The current brouhaha over Apple's refusal to provide a hack into its own encryption system reminds me of the importance of passing on authority for access to the digital records of our own lives.
Rather than forcing someone to "hack" into your digital life, it is much easier on your family and loved ones to plan ahead and create some method of passing on your important data, and also making it clear who has authority to gain access.
It was straightforward, if not easy, not that many years ago. All you had to do was set up a paper filing system and then faithfully put the statements from banks, brokerages, insurance companies, etc. in their appropriate files. The executor assigned by your will and/or trust just had to open the file drawer and start looking.
Today, it depends on the degree to which you have gone "paperless," and some of you have gone "all the way." Without a physical record, it is possible to leave those behind you in the virtual dark as to your assets, or at least their location.
What of Your Life Is Online?
A good place to start is an inventory of digital assets. Include how and where they are held, along with user names, passwords and password
prompts. They can be written down, but then there is the security issue of where to keep (hide?) them and also the issue of updating passwords, which often change frequently. Some accounts require a change of passwords after a predetermined period of time.
One option is a password management program, a solution developed for current technology. It is like an online safety deposit box. These systems can store your information online and provide a way to pass it on to one or more people in the event of death or incapacity. A top-rated program is Dashlane. You can find a current review of this and other similar programs
here at PC Magazine. Some of these programs, particularly the ones you pay for rather than the free version, also memorize new user names and passwords automatically as they are input. If you change a password, the program automatically updates your files. Either way, you only have to remember (and pass along) one password to get into the system.
Who Decides Access?
Access to your digital life is actually a two-step process: you must provide the information to get in (usernames, passwords, etc.) but you also must provide the legal authority to gain access. The legal access issue is where your will and/or trust rule. Those documents should ultimately control who should inherit assets, not the online service provider.
Your online existence can carry on after you are deceased. Those of you who use Facebook might have noticed a birthday reminder for a deceased Facebook "friend." You can also get those automated "suggestions" from Facebook, LinkedIn and other sites to connect with those you know are deceased. Make sure that whoever does your estate plan includes a method to shut down your digital life within an appropriate time after your death.
A Document that Helps
We have developed a document that clearly assigns access to your digital life. Call me and we can discuss its use for you.
For a more detailed discussion of this issue, read
this article in Probate & Property magazine. It's written for lawyers, but the information is useful for everyone.
I'm always ready to take your call or respond to your email about this and other issues related to your estate planning.