Estate planning is something that most all of us have thought about. But sometimes we think of it in terms of what we have always known—tangible assets. As technology continually progresses, it becomes increasingly important to consider your passwords and virtual assets. What would happen to your online brokerage or banking accounts, your email, or even Facebook and Twitter accounts should you become incapacitated or die?
It is important to make sure that the pertinent account information is documented and stored somewhere, so loved ones and the executor of the estate have access to your digital records. Implementing a “VAIL” or Virtual Asset Instruction Letter can accomplish this task. A VAIL can outline who should settle your online accounts.
Some accounts, like brokerage or banking accounts, may automatically transfer to listed beneficiaries or the deceased’s estate. However, while a spouse may gain control of the account, it is equally important for the spouse to have access to the online records. A surviving spouse may wish to cease automatic payments, close accounts or cancel subscriptions no longer needed.
One tool you may wish to use is a password management program, such as 1Password or RoboForm, that records and tracks all websites and passwords. These are generally available for a reasonable price. A couple can use one master password to access the program, and then all website logins and their corresponding passwords are stored within. Even though one spouse may handle all the financial transactions, should something happen, the other spouse will be able to access all online accounts.
Another option is to record all website addresses, logins and passwords in a document and store it on a flash drive or CD that is then locked in a safe. You may wish to place your VAIL in a bank safety deposit box; however, once a safe-deposit box owner passes away, depending on state laws, it could take a court order to open the box.
For other virtual assets, such as your email accounts or social media accounts, you may wish to designate a younger family member or someone who is more apt to know how to best manage these types of accounts. In your VAIL, you may state your wishes for how the person responsible should handle the account. You may want your Facebook page to serve as a memorial where someone could post your last entry that you prepared ahead of time, and then after a certain time delete the account. You may wish that they delete the account immediately. You could also specify that the photos are printed off and distributed to family before the account is deleted.
At Henssler Financial we believe you should Live Ready, which includes planning for the distribution of both your tangible and virtual assets should something happen to you. If you have questions regarding your estate planning needs, the experts at Henssler Financial will be glad to help. You may call us at 770-429-9166 or email at experts@henssler.com.