Published on Advisor.ca
By Alyssa Mitha, August 29th, 2024
Managing digital assets in estate planning
From family photos to Netflix accounts and cryptocurrency, your digital assets require special planning — or they could be lost
Many online activities create digital assets that have become an essential part of our lives. Yet, when creating an estate plan, clients tend to overlook these often valuable assets, which can pose a challenge for an executor when administering the estate. Many clients don’t realize just how many digital assets they have until they start accounting for them.
A client’s digital assets may exist in many forms and in many locations online, so they can be difficult to locate. Even if family members are aware of the assets, gaining access and obtaining them can be difficult.
Most digital assets require a password to access information or log in to the account. Without the proper credentials, getting access to the digital asset can be impossible. A digital asset that cannot be accessed — for example, a large cryptocurrency account — essentially no longer exists. So, recording and storing all login and password information securely is of utmost importance.
Alyssa Mitha, Director, Tax and Estate Planning, Mackenzie Investments
