Is It Time for a Digital Will?
Many people love the digital world and think of it as a huge benefit. Others, not so much, considering it more as a time waster at best, or a scary place at worst.
Whatever your view, there's no denying the complex issues that come with transferring and providing access to your digital assets at death. What lives online is neither easy to access nor is it very clear as to who can get to it.
This is an important focus for all of us, including our families and businesses, since increasingly so much is kept and transacted online. This is something we tend to overlook, but given the incredible amount of information and assets we have in the cloud (think social media accounts, photos, financial accounts, vendor apps, subscriptions, etc.), having an understanding of digital estate planning can help you plan for the future.
Put simply, your estate plan isn't complete unless you have adequately accounted for your digital assets. In other words, if there is no specific direction given regarding those to whom you wish to provide access to files, accounts, email and even social media, your wishes about those assets may not be able to be carried out.
And yes, you heard me right, I called them assets, because that's what they are - assets holding value and importance, just as physical assets do.
As a result, a digital estate plan is absolutely necessary to avoid questions or confusion about what to do with your digital presence when you are gone. Just like a physical will, a digital will component is a great gift to your loved ones that will make it so much easier for them to navigate these waters.
While this article cannot address all issues, and the services of an estate planning professional is strongly advised, at the very least you should give some serious thought to, and document, some very important information. Here are some steps to take:
Make a list of all online accounts and how to access them. This is the very foundation of any digital estate plan. List EVERY relevant online account you have, from banking and investment websites (don't forget cryptocurrency accounts) to credit card accounts, streaming services, social media, retail apps, smartphone sync sites such as music and photo-sharing sites, and even your home utilities.
Here's a tip – as you log on to each account you use, add it to the list! This will make the task seem not quite so daunting.
Be sure to include the following information on your list:
-Name of the account;
-Contents of the account;
-URL address;
-Username;
-Passwords (or Password Manager information).
Put your instructions in writing. Once you have made your list, decide what you want to happen to each one when you're gone. Some you may want saved, while others you may have a reason to close. Then be sure to put your wishes in writing. It's a good idea to work with an attorney to make sure your instructions are properly included in your estate documents.
You will need to take into account the end-of-life policies that many of the sites have. For example, the popular site, Facebook, allows you to appoint what they call a "legacy contact" to care for your account after your passing, and then they will "memorialize" the account, removing certain private information and making it available only to friends. Of course, it can be deleted entirely as well.
And by all means, don't forget your email accounts. They should be monitored for at least some period of time for important information that may come to them, but likely you will want them closed in time, and in fact, some will close automatically if not used in a certain period of time.
Name a digital executor. Designate a trusted person to carry out the digital plan. You can name this person in your will and make sure they know how to access the digital estate. Give the digital executor power of attorney over digital accounts in order to access them.
Store your information in a safe place. With digital estate planning gaining more traction, services are starting to pop up that will allow you to store all of your pertinent information in one place. This enables you to better protect your most sensitive information.
Our firm, EGP, offers just such a service, although not limited only to digital assets. Your information, including copies of relevant documents such as insurance policies, account statements, assets lists, etc., can be securely stored. Then all you have to do is tell your heirs who to go see in the event of your death or even an event of disability that leaves you unable to take care of things yourself.
Of course, there will be changes in the information over time. It will be just as important to keep your information current as it is to put it together in the first place. Perhaps set a reminder once a month or quarter to update your lists as needed and then store as you have arranged.
While these steps may seem like a lot of hoops to jump through, the best way to preserve your legacy and have your wishes carried out is to be sure all the little details are completely documented.
With digital assets becoming more important and valuable, care should be taken to ensure that those you leave behind can execute your wishes and properly care for and preserve your priceless legacy.
Lane Keeter, CPA is Office Managing Partner of the Heber Springs Office of EGP, PLLC, CPAs & Consultants (www.egpcpas.com), a full-service financial firm with offices around Arkansas, and winner of The Sun-Times Reader's Choice Award for Best Accountant
