HOW TO MANAGE YOUR DIGITAL ACCOUNTS AFTER YOUR DEATH — PART 3
If you have preferences about the fate of your digital footprint after your death, it's crucial to take proactive steps. Without prior planning, the management of your online legacy will be dictated by the policies of the platforms you use. If you have online accounts such as Gmail, Facebook, Instagram, LinkedIn, Apple, or Amazon, your digital legacy is at stake, and it's up to you to determine whether to preserve or delete it.
After your death, some online accounts may remain active indefinitely, others may expire after a period of inactivity, and some platforms have specific processes that allow family and friends to manage accounts posthumously. Digital platforms are deeply integrated into our lives, making these digital assets a significant part of your legacy. You may want to protect these memories or have your online history deleted permanently.
To ensure your digital footprint is managed according to your wishes, follow these five steps to include digital assets in your estate plan. While many of these tasks can be done independently, consulting with a professional can help ensure your estate plan is properly prepared and executed.
1. Create a Detailed Asset Inventory with Access Instructions
Begin by listing all digital assets you own. For each asset, provide detailed information about its location and access instructions, including login information and passwords. Using a password manager, such as LastPass, can simplify this process if you have numerous accounts.
For cryptocurrency, it's essential to prepare detailed access instructions and ensure that trusted individuals are aware of your crypto holdings and how to access them. Cryptocurrency often requires complex identification data and private keys. Providing a detailed "How To" guide can help your loved ones access your digital currency with minimal hassle.
Store your inventory and access instructions in a secure location with your other estate planning documents. Ensure your fiduciary (executor or trustee) knows how to access these documents if something happens to you. Back up digital assets stored in the cloud to a physical device like a computer or flash drive to simplify management. Update your digital asset inventory regularly to account for new acquisitions or closed accounts.
2. Add Digital Assets to Your Estate Plan
Incorporate your digital assets into your estate plan. You can pass digital property to loved ones through a will or a revocable living trust. Specify in your will or trust who should inherit each asset and include detailed instructions for managing each asset after your death. For assets you don't want your family to access, specify that those accounts be closed or deleted.
Never include account information, logins, or passwords in your planning documents, especially wills, which become public records after death. For maximum security, store sensitive information in a secure place and inform your fiduciary how to find and use it. Consider using a digital management service like Directive Communication Systems for easier management.
Include terms in your estate plan allowing your fiduciary to hire an IT consultant if necessary, especially if they lack technical experience or if you have valuable digital property. Alternatively, you can designate a digital executor specifically to manage your digital assets upon your death.
3. Limit Access
Your estate plan should specify the level of access you want your fiduciary to have. For example, decide if your executor or trustee should read your emails, texts, and social media posts before deleting them or passing them on to heirs. If you want to limit or restrict access to certain assets, add the necessary terms to your estate plan to ensure your wishes are honored and your privacy protected.
4. Include Relevant Hardware
Include provisions for passing on physical devices like smartphones, computers, tablets, and flash drives where your digital assets are stored. Having these devices will make it easier for your fiduciary to manage your online assets. Since data on such hardware can be wiped clean, you can leave the devices to someone other than the person who inherits the data stored on them.
5. Check Service Providers’ Access Authorization Tools
Review the terms and conditions of your online accounts and web-based service providers to understand how they handle data after death. Some platforms offer features allowing you to give family and friends access to manage or delete your accounts posthumously. Use these tools to document who should manage these accounts. Ensure that those named in the providers’ tools match the beneficiaries in your estate plan to avoid conflicts.
Adapting Your Estate Plan to the Evolving Digital Universe
As technology evolves, keep your estate plan updated to reflect these changes. Properly include your traditional assets and digital assets in your estate plan to protect, preserve, and pass them on to your loved ones. This approach ensures that your digital property is managed according to your wishes, providing peace of mind for you and your family.
Contact a professional today to get started on securing your digital and traditional assets, ensuring they are seamlessly passed on in the event of your death or incapacity.
4oThis article is a service of Zarda Law, S.C. We do not just draft documents; we ensure you make informed decisions about life and death, for yourself and the people you love. That's why we offer Legacy Planning Session, during which you will get financially organized and make all the best choices for the people you love. You can begin by scheduling a Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.
