Estate planning is an activity that is often associated with older adults or those with significant assets, but young adults also need to create estate plans for a variety of pressing reasons. For example, most young people in the U.S. have extensive online footprints, including social media accounts, digital banking and personal data stored in the cloud. Without a plan in place, these digital assets can become inaccessible or even vulnerable to fraud if something happens to the account owner.
If you are a young adult, you should take note of the fact that having a digital estate plan in place can help to ensure that your online accounts, digital assets and electronic records are properly managed or transferred in the event of your untimely incapacity or death. Just as a traditional estate plan can outline what happens to physical and financial assets, a digital estate plan will allow you to designate trusted individuals to handle your online presence and digital property – and keep your digital legacy out of the hands of those whom you don’t want touching it.
Making this effort
Many young adults assume that estate planning is unnecessary because they do not own a home or have a large investment portfolio. However, the average young adult has multiple online accounts that hold personal, financial and/or sentimental value. These assets may include:
- Social media profiles, such as Instagram, Facebook and X
- Email accounts containing important personal and financial information
- Digital payment and banking apps like Venmo, PayPal or wallets
- Streaming services and subscription accounts
- Cloud storage with photos, videos and personal documents
If you were to become incapacitated or pass away, your family may struggle to access or close these accounts without legal authorization. Some platforms have policies for handling deceased users’ accounts, but others require court orders, creating additional stress for loved ones. Putting a plan in place can help to minimize the risk of such stress and better ensure that your assets are managed in the ways that you want them to be.
