Estate planning beyond the will: What happens to your digital life?

27 Aug Estate planning beyond the will: What happens to your digital life?

Most of us understand the importance of having a Will. It can help determine what happens to our property, investments and possessions and provide greater certainty for the people we leave behind.

But modern estate planning may need to go much further.

Think about how much of your life is now protected by a password, PIN, authentication app or mobile phone. Banking, investments, superannuation, insurance, email, photographs, cloud storage, social media, utilities, subscriptions and even important family documents may all be sitting behind a digital lock.

If something happened to you tomorrow, would your family know where to start?

Your family may not know what you have

One of the biggest challenges can simply be identifying everything that exists.

You may know that you have three bank accounts, two investment platforms, a superannuation fund, several insurance policies and important documents stored online. Your spouse or children may not.

Consider recording the existence of important information such as:

Bank and financial institution details
Superannuation and investment accounts
Insurance policies
Accountant, solicitor and Financial Adviser contact details
Property and mortgage information
Utility providers and regular bills
Email and cloud storage accounts
Social media accounts
Mobile phone and computer access information
Important photographs and family videos
Memberships and subscriptions
Location of original Wills, Powers of Attorney and other legal documents

The objective isn’t necessarily to give everyone immediate access. It is to leave behind a clear roadmap.

What about passwords and PIN numbers?

Passwords and PINs require particular care.

Writing every password on a piece of paper and leaving it in an obvious drawer may create a serious security risk. Similarly, putting sensitive passwords or PINs directly into a Will may be inappropriate because a Will can pass through a formal legal process and may ultimately be accessible by people other than those you intended.

A better approach may be to discuss secure alternatives with your solicitor, Financial Adviser or other appropriate professional.

For some families, this could involve a reputable password manager, with instructions about how authorised people can gain access when appropriate. Others may maintain a secure physical record stored in a safe, solicitor’s office or other protected location.

Whatever method you choose, it needs to be both secure today and accessible when genuinely needed.

Don’t forget two-factor authentication

Passwords are only part of the puzzle.

Many accounts now require a security code sent to your mobile phone, email address or authentication app. If your family cannot access your phone or primary email account, even knowing your password may not be enough.

Your estate planning conversation should therefore consider how important digital accounts can be appropriately managed after death or incapacity.

Create an Estate Information File

One practical approach is to create an Estate Information File or personal estate booklet.

It doesn’t have to contain every password. Instead, it can explain what you have, where important documents are located, who your professional advisers are and where secure access information can be found.

Review it at least annually because accounts, passwords, advisers and circumstances change.

Your Financial Adviser, solicitor or estate planning professional may already have a booklet, checklist, digital vault or recommended password management system that can help you begin.

Think about your memories too

Estate planning isn’t only about money.

Where are your family photographs stored? What about decades of videos in iCloud, Google Photos, Dropbox or other services? Would your family know how to access them?

Those files may eventually become some of the most precious assets you leave behind.

Make things easier for those you love

Good estate planning is partly about transferring assets. But it is also about reducing confusion at an already difficult time.

A Will remains enormously important, but perhaps the next question should be:

If I wasn’t here tomorrow, would the people closest to me know what I have, where to find it and who to contact?

Speak with your Financial Adviser and legal representative about extending your estate planning beyond the Will. A little organisation today could save your family considerable stress, uncertainty and frustration in the future.

If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.

This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.

(Feedsy Exclusive)