4 steps to manage your digital afterlife
For better or worse, most of us will have a digital afterlife that will survive our physical existence here on Earth. To make the experience better rather than worse for those you leave behind, you'll want to manage your digital accounts to make sure your assets don't get buried in an "iGrave."
As with all your assets and possessions -- including your digital assets such as purchased music or books -- you should specify how your assets are to be distributed after you pass away. The best way to do this is with a written will to make sure the disposition of your assets meets your wishes. But the digital era throws in some new wrinkles when it comes to disbursing your assets after you die. Let's take a look at some of the more important steps you'll want to take.
1. Manage your online financial accounts
Many of us access our banking, insurance, and investment accounts online; each of these comes with various passwords and security features. In order to make it easy for your executor to do their job after you die, you'll need to create a written list of all your usernames and passwords for your executor and then keep that list updated. You'll also need to take steps to prevent this information from falling in the wrong hands either now or after you pass away. (Further on, I'll talk about online services that are available to help you organize your passwords and other security information.)
You'll also want to find out just what your financial institution's requirements are for processing your accounts after your death. Many just need a letter of testamentary from the appropriate court confirming the identity of the executor, as well as the original death certificate; providing that information gives the executor access to your accounts without having to know your password. Other institutions may freeze your account until all the necessary paperwork has been processed, and then require a new account to be established.
Whichever the case, you'll want to provide your executor with a list of the financial institutions where you have accounts as well as descriptions of those accounts, including approximate balances and whether you have a password on the account and what it is.
Another important list to create for your executor is one that identifies all the entities for which you've set up automatic online payments, including utilities, church tithings, and subscriptions. Or you could tell your executor to review the statements for the bank accounts and credit cards from which you make online payments.
2. Save your digital assets
Gone are the days when your favorite uncle willed his vintage record or book collection to you. Nowadays, what you might inherit or choose to bequeath might be a password-protected iPad or iPhone with a substantial music, movie, or book collection. It might even be stored in the iCloud. Now what?
If you remember to specify in your will who receives your digital devices and supply the password, your intended beneficiary can simply access the device and enjoy your collection. If you want your beneficiary to be able to transfer those assets to another device, you'll need to know the policies of the online provider. Many have the same requirements as the financial institutions mentioned above -- to access the account, the executor will need the account number, a letter of testamentary, and your death certificate.
3. Store your documents digitally
Can your executors easily find your will and other important documents? Or are they stored in a dusty box in your garage or attic? Could these documents be destroyed in a natural disaster or fire? If these questions concern you, you might want to consider storing your important documents digitally and letting your executor know how to access that information. New online services that can store your important documents digitally and keep track of your passwords include such companies as Siftsort, Entrustet, and SecureSafe.
These type of services have the additional benefit of helping you get organized while you're still alive; you won't have to sort through boxes in the garage when you need to access your documents at home or even while you're on the road. Instead, you can log on, put in your password, and immediately access the documents you need.
4. Keep a digital diary
It's easy to forget all the myriad websites, computer files, and passwords that you use and access in your daily life. To help you remember them all, keep a digital diary for a few months. Write down all the websites and computer files you access, so you can remember which accounts to tell your executor about and on which devices you might have digital assets, such as music or books.
How to protect your retirement savings from identity theft and internet fraud
Get your digital life organized, and you'll sleep better at night, knowing your money and other important assets can be easily disbursed to and enjoyed by your heirs long after you've passed through the pearly gates.
