Digital Assets After Death: Protecting Your Online Legacy

Opening

My father, James, was an organized man of binders and file folders. He was a lawyer who kept perfect notes, in longhand on yellow legal pads as long as I can remember. His analog life was a fortress of organization. His digital life? That was another story entirely. After he passed away, we discovered that the man who had meticulously cataloged every insurance policy and bank statement had left behind a digital ghost town.

His computer was a locked box. We had the keys to the house, his car, and his safe deposit box, but finding the keys to his digital world was... tough.

This frustrating, time-consuming, and emotionally draining scavenger hunt, is what I want to help you avoid. In today’s world, our lives are increasingly lived online. We have digital bank accounts, social media profiles, and a vast constellation of online subscriptions. And if we don’t have a plan for what happens to all of that when we’re gone, we are leaving behind a legacy of chaos for our loved ones. This isn’t just about convenience; it’s about protecting your family from a modern-day form of probate, a digital purgatory that can be just as stressful and time-consuming as its legal counterpart.

Problem Statement

The problem is that our legal and social systems have not kept pace with the speed of technological change. We have centuries of legal precedent for how to handle physical assets like property and money, but we are in the Wild West when it comes to digital assets. A 2020 Gallup poll found that less than half of Americans have a will, and it’s safe to assume that even fewer have a plan for their digital assets. [1] This is a ticking time bomb for families.

When you die without a plan for your digital assets, you are leaving your loved ones with a series of impossible tasks. They will have to figure out what accounts you have, how to access them, and what to do with them. This can be a monumental undertaking. Think about your own digital life. How many online accounts do you have? How many passwords do you have? Now imagine trying to reconstruct all of that for someone else, all while you are in the depths of grief.

But it’s not just about the logistical nightmare. There are also serious financial and security risks. If your online banking and investment accounts are not properly managed, your family could lose access to much-needed funds. Your social media accounts could be hacked and used for malicious purposes. Your personal data could be stolen and used for identity theft. And your sentimental assets, your photos, your videos, your emails, could be lost forever. This is the modern-day equivalent of losing a box of family heirlooms. It’s a loss that can be just as profound, and just as permanent.

Main Content

Section 1: What Are Digital Assets? A Modern Inventory

Before you can create a plan, you need to understand what you're planning for. The term "digital asset" is broad, encompassing every part of your online life. My father had his banking app and an email account, but for many of us, our digital footprint is far more extensive. It's helpful to categorize these assets to ensure you don't overlook anything. We can group them into three main categories: financial, legal, and personal.

Taking stock of these assets is the first, most crucial step. It’s the digital equivalent of my father’s binder, and it’s the foundation of a sound digital estate plan.

Section 2: The Step-by-Step Guide to Creating Your Digital Asset Plan

Creating a digital asset plan is a methodical process. It’s not something you can do in an afternoon, but by breaking it down into manageable steps, you can create a comprehensive plan that will be a true gift to your family.

1. Create a Digital Asset Inventory: This is the cornerstone of your plan. Create a spreadsheet or use a dedicated service to list all of your digital assets. For each asset, you should include the following information:
   • The name of the service (e.g., Google, Facebook, Bank of America)
   • Your username or login ID
   • Instructions on how to access the account (but do not list your passwords here!)
   • Your wishes for the account (e.g., “Download all photos and then delete my Facebook profile,” or “Transfer the balance of my PayPal account to my spouse.”)
2. Use a Password Manager: This is the most secure way to manage your passwords. A password manager is an encrypted digital vault that stores your passwords and other sensitive information. You only need to remember one master password to access all of your other passwords. Popular and reputable password managers include 1Password, LastPass, and Dashlane. The beauty of this system is that you only need to share one password with your digital executor—the master password to your password manager.
3. Appoint a Digital Executor: A digital executor is the person you designate to manage your digital assets after you’re gone. This should be someone you trust implicitly, who is tech-savvy, and who is willing to take on the responsibility. You should name your digital executor in your will and give them a copy of your digital asset inventory. It's also wise to have a conversation with them about your wishes, so they understand the 'why' behind your instructions.
4. Leverage Built-in Tools: Many online services now have their own tools for managing your account after you die. Google’s Inactive Account Manager, for example, allows you to specify a trusted contact who will be notified if your account becomes inactive for a certain period of time. Facebook’s Legacy Contact feature allows you to designate someone to manage your memorialized account. Take the time to set up these features for your most important accounts.
5. Store Your Plan Securely: Your digital asset plan is a sensitive document. You should store it in a secure location, such as a safe deposit box, a secure digital vault, or with your estate planning attorney. Make sure your digital executor knows where to find it.

Section 3: The Role of the Digital Executor

Your digital executor is a fiduciary, which means they have a legal duty to act in your best interest. Their role is to carry out your wishes for your digital assets, as outlined in your digital asset plan. This can include a wide range of tasks, such as:

• Accessing your email and other online accounts
• Downloading and distributing your photos and other digital files
• Closing or memorializing your social media accounts
• Transferring ownership of your domain names and other digital property
• Closing out financial accounts like PayPal or Venmo

It’s a big job, and it’s one that requires a unique combination of technical skill, trustworthiness, and compassion. When you are choosing a digital executor, look for someone who is not only comfortable with technology but who also understands your values and will be a good steward of your digital legacy.

Section 4: Legal Realities and the Terms of Service

The legal landscape for digital assets is still evolving, and it’s a patchwork of state and federal laws. The primary federal law is the Stored Communications Act (SCA), which was passed in 1986, long before the advent of social media and cloud computing. The SCA generally prohibits service providers from disclosing the contents of a user’s communications without their consent. This is why it can be so difficult for families to access the email and social media accounts of a deceased loved one.

To address this issue, many states have passed their own laws, often based on the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). This act provides a three-tiered system for determining who has the right to access a deceased person’s digital assets:

1. A setting within the online service itself: If the service has a tool for designating a legacy contact (like Facebook or Google), that designation will be honored.
2. Your will or other legal document: If you have named a digital executor in your will, they will have the authority to access your digital assets.
3. The terms of service of the provider: If you have not made any other arrangements, the terms of service of the provider will govern.

This is why it is so important to have a plan. By creating a digital asset plan and naming a digital executor in your will, you are providing a clear legal framework for the management of your digital legacy.

Actionable Takeaways

1. Sign up for a password manager this week. Choose one of the reputable services like 1Password or LastPass and start adding your accounts. This is the single most important step you can take to secure your digital life.
2. Start your digital asset inventory. Create a simple spreadsheet and list your five most important online accounts. You don’t have to do it all at once. Just get started.
3. Check the legacy settings on your Google and Facebook accounts. Take five minutes to designate a legacy contact. It’s a simple step that will make a huge difference for your family.

CTA

Your digital life is a part of your story. Don’t let it become a burden for your family. The End of Life Playbook provides a secure, comprehensive platform to create your digital asset plan, ensuring your online legacy is handled with care and respect. Start your playbook on endoflifeplaybook.com

References

[1] Gallup. (2020). How Many Americans Have a Will?. https://news.gallup.com/poll/311666/how-many-americans-have-will.aspx

Section 5: Special Considerations: Cryptocurrency and Other Digital Assets

The digital landscape is constantly evolving, and new types of digital assets are emerging all the time. Cryptocurrency is a prime example. If you own Bitcoin, Ethereum, or other cryptocurrencies, your family needs to know about them and how to access them. Here are some key considerations:

• Cryptocurrency Wallets: Your cryptocurrency is stored in a digital wallet, which is accessed with a private key or seed phrase. This is similar to a password, but it's even more critical. If your family doesn't have access to your private key or seed phrase, they will not be able to access your cryptocurrency, and it will be lost forever.
• Documentation: Make sure you document the location of your cryptocurrency wallets, the exchanges where you trade, and the private keys or seed phrases needed to access them. Store this information in your password manager or in a secure digital vault.
• Legal Implications: The legal status of cryptocurrency is still evolving, and the tax implications can be complex. It's a good idea to consult with a tax professional or attorney who specializes in cryptocurrency to ensure that your digital assets are properly handled.

As technology continues to evolve, new types of digital assets will emerge. The key is to stay informed and to document all of your digital assets, whatever form they take.

Section 6: The Emotional Dimension: Your Digital Legacy

Beyond the practical considerations, there is an emotional dimension to your digital legacy. Your email accounts contain years of correspondence. Your social media profiles contain photos and memories. Your cloud storage contains documents and files that may have sentimental value. These are not just data; they are a record of your life.

When you create your digital asset plan, think about what you want to happen to these sentimental assets. Do you want your photos to be preserved and shared with your family? Do you want your emails to be deleted, or do you want your family to have access to them? Do you want your social media profiles to be memorialized or deleted? These are personal decisions, and they should be documented in your plan.

By addressing the emotional dimension of your digital legacy, you are ensuring that your family can grieve and remember you in a way that feels right to them.

Actionable Takeaways

1. Sign up for a password manager this week. Choose one of the reputable services like 1Password or LastPass and start adding your accounts. This is the single most important step you can take to secure your digital life.
2. Start your digital asset inventory. Create a simple spreadsheet and list your five most important online accounts. You don't have to do it all at once. Just get started.
3. Check the legacy settings on your Google and Facebook accounts. Take five minutes to designate a legacy contact. It's a simple step that will make a huge difference for your family.

CTA

Your digital life is a part of your story. Don't let it become a burden for your family. The End of Life Playbook provides a secure, comprehensive platform to create your digital asset plan, ensuring your online legacy is handled with care and respect. Start your playbook on endoflifeplaybook.com

References

[1] Gallup. (2020). How Many Americans Have a Will?. https://news.gallup.com/poll/311666/how-many-americans-have-will.aspx