Think about everything you do online in a typical day. You check your bank account, scroll through social media, send emails, store photos in the cloud, shop online, and perhaps even manage investments or cryptocurrency. Now imagine what happens to all of those accounts when you’re no longer here.
Your digital life doesn’t disappear when you do. Your accounts, devices, subscriptions, photos, and other digital assets remain—and your loved ones may be responsible for accessing them, closing them down, transferring assets, or stopping automatic payments.
That can be much harder than it sounds.
Since the dawn of the computer in the mid-1900s, our world has become increasingly digital. Passwords are stored on password-protected phones and computers. Important documents and memories live in “the cloud.” You can manage financial accounts, social media profiles, and subscriptions with a few taps.
Without a plan, your family may have no idea how to access any of it.
To illustrate just how complicated this can become, let’s meet Bertha.
Getting Access to Devices
Bertha was a hip grandma who loved her iPhone. It was password-protected, of course, as all hip grandmas’ phones should be!
When Bertha passed away, her family didn’t know her password. They even went to the morgue and asked if they could use her face to unlock the phone with Face ID.
The morgue refused.
Don’t be Bertha.
Instead, set up a legacy contact on your phone. A legacy contact is someone you authorize to access certain information from your device after you pass away.
Learn more about legacy contacts and how to set one up here.
Unfortunately, Bertha’s phone wasn’t the only digital problem she left behind.
What About Social Media?
Bertha was also active on Facebook. She regularly posted about how much she loved her grandchildren and used the platform to stay connected with old friends.
After she passed away, someone hacked her account and began messaging her friends, asking them for money.
Bertha was well loved, so some of her friends believed the messages were really from her and sent money. By the time they learned Bertha had passed away, it was too late to get the money back.
Don’t be Bertha.
Instead, set up a legacy contact for your social media accounts. Pre-authorize a trusted person to manage your Facebook, Instagram, and Google accounts. Not every platform offers this option; X, LinkedIn, Snapchat, and Reddit do not.
And social media is only one piece of the puzzle.
Don’t Let Subscriptions Outlive You
Bertha also did a lot of online shopping; she even had a few costly subscriptions to designer outlets. After she passed, the subscription continued billing her accounts. Her family knew about the transactions, but couldn’t stop them because they couldn’t log into her account.
Don’t be Bertha.
Instead, set up a password manager and give your trusted loved ones access. Options include 1Password, Bitwarden, and Dashlane.
But passwords aren’t the only thing your family may need to access.
Your Digital Assets Need a Place in Your Estate Plan
As an early adopter of the internet, Bertha started a YouTube channel. She never expected the silly thing to become popular, but it did. Eventually, Bertha was earning thousands of dollars each month from her channel.
When she passed away, however, the account was frozen. Her family didn’t have the authority or information necessary to manage the channel, and the royalties stopped.
Don’t be Bertha.
Instead, make sure your estate plan addresses your digital assets. Depending on the asset, that could include online businesses, digital accounts, intellectual property, social media accounts, digital photographs, and income-producing platforms. Updating your documents every 5-10 years is a great way to prevent your documents from going stale.
And then there’s the digital asset that can be particularly difficult to recover: cryptocurrency.
Don’t Lose Your Cryptocurrency
Bertha was also an early investor in cryptocurrency. Over the years, her holdings grew to six figures.
Her children knew she owned crypto because Bertha had given them plenty of unsolicited investment advice over the years. What they didn’t know was how much she owned, where it was held, or how to access it.
After her death, they couldn’t find the information they needed to recover the assets.
Don’t be Bertha.
Instead, keep an inventory of your crypto, including purchase details, your crypto key, and wallet type. Billions of dollars of crypto are forever inaccessible because the owner didn’t keep proper records.
Don’t Leave Your Digital Legacy to Chance
Bertha’s stories may sound exaggerated, but the underlying problems are very real.
Our digital lives have become an important part of our financial and personal lives, yet digital assets can be much more difficult for loved ones to access than traditional assets. A password, privacy policy, or missing piece of information can stand between your family and something that belongs to you.
The good news? A little preparation can make a big difference.
Create a plan for your digital legacy. Set up legacy contacts where appropriate, use a password manager, maintain an inventory of important digital assets, and make sure your estate plan addresses them.
No matter your age, don’t be Bertha. We never know when our loved ones may need access to our digital lives.
A little planning today can save your loved ones a lot of frustration later. Schedule a meeting with our team to make sure your digital assets are part of your estate plan.
