Idaho Law Blog
By Lane V. Erickson, Attorney
Estate planning involves not only tangible assets such as houses, cars, and similar things. It also includes any intangible assets you own. What are intangible assets? These include things that you can’t physically touch, but that have value. For example, we live in a digital age which means that most of us have online “accounts”, such as YouTube, Facebook, Instagram, LinkedIn, or Twitter. We may also have online money accounts such as PayPal, peer to peer lending, or investment and retirement accounts. While having such assets is convenient, the problem is that under present law, it is not entirely clear who can access and manage your online assets when you die.
The estate planning laws in most states have not kept pace with technology. Additionally, many of the companies responsible for managing digital assets are concerned about violating applicable laws. These companies are also fiercely protective of their users’ privacy. Additionally, many states are working on legislation that could help protect yourself and your digital assets.
Despite this, the process that applies to managing most tangible assets should work with digital assets as well. Specifically, there are 3 simple things you can do to protect your digital assets.
1. Create a Handwritten Digital Account List
It’s pretty easy to grasp the fact that if your family doesn’t know you have a PayPal account they won’t access it. You can eliminate the fear of your account sitting out in the digital ether for eternity, especially if your family will need that asset. So, the most important thing you can do is to create a list of all your digital accounts. This list should include your usernames and passwords, password prompts and/or security questions. However, and this cannot be overemphasized, it is important to keep in mind that your list is full of sensitive information. Do NOT type this list on your computer. It should be handwritten. It is ok to create a photocopy to keep in a safe place but do not type it on your computer, or scan it, or e-mail it to anyone. Digital thievery is real, and it happens all the time. If you ever lose the list then treat your accounts like a lost or stolen credit card. Change all of your passwords or report your problem to the company and close your account.
Keep in mind that your handwritten digital account list should not be a part of your Will or other estate planning documents. These types of documents will at some point be filed with the court and become part of a public record. Instead, leave instructions on where your list is kept, and how to access it.
A second thing to keep in mind is that your e-mail is included as one of your valuable digital assets. Your email accounts should be accessible to your loved ones after you are gone because they will be important for them to manage your assets. You likely receive communications from your financial institutions via email which will help your family manage these digital assets.
2. When You Can Name a Backup Person
Some companies that provide online accounts for you allow you to name another person who can access your accounts. Google, for example, created an “inactive account manager” option for users that allows them to name a person to be contacted when an account is inactive for a certain period of time. Likewise, Facebook recently began allowing users to name another person as a “legacy contact” for their accounts when they are inactive.
Additionally, many online money account companies, like traditional banks or other financial institutions, allow you to name beneficiaries or joint account holders as well. Every online money account should provide you with the ability to review the account agreement and/or provide other options for you to make or change your elections online. If the online account you are using doesn’t provide this then contact the company to find out why. If there is no such option then you should consider switching to a company that does provide these options.
3. Provide Specific Instructions to Your Loved Ones
Don’t plan on using your estate planning documents to control your digital assets. However, you can still use your estate planning documents to tell your loved ones what your specific intentions are. Use your Durable Power of Attorney to explicitly state that your named fiduciary has the power to access and manage your digital assets for you while you are alive. Then use your Last Will and Testament to give your personal representative this same power when you die.
It is true that the estate planning laws concerning digital assets are quickly evolving. However, by completing the simple steps listed above, you will be comforted in knowing that your digital assets are protected and that you can pass them on to your loved ones along with your regular assets.
Call us toll free at 877-232-6101 or 208-232-6101 for a consultation with Lane Erickson and the Racine Olson team of Estate Planning attorneys in Idaho. You can also email Lane Erickson directly at lve@racinelaw.net. We will answer your Idaho Estate Planning questions and will help you solve your personal estate planning needs.