Has something similar happened to you?
You notice a larger-than-usual water bill payment from your online checking account.
You log onto your utility account to see why. You get an error message that the email you’re using is unrecognized. You swear it’s correct, and try again with a variety of possible passwords.
The account keeps sending verification codes to your email, but you don’t receive them.
You get locked out after too many sign-in attempts.
Then, you remember that you didn’t update your account with the new email address you started using six months ago. It’s still connected to your older email address, which is no longer forwarding or accessible.
You call the water company, wait on hold for 45 minutes, and need to reset all of your online account details. What should have taken three minutes takes an hour.
Now, imagine a loved one trying to access your water utility account to turn off service after you’ve died.
No bill because you have set up automatic online payments. No passwords or login information is written down. Not something a grieving loved one needs at a time of loss and stress.
Sadly, I hear stories like this from clients’ families all the time.
One of the biggest headaches survivors have is how their deceased loved one’s digital assets are handled—or, NOT handled. Let’s explore what a comprehensive digital estate plan should include to reduce stress and frustration for your survivors.
Taking Inventory of Your Virtual Valuables
In our increasingly digitally-dependent world, we leave behind not only insurance certificates and houses to our survivors, but also unique digital identities and valuable virtual assets, including:
- Financial & Utility Accounts: Online banking, investment portals, credit card logins, online wallets, payment apps, and utility billing sites.
- Communication & Cloud Data: Email accounts (Gmail, Outlook), cloud storage (Google Drive, iCloud), text messages, and digital photos and videos.
- Social Media & Content: Profiles on Facebook, Instagram, LinkedIn, X, websites, blogs, and publication subscription services.
- Cryptocurrency & Digital Currency: Crypto wallets, private keys, NFTs, and digital reward points.
- Hardware: Smartphones, tablets, laptops, external hard drives, and digital cameras.
Most technology companies provide tools to help you set up instructions for managing your accounts after your death.
The next time you’re active on any of your online accounts, take a minute to type “how to manage my account after my death” in the help search bar. The answers will give you details to set up your preferences.
Setting up your preferences may seem a simple task, but these are highly personal decisions based on your values. They reflect the level of control you want over your online legacy, how you want to be remembered, and what responsibilities you want to place on your survivors.
Do you want to continue being visible online to keep memories alive and accessible to family, friends, and colleagues?
Do you want your social pages to serve as an online memorial for loved ones to collectively grieve and post tributes?
If so, should they be visible for a specified time or accessible in perpetuity?
Do you want to restrict visibility from public to specific groups or persons?
Or, customize what information stays up and what gets deleted?
No matter what you decide, taking control now may reduce uncertainty or discomfort for your survivors.
Access Granted: The Key to Unlocking Your Digital Kingdom
Not only will survivors need your account usernames and passwords, they’ll also need instructions for advanced security features like two-factor authorization, authorized devices, and verification codes.
Documenting key account details such as auto-renewal status, which bills are on autopay (and from which bank—especially if you have multiple accounts), and instructions for what to do with each account after your death is extremely helpful to survivors.
There are many ways to collect and store a master password list. The list can be written in a dog-eared notebook, in an Excel or Google Sheet document, or stored in a digital password manager vault.
With online identity theft, phishing scams, and cybersecurity becoming a more serious issue, utilizing a password manager app is a smart security move.
Popular apps such as Keeper, 1Password, and Bitwarden generate, store, and auto-fill unique and secure login credentials and passkeys. Many apps offer free as well as paid versions and are easy to install, integrate, and manage across your accounts and devices.
No matter how you organize your password list, the most important step is to authorize a trusted person(s) to have access to it when and where they will need it. That could be your spouse, a trusted family member or friend, or the executor of your estate.
Vaulting Into the Future
Digital vaults are the ideal modern-day safe. They are stronger and more accessible than a heavy metal safe under the bed that no one remembers the combination for, or a dusty box locked away in a bank in another state whose key was lost years ago.
Besides holding all of your digital account information, you can upload copies of your legal, financial, medical, and other important print and digital documents. This one-stop solution is not only invaluable for your survivors, but also super-convenient for you to keep track of, update, and add to as your life and wishes change.
Designating a spouse, executor, or other trusted person to have access to your online vault is also easy. There are lots of safeguards built in to protect yourself. You can grant various levels of access, such as “view-only” or even “takeover” access, where your authorized users can make changes or close accounts.
Life transitions such as divorce, family disputes, or the death of a spouse can trigger the need to change authorized users. Handling this digitally can be faster, easier, and less expensive than changing written documents through an attorney.
Authorizing account access is not just for after you die, but also during your lifetime. If your health or circumstances change, knowing that a spouse, power of attorney, or other loved one can access critical information and documents can provide immeasurable comfort.
When Passwords Meet Probate
Digital assets are increasingly being addressed by state law through versions of the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). Most states have either enacted the law or are in the process of doing so.
Even if your state has passed RUFADAA, you shouldn’t rely solely on the law. You should still work with your estate planning attorney to make a detailed plan for your digital assets within your legal documents.
Your estate attorney should spell out explicit terms of fiduciary authority for your digital executor that cover ALL aspects of digital assets, including: electronic communications, online accounts, computers and devices, encrypted or password-protected information, and grant authority to communicate with digital custodians.
This two-step process is a sound approach to follow:
- Have your attorney include express digital-asset authority and consent to disclosure of electronic communication contents.
- Pair that legal authority with a secure inventory of accounts and recovery information.
The legal documents establish permission; the inventory provides access.
To ensure you don’t leave behind any digital baggage, here are a few other things to keep in mind when creating your digital estate plan:
- The legal authority of a power of attorney (POA) ends at death. That means, if your POA was managing your online accounts and communications before your death, they no longer have the legal authority to do so after your death unless you appoint them as your digital executor.
- Access to some accounts may depend on the service provider's terms, tools, and preferences you selected while alive. Streamlining your account settings with the language in your plan can help avoid confusion or conflicts.
- You may have sensitive or personal photos or content online that you don’t want certain people to see. For example, you may feel totally comfortable having your sister as your main digital executor, but don’t want her accessing your online dating profile and history. Designating another trusted person to delete, download, or restrict access to it upon your death can ensure it remains private.
Preparing for Your Final Sign-Off
Leaving someone with a phone they can't unlock and accounts they don't know exist is not a legacy anyone wants to inherit.
Hopefully you’ve gained some clarity and tips from this article to strengthen your digital estate plan. If you’d like more personalized advice and access to helpful resources, Team Treece is here to help.
Schedule a consult with us here.
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