Your Digital Assets Need Planning, Too

A person’s digital assets include, for example:

• Social media profiles on Facebook, Instagram, LinkedIn, and other similar platforms;
• Subscriptions and memberships with online services like Audible, Kindle, Netflix, and Spotify;
• Cloud storage (Google Drive, Dropbox, iCloud, etc.) for photos, video, and other digital assets; and
• Online accounts for email, health records, and government programs like Social Security,  Medicare, and VA benefits

Accounts like these can have financial, sentimental, and legal value. For example, social media profiles might hold priceless memories and photos, subscription services could have recurring fees that add up quickly, and email or cloud accounts might contain important legal documents. Losing control of them can open a door to identity theft, losing photos and memories you hold dear, and continuing subscription charges that have outlived their usefulness.

Simple planning steps

The ability to store, retrieve, and manage your digital information and assets online is most often a convenience and timesaver. But to a loved one or executor who may have to step into your shoes if you were to die or become seriously ill, accessing and sorting out your online accounts and subscriptions could be a challenge. Having a plan prepared ahead of time can make a significant difference.

• Create an inventory: Begin by listing all your online accounts and digital assets. Include login credentials, account numbers, and any security questions or recovery options. Don’t forget to account for lesser-used accounts such as online forums or hobby memberships.
• Name someone to step in if needed: This would be a person you entrust with the responsibility of managing, transferring, or closing your online accounts according to your wishes.
• Document your instructions: Clearly outline what should happen to each digital asset. For example, you might want your social media profiles memorialized, your photos shared with family, or certain accounts permanently deleted.
• Secure your information: Store your account inventory and instructions in a secure location, such as a password manager or encrypted digital file.
• Periodically review and update your inventory and plan: Most people’s online presence changes constantly. Passwords are replaced. Accounts are open and closed. Subscription levels  change. So, it makes sense to review your inventory and plan every few months to keep it current and complete.

Legal considerations and helpful resources

Typically, digital assets have not had the same level of importance in estate planning as other physical property, assets, and obligations. But assets and obligations they are, nonetheless. So, if you can, make this aspect of planning part of your larger process of estate planning. Doing so ensures that your wishes for your digital accounts line up with your broader legacy goals and helps avoid potential complications for your loved ones. An estate planning advisor can help you understand and navigate your risks and options.

In addition to consulting with an estate planning expert, here are two further resources to consider:

• Password managers like LastPass and 1Password have become popular and can help securely store and share login credentials;
• Digital services and social media platforms may offer their own “legacy” options. Google, for instance, offers an Inactive Account Manager that allows you to set up automatic actions for accounts after a period of inactivity. Facebook lets users designate a legacy contact, who, if you die, would be allowed to manage parts of your Facebook account, such as changing your profile picture, accepting friend requests, or deciding to permanently delete your profile.

Your digital estate is part of your legacy you shouldn’t overlook. Taking time to organize and plan for your online accounts, subscriptions, and memberships will help ensure your wishes are honored and spare your loved ones unnecessary stress. Start small: make a list, assign a digital executor, and consult a professional for guidance if you feel you need it. Creating a roadmap for dealing with your online information and accounts is a simple, but valuable gift to yourself and those you love.