As technology keeps evolving, virtual assets are becoming a bigger part of our lives. These digital assets come in all shapes and sizes—think cryptocurrencies, online banking, and cloud storage accounts, but also things like email accounts, social media profiles, and subscriptions. 

What Are Virtual Assets?

In today’s world, so much of what we do happens online, which means our virtual assets are just as important as the physical ones. Whether for managing money, keeping things organized, or staying connected, these digital assets are a big deal. As they continue to grow in volume and value, it’s even more crucial to understand what they are, how they work, and how to handle them—especially when it comes to things like estate planning.

Virtual assets include anything digital that holds value, can be traded, or is used in a specific online space. These assets don’t exist in the physical world, but they still have real-world value. From cryptocurrencies and digital art to online storage, domain names, and social media accounts like Facebook, Instagram, or TikTok, there’s a huge range of virtual assets out there—and their importance is only growing.

But here’s the kicker: since virtual assets are intangible, they can be tricky to manage, especially when it comes to passing them on after death. If you want to make sure these assets get handled properly, you need to include them in a will or trust, with all the right documentation—like access details, passwords, and the legal rules that govern them. Without a solid plan, these assets might be overlooked, lost, or even lose value over time.

Some Common Types of Virtual Assets

• Cryptocurrencies: Digital currencies like Bitcoin, Ethereum, and others that use blockchain tech to keep transactions secure and decentralized.
• Online Banking Accounts: Your savings, checking, or investment accounts that you access online.
• Cloud-Based Storage: Services like Google Drive, Dropbox, or iCloud where you store all your important files, documents, and media.
• Domain Names: Digital property in the form of web addresses, which can be valuable if they’re tied to popular keywords or brands.
• Social Media Accounts: Accounts on platforms like Facebook, Instagram, or TikTok—especially for influencers or businesses—hold serious value because they’re connected to content, engagement, and even income.

Making sure these assets are identified, protected, and planned for is key to ensuring their value is passed on to future generations.

Using The Virtual Asset Instruction Letter

One big challenge in estate planning is making sure virtual assets can be accessed and handled properly. These assets are often locked up in digital wallets, cloud accounts, or online banking platforms, and without the right documentation, it can be really hard for family members or executors to access or manage them after you’re gone.

That’s where the Virtual Asset Instruction Letter comes in. This letter acts as a roadmap for managing your virtual assets—making sure they’re accounted for and accessible if something happens to you. It includes all the details someone would need to access your assets, like account numbers, passwords, and specific instructions on how to deal with them.

Key Parts of the Virtual Asset Instruction Letter

• Asset Identification: This section lists all your virtual assets—cryptos, bank accounts, cloud storage, social media profiles, etc.—and gives all the necessary details, like wallet addresses, account numbers, or URLs.
• Access Info: Here, you include everything someone needs to get into your accounts, like usernames, passwords, private keys, or recovery phrases. Make sure this information is stored securely and shared only with trusted people.
• Management Instructions: If needed, this part tells the administrator of your estate how to manage your assets—whether they should be sold, transferred, or kept.
• Trusted Fiduciary: The letter can name someone (generally the trustee or personal representative of your estate) who’ll be in charge of making sure everything is handled according to your wishes.
• Legal Stuff: Be aware of the laws about digital assets in your area, as they can affect how assets are passed on. It’s a good idea to consult a legal pro who understands digital asset laws.

Why Is This Important?

With virtual assets becoming more and more common, it’s super important to have a clear plan for managing them. Digital currencies, online banking accounts, and decentralized assets can change in value fast, so it’s important to have clear instructions on how to manage them in the future. Plus, without proper documentation, things like cloud storage, social media accounts, and digital subscriptions could get lost or locked up, creating even more headaches for your loved ones and those persons you trust to manage your assets if you are unable to do so yourself.

By using a Virtual Asset Instruction Letter, you can make sure your digital assets are well-managed, whether they’re part of your estate plan or just something you want to keep track of. It gives you peace of mind that everything will be transferred properly, and it reduces the chances of your digital assets getting lost due to forgotten passwords or inaccessible accounts.

Conclusion

Figuring out how to handle your virtual assets is crucial in today’s financial world. Whether you’ve got cryptocurrency, cloud accounts, or online banking, having a plan for managing them is key. The Virtual Asset Instruction Letter is a great tool to make sure everything is organized and ready for someone to effectively manage if something happens to you. As virtual assets continue to grow in volume and value, making sure they’re protected and passed on according to your wishes will keep your digital legacy intact.