Our lives are increasingly lived online – from social media and email to online banking and cryptocurrency. However, many people overlook what will happen to these digital assets when they pass away. Planning for your “digital afterlife” is now a crucial part of estate planning. Without clear instructions, loved ones may struggle to access or manage your online accounts, and important data or funds could be lost forever. By including digital assets in your estate plan, you can ensure a smooth transition for your heirs and protect your digital legacy.
Take Inventory of Your Online Accounts
Start by creating a comprehensive list of your digital assets. This inventory should detail all your online accounts (financial, email, social media, cloud storage, subscriptions, etc.), digital devices, and even valuable files like photos or documents. For each, note important information such as usernames, the purpose of the account, and where to find login credentials (but do not put passwords directly in an unsecured document). Instead, consider using a password manager or secure digital vault to store your login information. Keep this inventory updated and let your executor or a trusted family member know how to find it when needed. Knowing what digital assets exist is the first step to making sure none slip through the cracks during estate administration.
Provide Legal Access and Instructions
Simply handing over passwords isn’t enough – your estate plan must grant legal authority for someone to manage your digital assets. In California, for example, the RUFADAA (Revised Uniform Fiduciary Access to Digital Assets Act) allows you to authorize a fiduciary (executor, trustee, or agent under power of attorney) to access your online accounts after death or incapacity. You should explicitly include provisions in your will or trust giving this permission. Without it, tech companies might refuse access due to privacy laws or terms of service. Work with your attorney to craft a digital assets clause that specifies who should handle your online affairs and what should be done with each asset. Do you want your social media profiles memorialized or deleted? Should your family archive your emails or photos? State your wishes clearly. For instance, you might direct that your family back up all photos from your cloud accounts, download a list of contacts, and then close the accounts. By spelling out these instructions, you reduce confusion and conflict. Remember to also address any digital assets of monetary value – like cryptocurrencies or online businesses – by including them in your estate distributions. Secure methods for your fiduciary to retrieve encryption keys or passwords (perhaps sealed instructions or a dead man’s switch service) can be implemented so that these assets aren’t permanently locked away.
Utilize Built-in Legacy Tools
Many major online platforms now offer legacy planning features – take advantage of them. Facebook, for example, allows users to designate a “legacy contact,” a person who can manage your profile after you die (once Facebook is notified and your account is memorialized). This legacy contact can pin a final message, update your profile picture, and download an archive of your posts, helping preserve your social media legacy. Google has a similar feature called Inactive Account Manager, where you can decide what happens if your account goes inactive and designate trusted contacts who will be notified and given access to data you specify. Apple’s iCloud has a Legacy Contact feature as well, enabling your loved ones to access your photos and other iCloud data with a special access key. Include these planning steps as part of your estate preparations – they are like beneficiary designations for your digital life. Just as you’d name beneficiaries on a bank account, you can name individuals to take care of your Facebook or email. Keep in mind that each service’s rules may differ; some accounts might be deleted after a period of inactivity if no action is taken. Therefore, incorporating these tools provides a safety net.
Ensure a Smooth Digital Transition
By planning for your digital afterlife, you spare your heirs from technical and legal hurdles at an already difficult time. Imagine the relief of your family being able to access your online photo albums because you left them the information and authority to do so, instead of those memories being lost. Or consider the potential financial pitfalls if no one can log in to your online brokerage or cryptocurrency wallet – another reason careful planning is essential. Discuss your digital estate plan with those involved (your executors or agents) so they understand their responsibilities and the location of your instructions. Review and update your plan regularly as you add new accounts or as policies and laws evolve. In an era where a large part of our identity and assets live online, including online accounts in your estate plan is a vital step. It ensures that your digital footprint – from social media profiles to financial accounts – is handled according to your wishes, providing peace of mind for both you and your loved ones.
Your digital assets are an important part of your legacy, and planning ahead ensures that they are handled according to your wishes. By creating an inventory, granting legal access, and leveraging digital legacy tools, you can simplify the process for your loved ones.
If you need help incorporating digital assets into your estate plan, our team is here to assist. Contact the experienced attorneys at Lowthorp, Richards, McMillan, Miller & Templeman for legal advice and support. Call (805) 981-8555 or fill out our online contact form. We serve Ventura, Santa Barbara, and San Luis Obispo.