Who gets the keys to your digital estate?
You may not own cryptocurrency or nonfungible tokens. You may not have a big Instagram following or run an online business. But 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.
Online photo and video collections could be lost forever. Heirs could also be locked out of electronic records with monetary value, such as cryptocurrency and frequent flyer miles. Email and social media accounts could be hacked. Even basic tasks, such as paying bills online or cancelling online subscriptions, may be difficult or impossible if you haven’t made arrangements.
MAKE A DIGITAL ASSETS INVENTORY
The first step in creating a plan for your digital assets is to make a list of them. 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 to unlock your phone or other device that receives the authentication code.
You may also want to leave a letter of instruction telling your executor about your wishes for various assets — what to delete, what to archive and what to transfer to heirs, for example.
Another option is to keep your login credentials in a password manager such as LastPass or 1Password . These tools typically have a “notes” field that would allow you to include details about how you’d like the account to be handled. You would need to provide your executor with the master password, which could be included in the letter of instruction.
KEEP YOUR INVENTORY SAFE — AND UPDATED
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.
Consider reviewing the inventory at least once a year and make any needed updates. You’ll rest easier knowing your loved ones won’t be locked out of your digital life.