In a world where technology is a significant part of life, estate planning no longer entails simply leaving a key to a safety deposit box.
Along with tangible belongings, most people have also accumulated many “digital assets”—from social media accounts and virtual collections of books and music, to financial assets that are managed online.
This raises important estate planning questions: when you pass away or if you become incapacitated, what will happen to your virtual possessions and your online presence?
Why worry about digital assets?
While not all your digital assets may have financial value, they may hold sentimental value. Including digital assets as part of your estate plan will provide you with a greater degree of control over what happens to them upon your passing. By securing these assets, you can avoid issues such as identity theft and account manipulation, while maintaining privacy and addressing any urgent matters.
But there is also your online personal life to consider. Memorializing a Facebook account is a way for friends and family to share memories of the deceased person. Memorializing an account also helps keep it secure by preventing anyone from logging into it.
Start thinking about what you have
Any comprehensive estate plan should include instructions that relate to digital assets. When gathering a list of your digital assets, think of the following examples (you may have other assets as well):
- Digital devices: computers, tablets, smartphones, e-readers, smartwatches
- Email and webmail accounts: Outlook, Yahoo, Gmail, Hotmail
- Online banking: bank accounts, investment accounts, lines of credit, PayPal, cryptocurrency like Bitcoin, online gaming accounts
- Social networking accounts: Facebook, Twitter, LinkedIn, Yahoo, Google, Instagram, Pinterest
- Online media accounts: Google Docs, spreadsheets, presentations, Evernote, Dropbox, Flickr
- Videos (e.g., posted on YouTube) and photos
- Miscellaneous: business assets (eBay), domain names, reward points (e.g., Air Miles), credit cards, relationships with stores
Make a list for your lawyer
You should compile a list of all digital assets that you would typically provide to your lawyer as he or she prepares important documents like your Will and Power of Attorney (or in Quebec, your mandate).
Your digital assets list should include the following:
- Personal computing devices
- Details for both financial and non-financial accounts, including:
- Account names and numbers
- Usernames
- Personal identification numbers (PINs)
Once your lists are complete, consider backing them up to separate flash drives or external hard drives. Do not include specific passwords in your Will, as this is a public document. Passwords and answers to security questions should not be shared but kept separately in a secure location.
Choosing a digital executor
Depending on the complexity of your digital assets, it may be useful to appoint a specific digital executor to manage those assets in addition to your main executor(s). Ensure that your executor knows the location of your password list and can access your digital assets.
Protecting and managing passwords
The number of accounts and passwords that many people accumulate over the course of a lifetime can be a challenge to manage and protect.
One possible solution is to use a password management company. If you take this route, check the business’s credentials to ensure that the service is secure. Additionally, you could create a virtual “vault” for your digital assets list. You may also consider randomly generated passwords to increase online security.
Your passwords should be secure, but don’t forget they also need to be accessible when the time comes. Whichever way you store your passwords—whether with a password management service, on your computer or in hard copy—it is crucial to update these records when your passwords change. Above all, make sure that your estate executor has access to the master password. You could also consider placing a hard copy in a safety deposit box or other secure location.
Summary
By taking steps now to manage your digital afterlife, you can be assured that your possessions, financial affairs, and online presence will be handled according to your wishes. For more information on estate planning for your digital assets, contact your Estate and Trust Consultant.
Helpful links
Facebook: How do I report a deceased person or an account that needs to be memorialized?
Twitter: Contacting Twitter about a deceased user
LinkedIn: Deceased LinkedIn member: Removing profile
Instagram: Report a deceased person’s account on Instagram
Google: Plan your digital afterlife with Inactive Account Manager
source https://richarddri.ca/designating-digital-assets-upon-your-death/
Dri Financial Group 