The digital boom of the early 2000s changed the way we communicate, receive news, and shop! With many in-person retailers going out of business, many are turning to the digital sphere to shop. If you own a digital business, you may not have considered the importance of estate planning for your shop. If you’re ready to protect your online business, the following blog explores the steps you can take to help ensure your wishes are met upon your passing. Additionally, you’ll learn why it’s in your best interest to connect with Pennsylvania estate planning attorneys to guide you through this complex process.
What is digital estate planning?
Digital estate planning refers to planning what will happen to your digital assets upon your passing. While many understand the importance of ensuring physical assets, like their home and physical properties are taken care of, many forget to consider the online world.
Digital assets include, but are not limited to, the following:
- Email accounts
- Loyalty program rewards
- Cryptocurrencies or NFTs
- Illustrations or animations
As such, any online stores you own and operate will fall into this category. It’s important to understand that if you own your own website domain or sell through a marketplace like Amazon, taking the steps to protect your business is essential.
How can I protect my digital business?
When you own an online store, understanding the steps you can take to protect your assets should you pass away is critical. Generally, the most important thing to do is to create an estate plan.
As a business owner, you likely have many assets solely tied to your business. If this is the case, you should consider establishing a living trust. This document allows you to create specific terms and conditions about what should happen to the assets tied to your business and who is responsible for maintaining them. Additionally, you will name a trustee who will oversee and manage the assets in this trust.
You may also want to create a succession plan for your business. This allows you to leave instructions on how you would like your business to be passed down to the next owners. Additionally, you can leave information about how to access specific details regarding the business so that only the person who will assume ownership of the business has sensitive documents related to clients, goals, account information, and other necessary details to help the business continue.
As you can see, there are many considerations you must make if you operate an online business. That’s why it’s in your best interest to connect with an experienced attorney to discuss the details of your circumstances. At Friedman Schuman, we understand how important your business is to you. Our team will do everything possible to assist you with these complex matters to help you achieve peace of mind for the future. Contact us today to learn how we can assist you.