step 1: Initial identification of digital assets
• Step 2: Detailed digital asset inventory
– Master password list (most common method)
– Password manager programs
• Step 3: Determine goals for digital assets
• Step 4: Consider estate planning document
revisions (e.g., naming a tech-savvy digital executor)
• Step 5: Review and/or revise regularly

13. Password Manager Programs
• Vendors charge fees to use these programs; some
have limited free versions
• Designed to minimize hacking and the need to
remember multiple passwords
• Program names include: LastPass, 1Password,
KeePassXC, Dashlane, RoboForm, RememBear,
Keeper, and Bitwarden
• 2022 Review: https://www.cnet.com/tech/services-
and-software/best-password-manager/

14. Digital Asset Categories

15. Electronic Devices

16. Benefit Accounts

17. Email Accounts

18. Financial Accounts

19. Online Merchant Accounts

20. Member Organization
Accounts

21. Photography/Music Sites

22. Publication Accounts

23. Social Media/Video Accounts

24. Virtual Currency Accounts

25. Website Accounts

26. Digital Asset Dilemmas
• Future of social media accounts: close or create a memorial
tribute? Save contents (e.g., photos) first?
– Facebook: Can assign a “legacy contact”
– Google: Can assign an “inactive account manager”
• Nontransferable licenses (e.g., iTunes)
• Frequent flyer points; some may be transferable
• Credit card cash-back/points; some may be claimable
• PayPal accounts with money
• Internet domain names
• Small business website; continue the business?

27. RUFADDA
• Revised Uniform Fiduciary Access to Digital
Assets Act, a new law for the Internet Age
– Adopted in Florida in 2016
• Provides legal authority for a fiduciary to manage
DA in accordance with the user’s estate plan
– Example: Pay debts/fees on behalf of the digital estate
• Typically executors/administrators of deceased
persons’ estates, court-appointed conservators,
PoA agents, and Trustees

28. Three Estate Planning Tips
• Include specific language in documents (will,
trust, PoA) that designates a “digital fiduciary”
• Review “terms of service” for online accounts
– Some may require a death certificate to access or delete
a deceased person’s account
• Refer to your digital asset inventory in your will
like you would refer to a list of untitled property
– Do NOT include IN your will (public document)

29. Final Thoughts
• RUFADAA formally recognized digital assets as
property that needs to be managed
• Individuals need to do the same
• State digital assets laws vary
• A digital asset inventory will minimize stress and
save hours of time and money (e.g., having a law
firm bill an estate for time to locate digital assets)

30. Comments? Experiences?
Questions?
Suggestion:
Inventory your digital assets for 10 minutes a day