Peace of mind
FOR YOU AND YOUR FAMILY

When You Die, Who Will Get Your Passwords?

How Do I Prepare a Digital Estate Plan? https://smartfamilytrusts.com/how-do-i-prepare-a-digital-estate-plan/ Today there is a new kind of asset class to think about when you create or review your estate plan: digital assets. These include social media, email accounts, online subscription services, personal images
Please Share!
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email
Deborah Placet had no idea how to access her husband’s cryptocurrency and other digital accounts after his unexpected death at age 52.

Deborah Placet still hasn’t been able to gain access to her husband’s Bitcoin account.

Despite having the resources to hire IT forensic experts to help access accounts (including her husband’s IRA) it’s been three years and she doesn’t know what to do.

Placet and her late husband were financial planners and should have known better.

However, they didn’t have a digital estate plan.

Our digital footprint keeps expanding. As a result, there’s no paper trail to follow when a loved one dies. In the past, an executor or estate administrator could simply have mail forwarded and figure out accounts, assets and values.

Not only don’t we have a paper trail, but digital accounts are protected by passwords, multifactor authentication processes, fingerprints, facial recognition systems and federal data privacy laws.

How Do You Get Your Digital Legacy Ready?

The starting point is to create a list of digital accounts. Instructions on how to gain access to the accounts must be very specific, because a password alone may not be enough information.

Explain what you want to happen to each account. Should ownership be transferred to someone else? Who has permission to retrieve and save the data. Do you want the account to be shut down with no data saved?

The account list should include:

  • Social media platforms
  • Traditional bank, retirement and investment accounts
  • PayPal, Venmo and similar payment accounts
  • Cryptocurrency wallets, nonfungible token (NFT) assets
  • Home and utilities accounts, like mortgage, electric, gas, cable, internet
  • Insurance, including home, auto, flood, health, life, disability, long-term care.
  • Smart phone accounts
  • Online storage accounts
  • Photo, music and video accounts
  • Subscription services
  • Loyalty/rewards programs
  • Gaming accounts

Some accounts may be accessed by using a username and password. However, others are more secure and require biometric protection.

Note: This information should all be included in a document, but the document should not be included in the Last Will, since the Last Will becomes public information through probate and is accessible to anyone who wants to see it.

Tech Platforms May Not Have You Covered

Certain platforms have created a process to allow heirs to access assets. Typically, death certificates, a Last Will or probate documents, a valid photo ID of the deceased and a letter signed by those named in the probate records outlining what is to be done with assets are required. However, not every platform has addressed this issue.

Compiling a list of digital assets is about as much fun as preparing for tax season. However, without a plan, digital assets are likely to be lost. Identity theft and fraud occurs when assets are unprotected and unused.

Just as a traditional estate plan protects heirs to avoid further stress and expense, a digital estate plan helps to protect the family and loved ones. Speak with your estate planning attorney as you are working on your estate plan to create a digital estate plan.