Nowadays most people have files and information stored on computers and smart phones such as online accounts with banks, email providers, social networks and music accounts.
These types of accounts and the identity of the service provider are often changing and as a result, planning for the location and security of online assets should now be a part of everyone’s estate planning.
Today, many people pay bills online, receive paperless account statements, keep their checkbooks online, and file their income tax returns online. It’s even possible that these important records are kept only in a digital format with no paper trail of the assets or bills.
Further complicating this subject is that since the digital world is fairly new, policies concerning access to these accounts upon the death or incapacity of someone are inconsistent and in flux. Often you must act quickly to protect online accounts from being deleted or frozen if the account has not been recently accessed. Yet, it is not uncommon for service providers to refuse to give to others the passwords for incompetent or deceased individuals.
Therefore, the first challenge is identifying the digital assets and then getting the username and passwords for the accounts. If there is no record, it could take a long time and a lot of effort to identify the accounts and gain access to them.
As such, individuals should prepare a list of all online accounts and other digital assets. This can be done with a written list. However, keep in mind that the list must be updated each time a password is changed or an account is added. Electronic lists, either on a computer or online, of usernames, passwords and accounts might prove to be more convenient to update.
The list should be kept secure. If you choose to maintain a written list, it should be kept in a safe deposit box, home safe, or with your attorney. Online lists can be secured by a master password. Keep the master password and instructions for accessing the electronic list in a safe deposit box, home safe, or with your attorney.
To begin to plan for your digital assets, consider what would happen if your computer were lost or stolen. What important information would be lost? Could your loved one obtain access to online accounts if you were to die or become incapacitated? What digital assets would you want your family to be able to access? Who would you want to have such access? In addition to personal electronic data, many also have business electronic files. It is important for your employer to be able to obtain access to your business files if necessary.
Planning ahead is always best to ensure that no account or asset is overlooked.
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