Chances are good that you have never considered the need for a digital real estate plan. But you have experienced the difficulty of forgetting the password of a rarely used website, as well as the answers to security questions, and the password of an unused email account associated with the site.
The cyclical frustration of not being able to log into your account is one of the hallmarks of the digital age. But we often don’t think about the downsides: How will your loved ones access your online accounts and assets if they don’t have your credentials and you’re not there to answer the security question about the first concert you went to? (It was Milli Vanilli, and you’ll carry that secret to your grave.)
We live online these days, which means an estate plan needs to cover more than just tangible assets. Here’s how you can create a digital estate plan that will ensure your loved ones can access your online assets.
What are your digital assets?
It’s helpful to start with a list of any assets, records, or files you own that are stored online, in the cloud, on a mobile device, or on your personal computer. This may include any or all of the following types of goods:
- Email accounts: Be sure to write them all down, including the Yahoo email address you only use to sign up for discounts.
- Social media accounts: While you may care more about your LinkedIn account than the Instagram profile you rarely use, it will help that your loved ones know about all of them.
- Online bank accounts: Anyone know that you only have an online savings account when your statements are emailed to you?
- Benefits of the loyalty program: This may include miles and credit card points, and may or may not be transferable, depending on the loyalty program.
- Cryptocurrency wallet: If your family does not have the key to your crypto wallet, any cryptocurrency or NFTs you have will be lost forever.
- Domain names, blogs, or websites you maintain: Your family may wish to sell these assets.
- Photos, videos, or other data stored in the cloud: Without access to the cloud, your family may lose these important files.
List your digital bills as well
While your digital assets may be part of what you want to leave to your family, you’ll also need to account for any digital debts you may have. This may include:
- Credit card and payment accounts: This may include accessing your Apple Pay or PayPal account.
- Dating or gaming accounts: While you may not want anyone to know who you’ve connected with or what games you’ve played, your heirs will need to know what accounts you have so they can cancel payments to them.
- Online subscription: Canceling your Stitch Fix or Hulu subscription will be much easier if your family knows about the accounts.
- Marketing sites: This includes things like Amazon and eBay.
- Accounts for online services: Trying to figure out who provides your internet service, cell service, and electricity can be a headache for your loved ones.
Know the barriers to access
Having a complete list of your digital assets and liabilities is a great start, but just knowing what you have won’t be enough to give your family access to your accounts. There are two main obstacles your heirs will encounter when trying to access your digital accounts:
Password protection
Passwords prevent fraudsters from damaging your accounts and can keep your family from accessing your digital life after you die. Password protection can keep your heirs from having access to everything from your laptop and cell phone to your crypto wallet.
Setting up a password manager can help provide access to your family—in some cases. With a password manager, your heirs will only need one password to access your accounts, and the manager stays informed of your passwords even if you change them.
Just remember that having your login credentials may not be enough for your family to access all of your accounts, as some may require you to use service tools to gain access after your death. You will need to go through the necessary process for every account you want to pass on to your heirs.
Criminal and data privacy laws
Unfortunately, not all sites allow heirs to access your account on your behalf just because they have a password. Both criminal laws and data privacy laws can restrict access to your digital assets unless you give express permission for your heirs to gain access to your accounts after your death.
The law is trying to reach a new state of digital goods. The Revised Fiduciary Fiduciary Access to Digital Assets Act (RUFADAA) provides estate managers and fiduciary agents with a way to legally manage accounts even if digital assets are not included in the estate plan. However, this law has not been passed in all states.
How to provide posthumous access
To ensure that your heirs have access to your digital life, you will need to give permission directly in your will or power of attorney. However, giving permission to your regular housing scheme does not guarantee access because they will be relying on RUFADAA. The law will give your executor only a narrow level of access—and they will likely have to provide a number of documents to each company to get that access.
This is why you should write a document describing your digital assets separate from your estate (as anything included in your will becomes a public document).
The letter does not need to be notarized or notarized. It simply requires giving specific instructions to your executor about what assets you have, how you want them handled, and how to access them. This is where you will enter any password information and provisioning procedures required by certain service providers.
Put the letter in a safe place, along with your will and power of attorney, so it doesn’t fall into the wrong hands but your executor can easily find it.
Legacy in the digital age
Estate planning is already a complex process—and adding digital assets and liabilities increases the complexity.
To make closing your digital space easier on your family, start with an inventory of your online assets and debts. That will help you determine what your loved ones will need to access your accounts, whether it’s login credentials or a specific process required by an online service.
You will also need to give express permission for your executor to access your accounts in your will and give them a letter explaining how to get access.
Digital estate planning can take time and effort, but providing clear direction for your online assets is far better than making your loved ones try to remember whether your first pet’s name was Mokey, Mokie, or Moky.
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