Digital estate planning

Digital estate planning is an aspect of estate planning, that is concerned specifically with digital estates. Digital estate planning is the consideration of the distribution and administration of assets that are of a digital nature, with regard to probate, taxation and beneficiaries.

Digital Estate
A digital estate consists of the value and worth that is held within the context of the internet. There are aspects of digital estate that are of a monetary value, trading value, sentimental value, historical value and data value, and each of these can be considered as individual components.
Digital Estate Components
The monetary values are those where a specific and realizable amount of money is held in an online account, for example PayPal or an online bank account, where the monies held can be directly transferred upon access.
The trading values are those wherein the value contained are not realizable as actual monies, but hold an inherent value of financial implication, and these can be exchanged and transferred, for example iTunes.
The sentimental values are those specifically that are of a value and meaning to family and friends, comprising of photographs, memories and relationships, and these mightbe considered as a traditional photograph album, and are held on sites such Flickr and Facebook.

The historical values are contained within the entries made over the course of the interactions through the medium of emails and blogs. These contain history, details and references that hold the sequential understandings of an individual’s historical relationship with the internet.
The data values hold a worth with regard to the industry of data mining, whereby access to data holds a value in the context of directional advertising, relevant marketing and strategic planning.
Digital Estate Plans
A digital estate plan identifies each element of digital legacy as listed above, and completes a complete inventory and classification of the websites in order to create a vehicle whereby access and transfer of all digital assets can be facilitated. Depending upon the individual country, the laws of transfer of assets, tax implicationsare issues that have to be considered and understood, but from an individual perspective, a digital estate plan is the identification of all digital assets.
The Future
As the growth of data flow and reliance upon digital services increases, the need for consideration and for the management and transfer of digital assets and digital legacy increases, and to this end an industry is growing whereby companies are offering services to assist with the transfer of digital assets, digital storage and digital legacy.

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