Steps to Effective Digital Estate Planning (Especially your website!)

We need to account for our ever-expanding DIGITAL footprint. This is anything stored or accessed electronically, and ‘in the cloud’. These digital assets can be emotional, not just financial. They are PERSONAL accounts, as well as BUSINESS accounts.

Some examples of digital assets:

• Email addresses – personal and business accounts.
• Social Media Profiles – personal and business accounts – Some profiles allow for creating legacy measures.
• Annual (or monthly) Subscription Services* (Calm, Netflix, Kindle, etc) *Some services will only allow rights to listen, read, watch, not own.
• Personal Payment Accounts (PayPal, Venmo, shopping accounts).
• Business Profiles.
• Business Domains/Websites/Blogs, Payment Gateway Platforms, Messaging accounts, SAAS software used to run a business, Vimeo/YouTube, etc.
• Photos and Videos in Google Drive or other cloud-based storage locations.
• Music and eBooks.
• Cryptocurrency.
• And of course, all of the traditional formats, such as bank, credit card, investment, and retirement accounts, even medical records (i.e. MyChart).

None of us know when it will be ‘our time’, and if you’re like me, you think you have time. But none of us knows what may happen tomorrow. Sorry to be a Debbie Downer. No one likes to have to think about this stuff. It’s not fun, just necessary.

 

“I’ll be gone, so why do it”

Failure to take account of digital assets may have serious financial consequences on the ones you leave behind, like getting stuck paying for renewals over and over, for example. You’ll do it if you care about the loved ones who will have to deal with it. In addition, there may be sentimental assets (photos and videos) that need to be passed on. Putting together a plan for the transfer process of these assets mitigates losing valuable data, cherished memories and can easily affect financial resources.

 

Steps to Create a Digital Estate Plan

1. Create an Inventory of Digital Assets. This includes usernames, passwords, security pins, security questions, and other information required to access these accounts. I suggest going through a year’s worth of bank statements to get a full idea of where all your digital assets are, since most are probably paid items. I’ve created a downloadable MS Excel document to get you started - it is geared towards a business, but you can easily add additional lines. See the button at the bottom of this post. Download it to your computer, then save it into a location you’ll remember.
2. Appoint a Digital Executor: Choose a trusted individual who will be responsible for managing your digital assets upon your death. This person should be technologically savvy and understand your wishes regarding your digital legacy. You may be able to add this appointed person to your Will, Trust, or to an added Codicil to either of those (differs by state). Do not include the actual 'Digital Inventory' to any Will/Trust, etc., as Wills/Trusts are sometimes made public (recorded with a local county registrar, for example).
3. Legal Documentation: Include your digital assets in your estate planning documents. Specify how you want each asset handled, whether deletion, preservation or transfer to a specific individual.  Do not include the account passwords, as these documents are sometimes made public. Ask about RUFADAA in your state (Revised Uniform Fiduciary Access to Digital Assets Act). Here is a list by state of the law dealing with digital assets to help you get started.
4. Understand Terms of Service: Each digital platform has its own terms of service regarding account deactivation or transfer after the user’s death. Familiarize yourself with these policies to ensure your wishes align with them. Many allow for creating legacy measures (for example, Facebook, and Apple products).
5. Store Information Securely: Your digital asset inventory contains sensitive information. Use a secure system like a digital password keeper, a safe deposit box, your attorney, or locked filing cabinet to store this information. Be sure to inform a family member (or someone), and a backup person about the plan so they are aware of your wishes for your digital assets.

 

Specifically Regarding Your Website

What do you want to happen with your website in the event you pass away? You may have someone to take over, or you may want it shut down. Do you want something posted informing your client base of what’s happened? If so, who will write it? (you can write it yourself ahead of time (after all, no one knows you quite like you do), or appoint someone to do so).

Most accounts require a verification code to log in – usually this is known as 2FA, or TFA – Two-Factor-Authentication. 2FA can look like a lot of things. It can mean getting a text, getting an email, getting a verification code, using a special app on a cell phone. This can be a significant problem when it comes to accessing your online accounts. Two-factor authentication has been a breakthrough in online security, but when it comes to giving people access to your accounts, it can make things difficult. I added a column on the downloadable Asset Inventory Worksheet to state which type of 2FA is required for each asset. The trick is for the person who takes over, to have access to your email and phone. Many accounts also allow for adding a delegated administrator (or additional user); you could add this person now to make it easier. Review the form I started to get the process started, 'Website Instructions Worksheet', below.