“Protecting Your Digital Assets” by Courtney L. Fletcher

If you pay your bills, access financial information and bank accounts and/or conduct business online, you need to consider who can access these accounts or even access your computer, notebook or smart phone in the event of your death or incapacity. The ability to conduct financial transactions and pay bills online has evolved in the last few years and, consequently, more and more people are choosing to conduct a majority of their financial transactions online.
Unfortunately, few people have a road map in place which provides any of the necessary passwords and data allowing a spouse or other fiduciary the ability or authority to access their digital accounts or digital assets. The term “digital assets” includes data, Internet accounts and other rights in the digital world. This data may be stored on your personal computer’s hard drive or it may be stored remotely and accessed by the Internet. Given that a study conducted by McAfee in 2011 found that Americans value their digital assets at more than $54,000 on average, it is important for you to put in place a plan with respect to these type of assets. There are several steps that you can follow to ensure that you have created a digital road map for your fiduciary to follow with respect to your digital assets.
First, keep a detailed list of all online accounts, including a list of all computers (including personal computers, notebooks, smart phones and other digital devices) that you use, as well as the passwords that you create for your accounts and devices. This list needs to be updated as you create new accounts, change passwords, or conduct transactions on the Internet. If something happens to you, this will greatly assist a properly appointed fiduciary’s ability to access your accounts and to ensure that there is no lapse in the payment of your bills. Your list should be kept in a very secure location, which is known only to a trusted family member or fiduciary.
Second, keep a list of all of your e-mail addresses and indicate what the e-mail address is used for (business or personal), as well as the password for those accounts. This ensures that your fiduciary will be able to access those accounts in the event of your death or incapacity. Since your internet accounts are governed by a contract between yourself and the service provider, a failure to provide your fiduciary with the valid password for your account may result in your fiduciary being denied access to your e-mail account. This becomes a problem if important correspondence is received via your e-mail account and no one has the authority to access that account.
If you conduct banking or financial transactions (including paying bills to certain service providers), it is wise to create a list of each bank/brokerage account, as well as your username and password. You should also keep a list of all service providers that you pay online or in which you receive online statements only. This ensures that your fiduciary is aware of all bills that need to be paid.
Third, keep a record of where your data is stored. Data can be stored on your computer’s hard drive, on removable media (such as a Flash memory card or disk) or on a remote Internet site. You should list where such data is stored and where the removable media is located and stored. If you use a remote site for storage, make sure to list the site, as well as your username and password.
Fourth, provide a list of all of your blogs, domain names and webpages and list the registrar/hosts for each. You should also provide instructions to your fiduciary as to whether you would like these sites to be continued in the event of your death or disability and, if so, by whom. You should also be sure to list any accounts or digital information that you consider important or valuable. This might include any domain names that you own or virtual currency, such as Bitcoins, that you possess.
It is important to realize that some digital assets may have nominal monetary value, but nonetheless may be priceless to you and your family. Digital assets such as photo storage sites, social media sites and email accounts may have great sentimental value to your loved ones. Again, it is vital that you provide a list of online sites used, as well as your usernames and passwords, so that these accounts can be accessed in the event of your death or disability. You should also consider providing instructions to your fiduciary regarding what you would like to happen to these accounts in the event of your death or disability. If you want your profile to be maintained, you need to list who is to be responsible and what you want them to do with it. You should also consider whether there is any sensitive information in your online accounts that you want to keep secret from family or friends. If so, you need to provide instructions to your fiduciary regarding how the information should be handled and by whom.
Finally, it is important to revise your estate planning documents to give your fiduciaries the power to manage your digital assets. Unless your estate planning documents have been updated recently, it is unlikely that these documents provide your fiduciary with the power to properly manage and dispose of your digital assets. Taking the steps outlined in this article will help ensure your fiduciary’s ability to manage your entire estate, which is likely to include more and more digital assets as technology advances!