Digital legacies
Who gets the keys to your digital estate?
If you do almost anything online, you probably have digital assets — electronic records that you own, control or license. Failing to make arrangements for those assets while you’re alive could cause unnecessary costs, stress and heartache to those you leave behind.
Here’s what you should consider to make it easier in the long run.
1 The online life doesn’t leave a paper trail
Google and Facebook are among the few online providers that allow you to appoint someone to manage your accounts if you become incapacitated or die. Apple recently announced plans to add a similar feature. The vast majority of online providers don’t have this option, however.
Typically, executors can’t demand access to your digital assets unless you specifically give them authority to do so in your will or living trust. Even then, a provider’s terms of service may limit what the executor can do. So giving your executor your login credentials may be the easiest way to make sure they can carry out your wishes, estate planning experts say.
2 Make a digital assets inventory
The first step in creating a plan for your digital assets is to make a list of them. Searching for a “digital assets inventory” will turn up some worksheets, including a detailed one created by the trade organization Society of Trust and Estate Practitioners, or STEP, that allows you to list your accounts, usernames and, if desired, your passwords.
Don’t forget to include access to your devices. If you have two-factor authentication set up on accounts to verify your identity, your executor will need the passcode. Another option is to keep your login credentials in a password manager such as LastPass or 1Password. You would need to provide your executor with the master password, which could be included in the letter of instruction.
3 Keep your inventory safe
You don’t want to include sensitive information such as passwords in your will, since that document becomes public after you die. Instead, store the inventory and letter of instruction with your other estate planning documents in a secure location, such as with your attorney or in a home safe, and let your executor know where to find it. You also could upload the information to an online storage site, such as Everplans or LifeSite.
This article was provided to The Associated Press by the personal finance website NerdWallet. Want to suggest a personal finance topic that Quick Fix can address? Email apmoney@ap.org.