Planning for your digital footprint after you’re gone is an important complement to traditional estate planning. This post will help you consider what is involved in the process so you can safeguard your digital footprint.
What is a Digital Estate?
A digital estate encompasses all your online accounts, digital files, and electronic devices. This includes social media profiles, email accounts, online banking, cryptocurrencies, cloud storage, and more. Without proper management, these assets can become inaccessible, causing stress and potential financial loss for your loved ones.
The Role of a Digital Executor
A digital executor manages your digital assets according to your wishes. Their responsibilities may include closing accounts, transferring digital files, and protecting your personal information. This role is particularly important given the unique legal and practical challenges of digital assets.
Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA)
The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) provides a legal framework for executors to manage digital assets and accounts after the account holder’s death. Under this act, an executor or trustee can handle an estate’s digital assets and electronic communications, though what counts as a digital asset or electronic communication might differ depending on the state.
Step-by-Step Guide to Managing Your Digital Estate
1. Inventory Your Digital Assets
Begin by listing all your digital assets. This includes social media accounts, email addresses, online subscriptions, cloud storage, and digital currencies. Be thorough and consider both personal and professional accounts.
2. Organize Your Passwords
Use a password manager to securely store and organize your login credentials. The master password can be shared with your digital executor.
3. Choose a Digital Executor
Pick someone you trust and who is tech-savvy. This person does not have to be the regular executor for your estate. Discuss your expectations with them and provide clear instructions.
4. Document Your Wishes
Clearly outline your wishes for each digital asset in your will or a separate digital estate plan document. Specify whether you want accounts deleted, memorialized, or transferred to someone else.
5. Provide Access to Your Digital Assets
Make sure that your digital executor will have access to your passwords and accounts, either through your password manager or a document kept in a safe deposit box or other secure location.
6. Review Terms of Service
Each digital platform has its own terms of service regarding posthumous account management. Familiarize yourself with these terms for your key accounts and include any necessary instructions in your digital estate plan.
Guidelines for Popular Digital Platforms
If you want to memorialize your Facebook account, designate a legacy contact who can manage your account. Navigate to Settings > Memorialization Settings to designate your legacy contact.
Instagram offers a similar feature, allowing accounts to be memorialized or deleted upon request by a verified family member. Ensure your digital executor knows your preference and has access to the necessary documentation.
TikTok
TikTok does not currently offer specific posthumous account management options. Therefore, it’s crucial to provide your digital executor with your login information and instructions on whether to delete or manage the account.
Payment Accounts
If you have payment accounts such as PayPal, Venmo, Zelle, and others, check their policies as procedures may vary. Generally, executors will need login details, a death certificate, and legal documentation. They will also need access to the bank account associated with your payment account.
Cryptocurrencies
Check to see if your platform allows users to designate beneficiaries directly. If you use digital wallets, make sure to include these in your planning. Some wallets offer helpful features such as multi-signature access.
How to Manage Your Mobile Devices
- Use strong passwords or biometric security features. Regularly update your security settings to protect against unauthorized access.
- Regularly back up your mobile devices to the cloud or an external hard drive to ensure that important data, such as photos and contacts, are preserved and accessible to your digital executor.
- Include instructions for accessing your mobile devices in your digital estate plan.
Balancing security and accessibility is a key challenge. While you want your assets to be secure, you also need to ensure they can be accessed by your heirs. By taking the time to inventory your digital assets, organize your passwords, and designate a trusted individual to manage your digital estate, you can provide peace of mind for yourself and your loved ones.
This post is meant to help you get started on your digital estate plan. Be sure to consult with an estate planning attorney for comprehensive advice.
For further reading, I recommend the following resources:
- Kelvin Chan’s article “One Tech Tip: How to prepare your online accounts for when you die” (October 24, 2024)
- Dana Schilling, JD’s 2022 book “Financial Planning for Senior Clients” ISBN 978-1-954096-41-7 Copyright © 2022 by National Underwriter Company
- US Bank’s website, for an excellent Digital Asset checklist