Plan Your Digital Estate
Although it's not my role to give you specific advice about your estate, I would like to tell you a story as a way of introducing you to digital estate planning:
My client Maxine died suddenly. I was helping organize her digital and tangible documents. Maxine's executor notified the banks and other financial institutions of her death. But figuring out the passwords, user codes and security questions needed to access Maxine's accounts took weeks of hard work to untangle. And just when the family thought the estate was well on its way being settled, digital assets emerged. There was a web-only checking account Maxine had in the cloud with no paper trail, and a PayPal account without any hardcopy statements.
We all have tangible and digital assets and information. I read about a man who owned a "digital sword" he purchased for $17,000 to play high-stakes, international video games - legally it was considered an estate asset. I'd like to suggest that this year you:
- Create a password-protected document (like an Excel spreadsheet) of your login information so your executor and family can settle your account with less fuss and muss. In addition to your online accounts, consider "invisible" (web-only) accounts, including checking and savings accounts, investment and insurance accounts, as well as other places money might be stowed, like PayPal accounts.
- Inventory your digital assets and list how to gain access to them. Include the aforementioned accounts plus Bitcoins, royalties you may have coming in from the sale of eBooks on Kindle and Nook, seller's accounts you might have with eBay, digital swords, etc. - you'd be surprised how many assets you have when you sit down and think about it. Even your domain name might have value to your estate. Find out at sedo.com
- Consider the Excel spreadsheet or other document you create a part of your final documents. Lock it down with a password, disclosed only to your executor, of at least 15 mixed characters and numbers. Keep a hardcopy with your Will. Download it to a flash drive and hand it to your executor. Keep a copy for yourself on a flash drive and consider not having a copy on your hard drive at all. Some folks also like to store a copy in the cloud.
Guest columnist Judith Kolberg is the founder of Fileheads organizing service. Watch for her Digital Estate Planning eBook coming February 10. Meanwhile, you can download her free Digital Estate Plan Checklist. Please consult with your accountant, lawyer, estate planner, or other professionals involved in the disposition of your estate about developing your Digital Estate.
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