ARDEN DALE for the Wall St. Journal writes: People draft estate plans so they can pass their money and property on to their heirs after they become incapacitated or die.
But what happens to their other assets--so called "digital assets" such as an iTunes account containing thousands of songs or a Twitter account with hundreds of followers?
Questions like these are popping up with more frequency among financial advisers and their clients when it comes time to lay the groundwork for estate plans.
Advisers say it's becoming more crucial for their clients to ensure their digital assets are incorporated into their estate plans along with the hard assets: If they fail to do so, their family or loved ones may never be able access their digital photos, games, music or videos, as well as their email, online-banking and social-media accounts.
"Good advisers are paying more and more attention to these assets," said Justin T. Miller, national wealth strategist in the San Francisco office of BNY Mellon Wealth Management, which oversees more than $188 billion.
Of course, key to making sure heirs can access the digital assets of, say, their parents or spouses are passwords and provisions spelling out the transfer of assets and account ownership. Estate attorneys also sometimes recommend using a trust to hold digital assets so heirs won't have to worry about getting access after the owner dies.
Meanwhile, the issue has caught the attention of a group of state commissioners who plan next month to unveil a proposed law that would let states grant fiduciaries the right to manage or distribute clients' digital assets. Currently, only Connecticut, Idaho, Indiana, Oklahoma and Rhode Island allow that, according to the Uniform Law Commission, the group drafting the law.
Anyone trying to manage online affairs in an estate knows the job can be daunting because of the different kinds of assets involved, said Katie Robinson, the group's deputy legislative director. A virtual sword, used in a online game and which cost its owner $17,000, is her favorite example. Also, the rules on access and transferring ownership vary from asset to asset, she said.
Mr. Miller of BNY Mellon noted that when advisers ask clients about their online dealings, they often react with surprise. Even the technology executives he counsels have given little thought to how to provide their heirs access. He now tries to bring up the subject with all his clients.
So does Katherine Dean, managing director of wealth planning for Wells Fargo Private Bank, which manages $170 billion. One couple worth around $20 million seemed abashed, she said, when she gave them a one-page checklist listing digital assets as data they needed to provide to help make a comprehensive financial plan.
"They said 'Oh my gosh, we've got to go online to get this,'" said Ms. Dean. "Whenever we hear that, we take the time to have the conversation that this is very important."
A good estate plan preserves family heritage, not just access to financial accounts or assets. Photos and other materials stored online may not be worth a lot of money, but they are often priceless in terms of sentimental value, Ms. Dean said.
Trying to place a dollar amount on the worth of one's digital assets is an inexact science. However, a McAfee survey last month found that U.S. consumers estimate their digital assets are worth nearly $30,000 per individual. Respondents valued digitally stored personal memories at $16,581. They put an estimate of $6,100 on personal records, $2,847 on hobbies and projects, and $1,689 on career information.
When it comes to writing a will, estate advisers caution against putting a list of assets and passwords into it because a will can become public. Instead, data should go into a separate letter, said Lesley Moss, an attorney at law firm Oram & Moss in Chevy Chase, Md.
In the past year or so, Ms. Moss has heard from more clients concerned about their online accounts. Among them are older folks who've discovered Facebook asFB -0.17% a way to keep up with the grandkids--and some clients have told her they want their pages shut down after they die.
"They are starting to think about the repercussions," she said.
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