A Practical Guide to Organizing Documents and Accounting for Digital Assets
Something about Spring and longer days entices us to declutter and refresh our homes, gardens, and offices, which makes it a perfect time to tidy up one of the most important areas of your life: your estate plan.
Just as clutter accumulates in a home, estate planning documents can become scattered, outdated or difficult for loved ones to locate in an emergency. A spring-cleaning approach can bring order, clarity and peace of mind while ensuring that both your physical documents and your digital assets are fully protected.
Start With the Essentials
Begin by gathering all existing estate planning documents in one place. This includes your will, trusts, powers of attorney, health care directives, beneficiary designations, deeds, financial statements and insurance policies. Many people are surprised to discover that their documents are stored in multiple locations or that they are missing important pieces entirely.
Once everything is collected, confirm that each document reflects your current wishes. Look for outdated information such as former beneficiaries, old addresses, former executors, or assets you no longer own. If you have experienced major life changes such as marriage, divorce, the birth of a child, the purchase of property or changes in wealth, your plan may need updates to remain effective.
Review Storage and Accessibility
Even the most thorough estate plan is only helpful if the right people can access it when needed. Spring cleaning is the perfect time to evaluate how and where your documents are stored.
Consider the following questions.
Are your original documents stored in a safe and clearly labeled location
Does your executor or trustee know how to access them
Are copies stored digitally and protected with secure passwords
Are your advisors aware of how to contact each other
Avoid storing your only copy in a safety deposit box unless someone else has legal access. Many families face delays because the box cannot be opened without a court order. A fireproof home safe or a secure digital vault is often a better choice.
Don’t Forget Digital Assets
Digital assets are a big part of any comprehensive estate plan and can include financial accounts, cryptocurrency, online subscriptions, email accounts, photos, social media profiles, cloud storage and even loyalty points.
As part of your spring cleaning, make a list of your digital assets along with instructions for accessing them. This may include usernames, passwords, security questions and the location of two factor authentication devices.
Be sure your estate plan specifies who is authorized to manage your digital estate. Without this legal authority, loved ones may have difficulty accessing or closing accounts. Many states now follow the Revised Uniform Fiduciary Access to Digital Assets Act, which gives fiduciaries limited access if you have granted permission in your estate plan.
Refresh Your Plan With Professional Guidance
Just like a home, an estate plan benefits from periodic maintenance. Spring is a natural time to tackle these updates and ensure everything is in good working order.
If your documents are outdated, difficult to locate or missing altogether, Woodinville Law can help you get organized. Schedule your complimentary consultation to review your estate plan and ensure your loved ones will have the clarity and access they need when it matters most.