In the digital age, each birthday reminder on Facebook for a friend who has passed away serves as a poignant nudge about the digital footprints we leave behind. Surprisingly, many overlook these online echoes in their estate plans, leaving a messy trail for loved ones to follow. The importance of incorporating digital assets into your estate planning is more crucial than ever, as outlined in a recent article in Monterey Herald, “Liza Horvath, Senior Advocate: Your digital life does not die with you,” .
To begin, it’s essential to prepare a comprehensive list of all digital platforms you use— from social media like Facebook, Instagram, and X (formerly Twitter), to email accounts with Google and Microsoft, as well as financial portals linked to your bank and investment accounts. A simple solution is to use a password manager or even a secure paper list to keep track of these credentials. If opting for a digital spreadsheet, encryption is a must to ward off unauthorized access, and it’s crucial that your personal representative or executor knows how to retrieve these details.
Many platforms, including Google and Facebook, offer settings to designate someone as your Account Manager or Legacy Contact who can manage or close your accounts posthumously. This foresight prevents your digital life from becoming dormant or, worse, a target for identity theft that could haunt your family’s finances for years.
Digital estate planning should also adapt to changes in online service guidelines. Your Will and Power of Attorney should explicitly grant trusted individuals access to manage your digital realm. If you have digital currency or cryptocurrency, you’ll need a Personal Representative who understands how crypto works. They should be able to access your digital wallet and “key”, so they may access your assets. These funds are frequently lost due to a lack of planning and no paper trail to follow.
Each state has different laws about digital asset management in incapacity scenarios, so it’s crucial to confirm that your estate documents are current and comprehensive.
Think of your digital estate plan as a roadmap for your personal representative—without it, navigating your online life can become a complex and burdensome ordeal. By taking the time now to streamline and secure your digital presence, you safeguard not just your assets, but also your entire online life which is vulnerable to digital identity theft that could easily continue for decades.
Reference: Monterey Herald (March 1, 2024) “Liza Horvath, Senior Advocate: Your digital life does not die with you”
