What will happen to your asset after you die? This is a major concern for a large number of people. To ensure that your assets remain protected and are distributed to their legal heirs, you should effectively plan to protect your assets. And while most people do the arrangements for the protection of tangible assets, they conveniently forget to secure their digital assets. Here, we will learn how you can protect all forms of assets and secure the future of your family.
How to Protect Your Digital And Tangible Assets
1. Start Early
Bad things can happen at any time. This is why it is important to act early when it comes to making provisions for protecting your family and the estate. For effective legacy planning, you should start your search for the right insurance plans that offer proper coverage.
2. Use Retirement Accounts
While getting insurance is a good way to protect your assets, you may go with setting up retirement accounts. Federal laws offer unlimited asset protection to ERISA-qualified retirement plans. They also provide protection up to $1 million in assets in an IRA in case of bankruptcy. Find out what laws in your state say about asset protection and consider using retirement accounts.
3. Take Care of Your Digital Assets
For a long time, assets protection was mainly restricted to tangible assets. With the digital revolution, there has been a rise in digital assets that also need to be protected. Here are some steps that you may follow to protect your digital assets:
- Make an Inventory; The first step that you have to take in order to save your digital assets is to make an inventory of all your digital assets. Also, jot down the list of usernames and passwords that you use to access these assets. Password management applications such as LastPass can help you keep track of all your digital assets. Keep the list in a safe location and provide instructions to relevant people and explain how to access it and get into the accounts.
- Digital Assets to Your Estate Plan; Just like your tangible assets that remain in a safe, your digital assets will remain locked and inaccessible if you don’t provide your fiduciary with detail instructions regarding what should be done with each asset. However, don’t provide your login credentials in estate documents that are read by others or else you will risk losing exposing your confidential information.
- Service Providers’ Access-authorization Tools; In the world of social media, everyone has a designated account on different social networking sites. Many service providers such as Facebook, Google, Instagram, etc., have introduced different tools that let you designate access to someone else in case of your death.
The Final Word
Technology has been evolving rapidly, resulting in innovations of new products. Digital assets were never considered in estate planning for a long time. With time, people have started planning for the protection of digital assets as well. We hope that these few tips would help you start planning for your assets.