Michigan Estate Planning and Business Attorney Giving You the Representation You Need for Digital Estate Planning

Estate planning is one of the most important things a person can do to secure their lived ones’ future. By leaving behind detailed plans of what someone intends to happen to their money, property, and other assets, they provide a clear roadmap for their family and friends. This helps reduce or eliminate the possibility of a part or the whole of their estate entering probate.

When planning their estates, most people take material wealth into consideration. For centuries, this was all that mattered. However, in the internet age, there is a new type of asset which many people do not think about when estate planning. These are digital assets. Digital assets make up a potentially vital part of modern estates and need to be taken into consideration when planning for the future.

What is Estate Planning in Michigan?

Estate planning is the process of determining what will happen to all of a person’s assets after they are gone. Most people know about wills, and that they serve as a legal device to leave money and property behind. However, a will is relatively simple, and may not be able to take into account all of a person’s assets. This is particularly true if someone is living a comfortable life, is a property or business owner, has investments, or has complex financial concerns. Estate planning is a more complex process that takes into account everything a person could possibly leave behind. An estate plan will include:

  • Money
  • Property
  • Vehicles
  • Real Estate
  • Business Interests (Stocks, Copyrights, Patents, etc.)
  • Digital Assets
  • An Executor
  • Beneficiaries
  • Trusts

In drafting an estate plan, a person will name an executor who will be responsible for overseeing the distribution of their assets. By naming an executor and also specific beneficiaries, a person can avoid some or all of their property going into probate. This is a legal process in which the state determines who is legally entitled to inherit a person’s property. Probate can be long and complicated. This is because anyone with a legitimate legal claim to assets can come forward and attempt to gain possession of them. Naming beneficiaries and executors can help avoid this.

Estate planning can and often should also include a trust. A trust is a legal arrangement in which assets are transferred to another person before someone’s death. That person then manages those assets until the person dies. This ensures a trusted individual has possession of valuable assets while the original owner is still alive and can ensure they will be distributed accordingly.

In the past, estate planning was largely concerned with material property such as real estate, cars, and money. In more recent years, digital assets have become a greater concern. Neglecting to include digital assets in an estate plan could potentially deprive someone’s heirs of valuable commodities and/or intellectual property.

What Are Digital Assets in Michigan?

Digital assets are electronically stored representations of value and goods that can be bought, sold, traded, or otherwise acquired. They are similar to stocks in that they are not a physical asset that can be held and seen but which represent something of great value. Digital assets can include but are not limited to:

  • Cryptocurrency
  • NFTs
  • Blockchains
  • Social Media Accounts
  • Email Addresses
  • Domain Names

Digital assets are relatively new in the realm of estate planning and wills. Because of this, many people do not take their value into account. Someone with a large social media following may want their online profile managed by a close friend or family member after they’re gone. That following could also potentially translate into opportunities for revenue in the future. The same is true if you run a successful website or have a blog that generates money via a crowdfunding source like Patreon. You could still have unaccounted for digital income that your heirs aren’t even aware exists.

A person who was dealing in NFTs, cryptocurrency, and/or blockchain could also have potentially left behind large sums of money their heirs do not know about. A single unit of cryptocurrency can be worth tens of thousands of dollars. Again, if someone did not list this in their assets, there may be no way for their heirs to know it even exists.

Email addresses are another digital asset many people may not think about. Emails could have important sentimental content such as old letters and correspondences. They could also contain valuable business information or contain data such as passwords and login information for bank accounts and websites.

These are only a few of the potential digital assets a person could leave behind. In the modern world, it is almost impossible not to have digital assets. Because they are so common and such a part of every day life, many people take these assets for granted. However, they could become vital to our friends’ and loved ones’ futures. This is why it’s important to take them into consideration when estate planning.

What Should With my Digital Assets If I Am Estate Planning in Michigan?

In an increasingly digital age, it’s almost impossible not to leave behind digital assets. However, because they are such a part of daily life, many people do not think to include them in estate planning. This could potentially deny your heirs access to valuable information, money, intellectual property, and more. This is why if you are estate planning it’s important to consult an attorney experienced in digital assets.

If you or a loved one are currently planning an estate or considering estate planning, don’t hesitate to contact Kendal Law Group P.C., located at 4190 Telegraph Rd., #3000, Bloomfield Hills MI 48302. Aaron Kendal has years of experience in business law and estate planning. He knows precisely what digital assets to think about and look for when drafting a will and building an estate plan. He’ll consider emails, cryptocurrency, social media accounts, and more. This way, your heirs will inherit and have access to everything to which they’re entitled.

The digital world can be complex. This can make drafting an estate plan even more complex itself. With Kendal Law Group P.C., it doesn’t have to be. If you or a loved one are considering estate planning, you need to take digital assets into account. Contact Kendal Law Group P.C. today at 248-609-1718 or email him for a free consultation. He’ll take care of a complex situation so you don’t have to worry.