Death isn’t something that we want to think about often. But, sometimes it’s something that is important for us to consider. You probably came across this post through some form of social media whether that be Facebook, Instagram, LinkedIn, or Twitter. Have you ever thought about what would happen to these accounts when you pass away? Who would have control over them? Who would be able to login to your phone or computer to retrieve usernames and passwords?
This is where digital asset planning comes into play. I’m not going to pretend to be an expert on this by any means as that should be left up to those in the legal profession, but I can share some things to think about as well as some of the information that I’ve gathered through continuing education webinars over the past couple of months.
What Are Digital Assets?
- Online accounts (financial, social media, shopping, etc.)
- Usernames and passwords
- Access to devices which require passwords (computer, phone, etc.)
- Websites that you own (especially for small business owners)
Why should we care about who has control of our digital assets once we pass?
Ensuring that your digital assets are properly cared for can save your loved ones a lot of trouble. Closing inactive accounts of someone who has passed can help protect that person from identity theft. Really, you’re protecting yourself. If one of your family member’s identity was stolen upon their passing and you were the executor to their estate guess who gets to deal with any accounts that are opened in their name and any unauthorized charges made to those accounts. You.
Think of all of your old accounts that you ignore because you simply don’t want to take the time to delete them. Maybe you never use PayPal but you have $0.15 sitting in it for some reason. Your heirs could inherit a giant headache if someone were able to hack into that account upon your passing and it still had updated payment information on file.
Methods of Assigning a “Digital Executor”
A lot of people think that estate planning documents (wills, living wills/medical directives, powers of attorney, health care powers of attorney, trusts, etc.) are only for the rich or elderly, but they’re not. Properly executed estate planning documents can be beneficial to everyone. With social media, online accounts, and electronic devices which require passwords to be unlocked prevalent in today’s world, it’s important to make sure that you have a plan for what would happen to your digital assets if something were to happen to you.
Some websites such as Facebook and Google allow you to set someone to become the administrator of your account if you were to pass. If you’ve had your estate planning documents executed within the past year or two, then a good estate planning attorney will have had you name someone as your “digital executor” in your last will. If your will doesn’t designate a digital executor, then it may be something that you want to consider to protect your family.
It’s important to keep in mind that any legacy administrators that you’ve designated on Facebook, Google, or any other accounts must match those who are listed in your estate planning documents.
Take Inventory & Share Your Information With Someone You Trust
Take an inventory of your digital assets which should include all of your online accounts as well as your usernames and passwords to those accounts. A password protected Excel sheet could do the trick or a password manager like LastPass could help you. There are also services that can help you keep track of all of your digital assets.
The trick is that someone else has to know the login information to your Excel workbook or LastPass account as well so that they can manage, and close, your digital assets to help protect from identity theft.
Protect Your Loved Ones
Properly planning for what will happen to your digital assets upon your passing can save your heirs a lot of pain and heartache. It’s something that we should all consider as digital assets become more prevalent in our lives.
