Rosalind Evans
The numerous usernames and passwords that make up our digital life can be quite overwhelming. By drafting a digital estate plan, you can streamline the process for your family members to manage your accounts upon your passing.
The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), implemented in various states, allows your estate’s executor or attorney to access your online accounts in the event of incapacitation or death. This law safeguards your digital properties, but a structured digital estate plan is essential to ensure your family’s access to your digital assets posthumously.
The RUFADAA implements a three-tier system for accessing digital assets:
- Some digital service providers, like Yahoo, allow you to predetermine the fate of your assets after death. Your chosen designee will dictate the handling of your digital possessions.
- If such a tool isn’t available, your legally drafted documents should guide the asset’s management.
- If neither of the above options is applicable, the service provider’s terms of service will direct the executor to account access.
Understanding your digital estate is the first step to crafting an effective estate plan. Your digital estate comprises all your electronic and virtual accounts and assets, including:
- Social media, email, e-commerce, online banking, and gaming accounts
- Photos stored on cloud services
- Cryptocurrency keys and domain names
- Mobile apps, blogs, and associated domains
- Intellectual property, like text, graphics, and audio files
- Loyalty program benefits, such as credit card perks
- Utility accounts and online store accounts
While electronic bank accounts are deemed digital assets, their money is not. Similarly, the platform to access cryptocurrencies, such as Coinbase, is a digital asset, but the cryptocurrencies are not.
Follow these steps to formulate your digital estate plan:
- Take inventory:
Catalogue all your digital assets, including account names, usernames, and passwords. Store this information in a password manager or a secure document, and remember to update it regularly.
- Determine asset handling:
Provide guidelines on how your executor should manage your digital assets after your demise. State your wishes for each asset or account – should they be archived, deleted, or transferred? Review the company’s terms and conditions to ensure your directives align with their policies. Some companies, like Twitter and Google, have stringent legacy policies. Others, like Facebook, allow loved ones to “memorialize” your account for posts, photos, and quotes.
- Choose a digital executor:
While your traditional estate executor can perform this role, consider appointing a separate individual. Once you’ve made a choice, explain their duties and ensure they are comfortable with their responsibilities. Mention the digital executor in your traditional will for reference.
- Safely store your digital estate plan:
Keep all your digital estate planning documents in a secure, accessible location. The digital executor should have no trouble accessing these instructions. Platforms like Clocr and Trust & Will can aid in organizing your digital estate plan for emergencies or posthumous execution.
In states that haven’t adopted the RUFADAA, digital estate plans are informal. Thus, it’s advisable to formalize it by drafting a codicil or a will. Consulting with a legal or financial advisor regarding your digital property is also beneficial.
Navigating your digital footprint can be complex, but managing your digital estate can be simplified with careful planning. Remember, the overarching goal is to create a thorough and accessible digital estate plan that can assist your loved ones in the event of your passing. With these steps, you can confidently create a comprehensive digital estate plan that respects your wishes and helps your family quickly manage your digital assets.
