Having a digital executor to manager all your online accounts when you pass can make life simpler for your family. Let’s find out how.
Mary, a mother of four and grandmother of nine, passed away. She thought she had all her estate planning in order. She had created her health care and power of attorney documentation, so her family was able to take care of her in the hospital. Her will was set up so her children would know what to do with her home, bank accounts. She even had directions for the cherished family clock. She even had directions for her pet, Snowball the cat.
The problem came later when Mary’s Facebook profile announced her birthday. No one had thought to address her online social media account. Her children were split – do we close it down as it’s too painful to see each year? Or do we leave it open as a memorial to our Mom?
With our aging, but technologically savvy population, these questions will begin to crop up for baby boomers and others who pass away. To avoid issues similar to what Mary’s family faced, it’s important to consider what happens to your digital assets once you’re gone and establish a Digital Executor to act according to your wishes.
Start by Taking Inventory
Before naming a Digital Executor, estate planning experts suggest creating an inventory of your digital files and online accounts, along with the corresponding usernames, passwords, and answers to any security questions that may be required for two-factor authentication.
The easiest way to begin is with a list of your devices (i.e., cell phones, tablets, laptops, desktop computers. You will want to make sure that you both identify the device and write down their individual login credentials. Be sure to record passwords for any apps within those devices that may require additional authentication as well.
From there, you will move on to inventory the other electronic records you currently use, own or control.
Here are a few categories to consider:
- Email accounts (Gmail, Yahoo, work email).
- Social media (Facebook, Twitter, LinkedIn, Instagram).
- Storage and file sharing (Google Drive, Dropbox).
- Payment programs (PayPal, Venmo).
- Shopping services (Amazon, Target, eBay).
- Websites and online businesses (domain name registrars, hosting services).
- Video services (Netflix, Disney+, Hulu).
- Music services (Pandora, Spotify).
- Books (Kindle, Audible).
- Virtual currency (bitcoin, etc).
Some Things May Be Easier to Pass Down than Others
While it’s important to make note of your entire digital asset library, some assets that can’t be passed down. For example, in many cases when you buy a book or song online, you’re buying a license that is only valid during your lifetime. However, if those books or songs were purchased using a family account, they can be shared with your heirs both now and after you’re gone.
A similar thing happens with airline miles.
In the terms and conditions of many frequent flyer programs, it is stated that rewards aren’t your property. And while this may be the case, many airlines will allow for the transfer of frequent flyer miles to the appropriate heirs provided documentation.
When it comes to the large, internet-based companies like Amazon and Google, some allow you to designate someone to handle your account when you die, while others simply close or deactivate accounts when they learn of a death.
If you’re curious about which company does what, a quick Google search of the company name along with the phrase “what happens to my account when I die” can certainly point you in the right direction.
Once you decide what you want to happen with each type of account or digital asset, write down your wishes. You can leave these instructions and the relevant login credentials in a letter, stored with your other estate planning documents, that can be given to the person you want to carry out those wishes.
Appointing a Digital Executor
Consider the right person for this job. This may or may not be the same person who is responsible for settling your estate. Someone who is good at paperwork and deadlines may not have the patience or skillset to close down your Instagram and Amazon accounts or make copies of all those pictures on your phone.
North and South Carolina, among other states, have enacted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). The RUFADAA helps address access to online accounts when a person dies or loses the ability to manage their accounts. These rules apply to digital property such as computer files, web domains and virtual currency. However, it restricts access to communications such as email, texts and social media accounts.
So how do you deal with all those social media accounts? Facebook allows you to delete an account after death, or memorialize the account by appointing a Legacy Contact. This person is responsible for maintaining the page.
Twitter can delete an account, but if you don’t have all the person’s information, their team will work with the person authorized to act on behalf of the estate, or a family member.
Google has a service that allows you to decide ahead of time who can access what information on your account.
Take time to make a list of all your online accounts and to communicate that information to your family. Using a password manager is a huge help in this area. Let them know what you want them to do.
In Mary’s case, her family has decided to leave her Facebook profile open and her oldest grandson is managing the account. Her family and friends often post memories and scan in old photos to share with the family so they continue to remember her in the most positive way.
Pathfinder Planning LLC is a registered investment advisor in North and South Carolina. For more information, visit www.pathfinderplanningllc.com.