Today people spend a lot of time on their smart phones, computers and tablets. People live their lives in the digital world whether they are connecting to family and friends, buying or selling property, or documenting their daily activities. In June of 2017, Facebook announced they have more than 2 billion users. It has been reported that there are more than 1.6 million Facebook users in Philadelphia.
When it comes to estate planning, many people consider only what to do with their house, car, investments, and bank accounts. However, many fail to think about what they will do with their digital estate, such as social media accounts, emails, URLs, files and photos in the cloud or on their computers.
Digital property may have monetary value. For example, a unique URL may be worth thousands of dollars. Insurance.com sold for $35.6 million in 2010 and Hotels.com sold for $11 million in 2001. A personal computer or cloud account may have the original transcript of a book. Apps and music on smart phones and computers may have value.
Furthermore, some people generate revenue from their YouTube and Instagram accounts. After the account user’s death, the continued revenue could stream indefinitely. Someone trustworthy needs to be assigned to manage these accounts and ensure the income is going to the proper beneficiary.
Some digital properties may have sentimental value. There may be photos, videos or posts on social media accounts that should be kept for loved ones. Decisions must be made whether to keep the social media accounts open or to close them. Some people find it therapeutic to keep the deceased’s Facebook page open for family and friends to post their thoughts and condolences. On the other hand, keeping these accounts open risks that someone may hack into the account. It has been reported that hackers have used deceased persons’ Facebook accounts to advertise or post offensive material. Furthermore, some people may want these accounts closed to maintain their privacy.
Moreover, decisions have to be made regarding apps and online accounts, like emails, retail accounts, and subscriptions. Should the email account be closed after the estate has been closed? Will someone cancel the automatic renewal subscriptions like Amazon prime? Closing these accounts may be in the best interest of the estate since they may contain credit card and other personal information that can easily be stolen.
As part of estate planning, people should take some time to consider what is in their digital estate and plan for that property accordingly.
Always consult a tax expert like a certified public accountant before relying on any information.
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